Watch Monday’s analyst calls: JPMorgan Chase gets downgraded, consulting stock is a buy Latest Wall Street Market News
(This is CNBC Pro’s reside protection of Monday’s analyst calls and Wall Street chatter. Please refresh each 20-Half-hour to view the most recent posts.) A banking massive and a consulting corporate have been a few of the shares being mentioned by way of analysts on Monday. Morgan Stanley downgraded JPMorgan Chase to equivalent weight from obese. Meanwhile, TD Cowen raised its score on Accenture to buy from dangle. Elsewhere, TD Cowen raised its value goal on Costco to $975. Check out the most recent calls and chatter beneath. All instances ET. 7:58 a.m.: Morgan Stanley names Autodesk a best pick out Investors have a probability to buy Autodesk at a cut price forward of what must be a duration when the corporate’s margins make bigger, in step with Morgan Stanley. Analyst Elizabeth Porter named the device stock a best pick out, announcing in a word to shoppers that Autodesk’s objective of long-term margin enlargement to be a few of the “best in the industry” turns out believable. “Autodesk shares are trading at a multi-turn discount to both design software and scaled software peers … while fundamentals are passing the trough on FCF, revenue growth, operating margin and investor sentiment. As such, we see a favorable risk/reward with an opportunity for both EPS and multiple expansion,” the word mentioned. Morgan Stanley has a value goal of $320 consistent with proportion for Autodesk, which is nearly 18% above the place the stock closed Friday. — Jesse Pound 7:57 a.m.: Barclays downgrades Procter & Gamble to equivalent weight Procter & Gamble’s natural gross sales expansion trajectory seems to be falling at the back of its friends, in step with Barclays. Analyst Lauren Lieberman downgraded stocks to equivalent weight from obese and saved her $163 value goal, which suggests about 6.5% upside, unchanged. The stock is up 18.4% yr to this point. “As we’re taking a more disciplined approach to relative valuation and looking at P & G’s organic sales growth trajectory versus multinational peers over the next 12 months we prefer to move to the sidelines,” Lieberman mentioned in a word. Lieberman famous that P & G has been and must proceed to be a “best in class operator” within the broader shopper staples shopper, however that the corporate’s oversized publicity to expansion or declining markets — like China — is impacting its gross sales. According to the analyst, P & G’s general expansion over the following one year may well be weighed down by way of a slowdown in different markets whilst expansion in its house marketplace of the U.S. has remained robust. — Pia Singh 7:50 a.m.: Seaport upgrades Walt Disney Disney is beginning to win over a few of its critics. Seaport analyst David Joyce upgraded the leisure massive to buy from impartial, announcing in a word to shoppers that the transfer was once a “mea culpa” from a downgrade in August. “While we have tangibly soft Parks data, it is likely temporary, and emergent [direct to consumer] profitability is getting the benefit of the doubt, with recent price increases and paid sharing announcements possibly supporting further [average revenue per user] and sub growth,” the word mentioned. The new govt stimulus in China may just additionally give a spice up to Disney’s theme park trade, the word mentioned. Seaport has a $108 consistent with proportion value goal on Disney, which is greater than 12% above the place the stock closed Friday. — Jesse Pound 7:39 a.m.: Citi ups value goal on Shopify, sees 30% upside Shopify stocks may just rally greater than 30%, in step with Citi. The company upped its value goal at the e-commerce corporate to $103 from $90 a proportion, viewing stocks as buying and selling at a wonderful access level. “We remain optimistic on accelerating revenue growth in 2H24 with profitability set to inflect in 2025,” wrote analyst Tyler Radke. “We also view Shopify as a beneficiary of a lower rate environment, which will benefit consumers, merchants and drive [gross merchandise value].” Radke additionally cited an “upbeat tone” from control in regards to the corporate’s upmarket push, bills and service provider answers merchandise a few of the causes for the objective carry. — Samantha Subin 7:04 a.m.: TD Cowen raises Costco value goal TD Cowen is much more bullish on Costco after web hosting the corporate’s management for a post-earnings assembly. Analyst Oliver Chen reiterated his buy score at the warehouse store and moved his value goal upper by way of $50 to $975, suggesting about 10.2% possible upside. This yr, Costco stocks have won greater than 34%. “Costco’s tried-and-true approach remains at the heart of all strategic innovations; however, in our view Mr. Millerchip’s signature trademarks bring a new emphasis on digital scale, customer analytics & personalization, and membership experience enhancements,” Chen mentioned after his assembly with leader monetary officer Gary Millerchip. He cited club perks akin to Costco Next supply and new app improvements with stock availability and seek optimization. Chen added that Costco is well-positioned to proceed producing “robust earnings growth” over the with reference to medium time period, and that he perspectives the stock as probably the most shops that is highest ready to win marketplace proportion over the approaching quarters. The corporate’s sq. photos expansion, club income expansion, and bodily and virtual momentum all lend to Costco’s dominance, in step with the analyst. — Pia Singh 6:50 a.m.: Deutsche Bank lifts value goal on Robinhood Robinhood Markets’ robust beneficial properties don’t seem to be slowing down simply but, in step with Deutsche Bank. Analyst Brian Bedell reiterated his buy score and lifted his value goal by way of $3 to $27, implying about 13% upside. The stock has jumped greater than 85% yr to this point. “We remain encouraged about HOOD’s revenue and earnings momentum from a range of initiatives designed to bring more customers to the platform, better leverage addressable markets, and deepen user activity across products & services,” Bedell mentioned after web hosting an investor team assembly with Robinhood on Thursday. Bedell expects the corporate to generate internet new belongings at an annualized tempo of nicely over 20% thru 2025 and 20% in 2026, which he expects to gasoline endured adjusted EBITDA margin enlargement and powerful double digit EPS expansion. — Pia Singh 6:32 a.m.: Wells Fargo upgrades American Express, mentioning ‘sexy’ EPS expansion Wells Fargo is constructive that American Express can be expecting robust income expansion heading into its third-quarter print. Analyst Donald Fandetti upgraded stocks to obese, forecasting endured strong spend expansion charges from top rate customers. His $300 value goal suggests stocks can achieve 10.7%. This yr, the stock is up 44.7%, a long way outpacing the wider marketplace. AXP YTD mountain AXP yr to this point “We are comfortable owning the stock into the Q3 print as we see them hitting revenue est’s, unlike the top-line miss last qtr,” Fandetti mentioned in a Monday word to shoppers. “While there’s some cooling-off of consumer strength, we still see AXP generating attractive mid-teens EPS growth. We feel best about the affluent consumer vs the low-end/middle.” The thinks American Express is “well positioned to expand on their leadership position” within the top rate phase, anticipating that the corporate’s Delta and Gold card refreshes will upload expansion of their card charge income. — Pia Singh 6 a.m.: Piper Sandler upgrades Amerant Bancorp, says stocks can rally just about 29% Florida-based financial institution Amerant Bancorp’s fresh capital lift has placed the stock for stable development, in step with Piper Sandler. Amerant on Thursday priced a $165 million gross capital lift at $19 consistent with proportion, issuing more or less 8.7 million stocks. With that, analyst Stephen Scouten upgraded Amerant to obese from impartial and raised his value goal by way of 50 cents to $25.60. That suggests the stock — which is down 16.5% yr to this point — can soar 29.2% over the following yr. “We are upgrading shares to Overweight based on the attractive risk/reward dynamics in the shares post the raise,” Scouten mentioned in a word, additionally lifting his 2025 and 2026 revenue consistent with proportion objectives for the financial institution. “AMTB is now armed with ample capital to grow rapidly within its Florida markets as it has now moved through the last stage of its multi-year transformation and into an execution stage.” — Pia Singh 5:50 a.m.: Morgan Stanley downgrades JPMorgan Chase to equivalent weight JPMorgan Chase is a few of the worst-positioned for price cuts in the course of the finish of 2025, in step with Morgan Stanley. Analyst Betsy Graseck downgraded the financial institution to equivalent weight from obese, forecasting little or no internet hobby margin enlargement on the financial institution over the close to time period. Her $224 value goal implies 6.4% possible upside for the stock, which has won 23.8% this yr. JPM YTD mountain JPM yr to this point “JPM management has consistently reminded the Street that they are asset sensitive and over-earning on [net interest income],” Graseck mentioned about JPMorgan stocks in a Monday word. “We see more room for positive [net interest margin] surprises elsewhere in our coverage, model negative operating leverage next year and are taking some chips off the table after outperformance.” Graseck additionally expects the financial institution to ship more or less -3% working leverage subsequent yr, which is probably the most adverse amongst its large-cap banks protection. The analyst mentioned that a sooner tempo of rate of interest cuts is normally sure for NIM at midcap banks, whilst being extra combined for enormous cap banks. Lower charges are a sure for capital markets revenues, in particular benefitting large-cap banks, she added. — Pia Singh 5:50 a.m.: TD Cowen upgrades Accenture Investors must buy stocks of Accenture as the corporate’s restoration beneficial properties steam, in step with TD Cowen. Analyst Bryan Bergin upgraded the consulting massive to buy from dangle. He additionally raised his value goal on stocks to $400 from $321, implying upside of 14.4% from Friday’s shut. “ACN reinforced the demand stabilization theme & initial FY25 guide is appropriately positioned for positive revisions,” Bergin wrote. “Gen AI traction, and potential demand tailwinds connected to Fed rate cuts that should be supportive of CY25 IT budgets & tech multiples” “At a higher level, our upgrade is a call on a directional improvement in the Services sector — with ACN serving as a vehicle for many investors to gain sector exposure — and progress across multiple areas of ACN’s business,” he mentioned. Accenture stocks are flat yr to this point. However, they have got popped greater than 13% during the last 3 months. ACN 3M mountain ACN 3-month chart — Fred Imbert
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