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(This is CNBC Pro’s live coverage of Monday’s Analyst Conference Call and Wall Street Chat. Refresh every 20-30 minutes to see the latest posts.) Mondays at Home Center Stocks got a lot of attention, but not in a good way. Oppenheimer downgraded Home Depot and Lowe’s results from outperform and lowered his price targets for both companies. On a brighter note, Goldman Sachs upgraded Brazilian payments stock Stoneco, calling for further gains ahead of a strong 2023. Check out the latest calls and conversations below. Always Eastern Time. 6:26 a.m.: Morgan Stanley upgrades International Flavors & Fragrances, points to attractive valuation Morgan Stanley says the downgrade cycle for International Flavors & Fragrances has come to an end, and the bottoming out of the consumer cycle is a good bet for the stock. The company believes it will present an “attractive opportunity.” The bank upgraded the stock from equal weight to overweight and raised its price target from $81 to $90 per share. Morgan Stanley’s forecast suggests an increase of more than 13% from Friday’s close. International Flavors & Fragrances is down about 2% so far in 2024. Stocks have had a tough year, falling more than 22% in 2023. “Perhaps 2024 could still partially be a transition year, but investors will be watching until the end because the stock looks attractive,” said analyst Lisa De.・Mr. Neve said. He added that with EBITDA growth expected to be 14.8% this year, adjusted earnings per share expectations are approximately 12% above consensus estimates for 2024. —Brian Evans 6:05 a.m.: HSBC downgrades Lululemon on slowing growth as peers close gap His HSBC says Lululemon will have a hard time replicating its exceptional 2023 performance in the new year. . The company downgraded the stock from buy to hold in its 2024 Global Sporting Goods Outlook and maintained its $500 per share target. HSBC’s forecast suggests an increase of more than 3% from Friday’s closing price of $484.02. Lululemon is down more than 5% this year. In 2023, the stock price also increased by more than 50%. LULU 1Y Mountain Over the Past Year He’s LULU “The near-term growth outlook for the sector as a whole is difficult and we think it’s time to be a little more selective when choosing stocks,” he is an HSBC analyst says Anne. – said Laure Bismuth. “While Lululemon’s fundamentals are undoubtedly best-in-class, we do not believe the valuation is compelling enough to recommend investors buy at current stock levels.” — Brian Evans 5:45 a.m.: Oppenheimer Oppenheimer downgrades Home Depot, gives Lowe’s 2024 outlook above ‘unfavorable’; Oppenheimer says short-term conditions for Lowe’s and Home Depot stocks weigh on both companies We believe this will be complicated by “complacent” market positioning. In a note on Monday, the company downgraded the market performance rating for both stocks from outperform and lowered their price targets to $345 for Home Depot stock and $230 for Lowe’s stock. Mr. Oppenheimer’s forecast suggests that Home Depot stock will fall about 5% in the future, while Lowe’s stock will rise 5%. Home Depot’s stock is up 5% since the beginning of the year, while Lowe’s is down more than 1%. ”[W]Short-term market positioning for HD and LOW has become too complacent, and by early fiscal year 2024 (January 2025), the stock price is likely to be high enough against the possibility of sustained fundamental weakness in chain stores. “We’re concerned that it may no longer be discounted,” said analyst Brian Nagel. HD’s initial guidance for 2024, LOW, could be an adverse catalyst for the stock. “Investors looking forward to the sector and the prospect of HD and LOW trend strengthening starting in late 2024 are likely to be presented with better entry points in the coming weeks and months.” added. Brian Evans 5:45 a.m.: Goldman Sachs Upgrades Stoneco, He Says Goldman Sachs: Brazilian Payments Stock Stoneco Could Continue Rising Even After Stunning Performance in 2023 I think there is. “Stone is the preferred name in the Brazilian payments industry given its excellent sales and earnings growth prospects,” said analyst Tito Labarta, with a new forecast calling for a 23.3% upside. are doing. [total payment volume] Tracking the industry in 2023 (11% y-o-y), Stone’s positioning in the MSMB segment ensures stronger growth in 2024 (15% vs. 10% in the industry) and a 60bps market share gain may lead to. ” STNE 1D Mountain STNE Pop Indeed, LaBalta said the company may be under pressure due to increased competition. — Fred Imbert
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