(This is CNBC Pro’s live coverage of Thursday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Some of the biggest calls on Thursday involved a banking giant and a red hot insurance stock. Wells Fargo raised its price target on Bank of America, now calling for more than 15% upside. Meanwhile, HSBC upgraded Allstate after a strong start to the year. Check out the latest calls and chatter below. All times ET. 8:04 a.m.: Jefferies reiterates buy rating on Portillo’s, says growth story is overlooked Jefferies said Portillo’s’ fundamentals remain strong and that a recent pullback in the stock presents a buying opportunity for investors. The firm reiterated a buy rating on the beef stock on Thursday, and lowered its price target to $21 per share from $24. Jefferies’ forecast implies more than 49% upside from Wednesday’s $14.05 close. The stock has been under pressure in 2024 with a 12% decline. However, analyst Andy Barish says the pullback is “unwarranted” and added he sees “an attractive [opportunity] for investors seeking quality, early-stage growth with an improving degree of visibility.” The analyst noted that Wall Street could be overlooking the company’s quality growth story, while Portillo’s is also in the beginning stages of growing its total addressable market. “We see significant runway at Portillo’s, with the company leveraging industry Leading unit productivity and consistent execution, which we believe could translate into meaningful upside within the LT framework,” Barish added. â Brian Evans 7:31 a.m.: Citi keeps buy rating on Boeing Despite recent troubles, Citi is standing behind Boeing . Analyst Jason Gursky has a buy rating on the embattled airplane maker. He lowered his price target by $11 to $252, which reflects upside potential of 31.3% compared with Wednesday’s close. Boeing shares have struggled since a door plug blew off during an Alaska Airlines flight earlier this year. That sparked a reputational crisis and leadership shakeup, with the CEO now set to step down at the end of this year. Shares have tumbled more than 26% year to date, making it the worst performing stock in the Dow Jones Industrial Average. “In our view, the fundamental outlook for commercial aerospace and Boeing has not changed â demand for new aircraft remains robust and there are only two major competitors that can fulfill it,” Gursky told clients. “Execution is thus key, and on this front Boeing has stumbled,” he added. “But we don’t think that’s a permanent state.” Once execution challenges have been resolved, Gursky said focus will turn to balance sheet repair. He said Boeing can benefit from new management and a shift from focusing on growth to quality, among other changes. While the analyst said patience will be required on the part of investors, the naming of a new CEO and the lifting of regulatory restrictions can be catalysts in the near term. â Alex Harring 7:15 a.m.: Baird keeps underperforming Five9 as top communications software pick Following a conference on communications software, Five9 remains Baird’s top pick in the space. “FIVN remains our top UC idea, and we like the risk/reward at current levels,” analyst William Power wrote to clients. Power has a $90 price target on the cloud software stock, implying shares can rally 44.5% in the next year. He pointed to the launch of a generative artificial intelligence studio from Five9 as one of its most notable announcements from the event. This should allow for a more customized use of the technology in Five9’s contact center, he said. A rally would mark a turn for the stock, which has dropped more than 20% this year. â Alex Harring 7 a.m.: RH can rally more than 40% as demand turns around, Guggenheim says Luxury retailer RH could be in for a demand inflection and large share gains, according to Guggenheim. Analyst Steven Forbes reiterated his buy rating and best-idea designation following RH’s latest quarterly report. Forbes’ $425 price target implies the stock can climb 43.1% from Wednesday’s ending price. “In our view, RH’s 1Q & full-year 2024 financial outlook reflects the arrival on the highly anticipated inflection in demand revenue trends,” Forbes said. On Wednesday, RH reported earnings and revenue for the fourth quarter that missed the consensus forecasts of analysts polled by FactSet. But the company offered a strong outlook for demand and revenue growth in the full 2024 year, sending shares up nearly 8% in Thursday premarket trading. Forbes called that full-year guidance “dynamic yet encouraging.” The call comes amid a period of relatively weak underperformance for the stock, with shares up less than 2% in 2024. RH shares have lagged the broader market every year since 2021 began. â Alex Harring 6:47 a.m.: Cintas is a ‘compounding growth machine,’ BofA says Cintas likely has more steam in its rally following a strong quarterly earnings report, said Bank of America. Analyst Heather Balsky raised her price target on the consumer product maker by $85 to $785, reflecting upside potential of 14.5%. She also has a buy rating on the stock, which she called a “compounding growth machine.” “Cintas posted a healthy F3Q24 EPS beat with impressive incremental margins benefitting from technology investments and increased efficiencies,” Balsky wrote to clients. The company said Wednesday that it earned $3.84 per share on $2.41 billion in revenue for the third fiscal quarter, topping consensus expectations of analysts polled by FactSet. Cintas also raised its full-year outlook for both measures, offering ranges above where the Street anticipated. Balsky noted that organic growth has remained above the 7% long-term target due to strong volumes. And she said the stock price should continue to rise as long as the company keeps delivering compounding growth rates for earnings per share in the double digits. Cintas shares have climbed nearly 14% thus far in 2024, meaning it has outperformed the broader market. â Alex Harring 6:27 a.m.: KeyBanc: Robinhood has more room to run Robinhood can rally further as trading activity increases, according to KeyBanc. Analyst Alex Markgraff increased his price target for the financial services stock by $7 to $22, now implying 9.9% upside. He also has an overweight rating on the stock. “Our estimates move higher across the board as we model a higher level of trading activity and net deposits than initially anticipated, much of which drops to operating income considering a highly fixed expense base,” Markgraff said to clients. Markgraff tied his target hike to expectations for higher estimates elsewhere and a bigger multiple. He said these are all deserved given the improving margin profile and continued opportunities for growth. Robinhood shares advanced more than 1% in Thursday premarket trading. Shares have already surged more than 57% in 2024. â Alex Harring 6:26 a.m.: Grindr can rally more than 20%, TD Cowen says TD Cowen opened coverage of Grindr , the dating platform focused on LGBTQ men, with a bullish outlook. Analyst John Blackledge initiated coverage of the stock with a buy rating and $12 price target. Blackledge’s target for shares reflects the potential for upside of 23% over the next year. “Grindr has established itself as the leading LGBTQ+ social dating app through strong brand awareness, despite its relatively nascent tech. & product offerings,” Blackledge wrote to clients Thursday. Grindr has a “first mover” advantage within the LGBTQ community, Blackledge said. It’s also tied to a large and growing total addressable market, with the global number of LGBTQ men between 18 and 65 years old expected to rise more than overall population trends. Blackledge pointed to high engagement from the LGBTQ men it’s targeted at, as well as little need to advertise given the app’s place within the community. Looking ahead, he said Grindr can get a boost from new features tailored at use cases such as traveling or community building. Between 2024 and 2029, Blackledge said to expect an annual revenue growth rate of around 13% and EBITDA margins above 40%. The stock first went public in the late innings of 2022’s market sell off. After dropping more than 54% in that year, shares roared back to life with a jump of more than 88% last year. The stock has gone on to add more than 11% in 2024. GRND YTD mountain GRND in 2024 â Alex Harring 5:52 a.m.: Bank of America turns bullish on Estee Lauder Bank of America moved off the sidelines on Estee Lauder shares as the bank sees a “Cinderella story.” Analyst Bryan Spillane upgraded the beauty products maker to buy from neutral. Spillane also upped his price target by $10 to $170, which now implies a 17.2% upside. “There are a range of initiatives in motion to recover profitability, sharpen brand/product efficacy/proposition and achieve more balance (sales growth and profit) across channels and geographies,” Spillane wrote in a Thursday note to clients. While Estee Lauder’s Chinese market is still volatile, Spillane said the inventory has been cleared and the company is working to reduce its reliance on the region. Now, Spillane said the Tom Ford and Aveda parent is back to focusing on marketing and new products. Shares rose about 2% in Thursday premarket trading following the upgrade. Estee Lauder’s stock has bucked the market uptrend this year, slipping nearly 1% compared with the start of 2024. â Alex Harring 5:42 a.m.: Buy DraftKings following Wednesday’s drop, JPMorgan says Traders should snap up DraftKings after a tough session, according to JPMorgan. The sports-betting stock tumbled nearly 7% on Wednesday. But analyst Joseph Greff has an overweight rating and price target of $55, reflecting the potential for a 21.3% rally over Wednesday’s closing level. Wednesday’s decline was “largely attributable to multiple headlines simultaneously causing investor concerns,” Greff told clients. “Our view as well as general sentiment is that the decline in DKNG’s stock … largely seems overdone.” Greff said the proposed ban for college prop wagering isn’t considered a real headwind for margin expansion. That’s especially true given the low mix and when considering that many states already have some form of restriction on collegiate betting, he added. And Greff said DraftKings and competitor FanDuel can actually benefit from any increases to regulations on promotions or advertising. He said the pair could actually see higher margins if this happens. Finally, he acknowledged that a New Jersey bill to raise taxes on gaming revenue could cause headwinds. But Greff said the company has enough levers to keep margins strong, even if the legislation passes. Despite Wednesday’s tumble, shares are still up more than 28% this year. â Alex Harring 5:37 a.m.: HSBC upgrades Allstate Allstate shares are poised to build on their strong start to 2024, according to HSBC. Analyst Vikram Gandhi upgraded the insurance stock to buy from hold, raising his price target to $190 from $158. The new forecast implies upside of 11.9% from Wednesday’s close. Allstate has outperformed year to date, surging 21.3% in that time, while the S & P 500 is up 10%. ALL .SPX YTD mountain ALL vs SPX year to date “The US personal lines space may be hitting a sweet spot as continuing rate momentum coupled with decelerating inflationary trends implies scope for strong margin expansion over the next couple of years,” Gandhi wrote. “We see much improved prospects for a turnaround in its underwriting profitability, driven by a combination of decisive management actions, and a more conducive regulatory environment.” 5:37 a.m.: Wells Fargo raises price target for ‘Goliath’ Bank of America Wells Fargo sees more room to run for Bank of America shares after a strong start to the year. Analyst Mike Mayo raised his price target for the bank stock by $4 to $44, implying a 16.4% upside over Wednesday’s close. He has an overweight rating on the stock. Mayo said it’s one of the “best positioned” large-cap banks when looking at deposits, costs management, credit quality or reputation. It’s also a technology leader in the sector, he said, which can help it expand deposit share and prove elite operating leverage. “Overall, BAC is a Goliath at a time when Goliath is winning,” Mayo wrote. Mayo also raised expectations for first quarter per-share earnings by 1 cent to 74 cents and by 5 cents for the whole year to $3.15. That move is largely tied to better models for investment banking and trading, he said. The analyst’s call comes amid a period of outperformance, with shares up more than 12% since the start of 2024. â Alex Harring
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