Market Moves: Monday's Analyst Calls - Boeing Upgrade and Bank of America's Bullish Stance on a Prominent Sports Betting Stock

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Investing / Tuesday, 21 November 2023 16:24

"Market Watch: Monday's Analyst Calls and Wall Street Buzz"

Welcome to CNBC Pro's real-time coverage of Monday's analyst calls and the latest chatter on Wall Street. Refresh every 20-30 minutes for the most recent updates.

Among the notable calls today were upgrades for an aerospace giant and a renowned coffee chain. Deutsche Bank raised Boeing to a 'buy,' emphasizing robust free cash flow, while JPMorgan upgraded Dutch Bros to 'overweight,' spotlighting recent liquidity improvements. However, not all news was positive, as JPMorgan downgraded Krispy Kreme to 'neutral,' citing execution risks.

Bank of America made a strategic move by upgrading its rating on Penn Entertainment to 'buy,' anticipating potential gains from the ESPN Bet sportsbook. As the financial landscape continues to evolve, catch up on the latest analyst calls and discussions below.

9:15 a.m. ET: Chegg Faces Downgrade by Morgan Stanley on Weaker Fundamentals

Morgan Stanley downgraded Chegg to 'underweight' from 'equal weight,' with analyst Josh Baer citing a 40% rally since October's lows and noting weaker web traffic and download trends. The stock dropped 6% in premarket trading.

9:14 a.m. ET: SolarEdge and Enphase Face Significant Price Target Cuts by Morgan Stanley

Morgan Stanley dramatically reduced price targets for clean tech leaders SolarEdge and Enphase, reflecting lower earnings estimates in 2024 and 2025 due to decreased volume shipments.

8:46 a.m. ET: HSBC Initiates Caterpillar with a 'Hold' Rating

HSBC initiated Caterpillar with a 'hold' rating, citing potential profit decline in 2024 amid infrastructure-related challenges and emerging signs of a slowdown.

8:36 a.m. ET: B. Riley Slashes Price Target for The Children's Place

B. Riley downgraded The Children's Place to 'neutral' from 'buy,' sharply reducing the price target to $19 from $45, citing precarious gross margins and rising costs.

8:12 a.m. ET: Jefferies Upgrades Dorian to 'Buy'

Jefferies upgraded Dorian, anticipating positive outcomes from recent Panama Canal restrictions, tightening VLGC capacity, and raising charter rates.

8:09 a.m. ET: Melius Initiates Dell as 'Buy,' Labels It an 'Inexpensive' AI Play

Melius Research initiated Dell with a 'buy,' asserting its affordability as a play on the booming artificial intelligence sector, forecasting a 29% rise.

7:42 a.m. ET: UBS Remains Bullish on Ulta, Predicts Over 35% Rally

UBS maintains a buy rating on Ulta, expecting a potential 36.8% upside, as the beauty stock navigates potential short-term stress in third-quarter earnings.

7:40 a.m. ET: Compass Minerals Could See 52% Upside, According to JPMorgan

JPMorgan upgraded Compass Minerals to 'neutral' from 'underweight,' anticipating a 52% potential upside, considering the company's current market valuation and recent transaction multiples.

7:37 a.m. ET: JPMorgan Raises Forecast on Birkenstock, Expects Higher Revenue Growth

JPMorgan reiterates an 'overweight' rating on Birkenstock, raising the price target to $50, anticipating misunderstood potential in the company's 'under-promise/over-deliver' strategy.

7:33 a.m. ET: Wingstop Downgraded at Northcoast Research

Wingstop faces a downgrade to 'neutral' at Northcoast Research after a 67% rally in 2023, aligning share price with advancing sales and operational improvements.

7:31 a.m. ET: BMO Capital Markets Names Sherwin-Williams a Top Pick

BMO Capital Markets designates Sherwin-Williams as a top pick, citing reasonable upside to above-consensus estimates, higher margins, and a compelling risk/reward scenario.

7:07 a.m. ET: Bank of America Upgrades Penn Entertainment to 'Buy'

Penn Entertainment receives an upgrade to 'buy' from Bank of America, fueled by optimism surrounding the ESPN Bet sportsbook and prudent cost-saving measures.

6:53 a.m. ET: Deutsche Bank Upgrades Boeing, Foresees Boost from Free Cash Flow

Deutsche Bank upgrades Boeing to 'buy,' anticipating sustained improvement in free cash flow as aircraft deliveries accelerate, with a revised price target suggesting a 30% upside.

6:32 a.m. ET: BofA Upgrades Vale, Cites Higher Iron Ore Prices

Bank of America upgrades Vale, citing a more optimistic iron ore outlook and higher prices driving potential higher free cash flow and increased shareholder returns.

6:13 a.m. ET: ChargePoint Receives Downgrade from Bank of America and Wolfe Research

ChargePoint faces a downgrade from Bank of America and Wolfe Research, attributing the downgrade to guidance cuts and increased uncertainty ahead.

5:47 a.m. ET: Jefferies Upgrades Six Flags

Jefferies upgrades Six Flags Entertainment to 'buy,' foreseeing positive outcomes from its merger with Cedar Fair, scheduled to close next year.

5:42 a.m. ET: JPMorgan Downgrades Krispy Kreme

JPMorgan downgrades Krispy Kreme to 'neutral' from 'overweight,' citing execution issues despite global brand recognition.

5:42 a.m. ET: JPMorgan Lifts Dutch Bros to 'Overweight'

JPMorgan upgrades Dutch Bros to 'overweight,' noting recent liquidity improvements and a potential 26% upside, emphasizing the company's underappreciated strengths.

Stay tuned for more updates as the market unfolds throughout the day."

"In conclusion, today's dynamic market landscape reveals a diverse array of analyst calls, reflecting both positive and cautious sentiments across various industries. Upgrades for aerospace giant Boeing and coffee chain Dutch Bros signal optimism, while downgrades for Krispy Kreme and Chegg highlight concerns about execution and weaker fundamentals.

The evolving clean tech sector faces challenges, with SolarEdge and Enphase experiencing significant price target cuts due to lower earnings estimates. The outlook for companies like Caterpillar, The Children's Place, and Compass Minerals reflects the complexities of their respective markets.

Strategic moves by Bank of America, Jefferies, and JPMorgan underscore the importance of anticipating industry trends. The merger of Six Flags and Cedar Fair, as well as the upgrade of Penn Entertainment, demonstrate a proactive approach to navigating the evolving entertainment and gaming landscape.

As the market responds to economic shifts and global dynamics, investors are presented with a mix of opportunities and challenges. Staying informed about the latest analyst calls and market buzz is crucial for making well-informed investment decisions in this dynamic environment."