Wall Street Analysts Share Key Picks and Upgrades Across Sectors | Image Source: Rawpixel.com
NEW YORK, 26 November 2024 – Wall Street analysts revealed important calls for a series of actions on Tuesday, highlighting strategic improvements, reductions and reaffirmation in all industries. Key companies such as Wells Fargo, UBS, HSBC and Evercore ISI provided information on companies from chemical manufacturers to technology giants, reflecting changing market dynamics and growth forecasts.
Wells Fargo has updated Eastman Chemical with the same weight, citing the company’s resilience and the ability to generate a constant income per share (EPS) despite difficult macroeconomic conditions. ”We believe that EMN can continue to generate steady growth of the EPS in this difficult macro, with an attractive half cycle EBITDA in a recovery,” said the company. The call underlines optimism in the chemical sector’s ability to navigate uncertain markets.
In consumer goods, UBS updated Hanesbrands to buy to neutral, pointing towards the company’s continuous turn. Analysts highlighted the expectations of accelerating sales growth for organic products, increasing the EBIT margin and increasing the APS by 50% for fiscal year 2025. UBS also forecast a decrease in the net debt/EBITDA ratio from 4.3x to 3.0x in the third quarter of 2025, as well as a possible return of dividends within 12-18 months.
Meanwhile, HSBC reduced Goldman Sachs and Morgan Stanley to maintain the purchase, despite increasing their EPS estimates for both companies. Analysts expressed concern about the risk/reverence profile, saying: ”Today we are even more positive in the fundamental outlook and we are raising EPS estimates for SG and MS to integrate higher investment rates and asset and asset management, but risk/reward is less attractive.”
Attention was also paid to the technology and data sectors. Baird started covering Rambus as a superform, stressing its importance in the progress of the AI-led data centre. “Rambus technology and intellectual property technology are essential to increase the performance of data centres under the influence of AI, with market-leading solutions that address memory performance bottlenecks,” said Baird. The company sees Rambus as a key driver in the continued growth of AI and high-performance computing.
Evercore ISI updated Zoom to overcome online after the company reported strong quarterly profits. Analysts welcomed the operational implementation and expansion of the company’s product offerings, indicating long-term growth potential. In the energy sector, Citi improved Chevron to buy to neutral, citing an under-evaluation of its peers. “Although Chevron has bounced a little in the last two months, he has always substantially underestimated the ExxonMobil and SPX key pairs until 2024,” Citi said.
Among consumer-oriented businesses, Wells Fargo reiterated Starbucks as overweight and increased its price target to $115 per share. The company has highlighted possible strategic movements in China as a positive catalyst for the coffee giant. Similarly, Bernstein began the Royal Caribbean as a superform, crediting the cruise operator’s record margins and the return of capital generated by investments in large ships and private islands. In a different note, Barclays reiterated Apple as a low weight, warning about the possible fall of the current case of the Department of Justice against Google, which could affect Apple’s advertising revenues.
Finally, TD Cowen started Pinterest as a purchase, indicating the platform’s ability to boost user engagement and monetization. ” Pinterest is a research and visual discovery platform where users explore their interests, seek inspiration and navigate the items they may want to buy,” analysts say. This approach to improving user margins and growth highlights its potential as a centre for advertising and e-commerce.
Wall Street’s various assessments reflect a nuanced market perspective, with companies passing through a combination of macroeconomic pressures and industry-specific challenges. Investors continue to focus on strategic change, technological innovation and global growth trends as opportunities for analytical projects in key sectors.
About The Author
