Many analysts on Wall Street have been buzzing about some major upgrades and positive forecasts for several companies. KeyBanc upgraded Warner Bros. Discovery to overweight, with a price target that implies more than a 35% upside. At the same time, HSBC raised its rating on 3M to buy, forecasting a return to growth for the conglomerate.
Mizuho Securities upgraded Squarespace to buy from neutral, citing the company’s potential to surpass Wall Street growth estimates. The firm’s managing director, Siti Panigrahi, believes Squarespace has several growth opportunities that are being overlooked by most investors. The upgraded price target of $50 per share implies nearly 36% upside from the previous close.
Citi upgraded Cheesecake Factory to buy, pointing to the restaurant chain’s increasingly derisked unit growth outlook and stabilized labor environment. Analyst Jon Tower sees significant upside potential for the stock, as reflected in the increased price target of $47 per share, which implies more than a 30% upside.
TD Cowen upgraded Dutch Bros to buy, highlighting the company’s attractive risk-to-reward profile. Analyst Andrew M. Charles believes that Dutch Bros is well-positioned to have a successful year in 2024, especially with its focus on innovation and a more targeted loyalty program. The firm’s forecast suggests more than a 40% upside from the previous close.
Stifel downgraded Planet Fitness to hold from buy, despite the gym franchise’s first-quarter earnings beat. Analyst Chris O’Cull expressed concerns about the company’s pace of change needed to support franchisee development and the volatility in sales and earnings. The lowered price target of $70 per share implies only about a 7% upside from the previous close.
HSBC’s Positive Outlook on 3M
HSBC upgraded 3M to buy, foreseeing a return to growth driven by an improving macroeconomic backdrop. Analyst Wesley Brooks believes that 3M is a quality company with significant potential for growth and margin gains following the recent spin-off of its health care component. The increased price target of $115 per share reflects an 18% upside from the previous close.
KeyBanc upgraded Warner Bros. Discovery to overweight, anticipating that the media giant’s tough times could soon come to an end. Analyst Brandon Nispel established a price target of $11, signaling a nearly 37% upside potential. The company’s struggles in 2024, including a larger-than-expected loss in the first quarter, have not deterred KeyBanc’s positive outlook.
The analyst calls and Wall Street chatter on Friday reflect a mix of optimism and caution. While some companies are being upgraded with bullish forecasts, others are facing downgrades and concerns about their performance. Investors may want to consider these varying viewpoints and conduct their own due diligence before making any investment decisions based on analyst recommendations.