Upgrades and Downgrades by Wall Street analysts bullish on Lockheed Martin, Beyond while downgrading Netflix, Crocs
Lockheed Martin
JPMorgan Upgrades Lockheed Martin
- Upgraded to Overweight.
- Price target: $518..
JPMorgan’s Analysis of Lockheed Martin’s Performance
- Lockheed Martin has not kept pace with the broader market, falling 5% over the past year despite a 26% market increase.
- The bank attributed the decline in defense budget growth, political disturbances, and specific company issues to macroeconomic factors.
- Despite these challenges, the defense industry received the FY24 budget, easing concerns.
- JPMorgan anticipates additional funding for defense initiatives in Ukraine, Israel, Taiwan, and others.
- The bank suggests a shift in market sentiment could favor defense stocks, with Lockheed positioned as a key indicator.
- Lockheed stock traded higher on premarket headlines, gaining around 1.50%.
Crocs
Williams Trading Downgrades Crocs
- Mid-morning: Hold
- Price target: $125
Williams Trading Downgrades Crocs Rating
- Crocs downgraded from ‘Buy’ to ‘Hold’ by Williams Trading.
- Estimates and price target reduced from $135 to $125.
- Sales of HEYDUDE, improving in men’s, not robust enough for a year-on-year increase in 2024.
- HEYDUDE President, Rick Blackshaw, stepping down.
- Terence Reilly appointed as new EVP & President of HEYDUDE.
- Williams Trading sees it challenging for HEYDUDE to regain momentum.
- Hold rating means stock’s total return expected to exceed more than 15% over the next 12-month investment horizon.
Beyond (NYSE:BYON)
Maxim Covers Beyond (NYSE:BYON)
- Initiated coverage at Buy.
- Targets $50 price.
Maxim’s Outlook on Beyond
- Maxim’s optimistic outlook is driven by Beyond’s potential to leverage key trends in the “Consumer Internet: 24 Trends for 2024” report.
- The firm will monitor the interest rate landscape to see if lower rates could boost the home e-commerce sector.
- Maxim’s endorsement signifies confidence in Beyond’s strategic positioning to capitalize on market dynamics and drive growth.
- Beyond’s stock traded higher on premarket headlines, opening at $24.31 and closing at $23.86, a 1.27% gain.
Etsy
Morgan Stanley Downgrades Etsy
- Etsy downgraded to Underweight.
- Price target: $55
Morgan Stanley’s Analysis of Etsy’s GMS Growth
- Etsy has maintained a 165% growth in GMS since 2019, but is nearing market saturation.
- Despite attracting 57 million new buyers and reactivating 51 million since 2021, Etsy’s core GMS has declined by 5% year-over-year.
- The decline is partly due to a 7% year-on-year decrease in GMS per buyer, impacted by a tough macroeconomic environment.
- Morgan Stanley expects GMS to reach a CAGR of approximately 3% from 2023 to 2026 due to diminishing greenfield opportunity.
- The bank’s 2025/2026 GMS estimates fall below consensus due to the trade-off between GMS growth and profitability.
- The stock’s total return is expected to be below the average total return of the analyst’s industry coverage universe over the next 12-18 months.
Netflix
Netflix Downgraded by Canaccord
- Netflix downgraded to Hold.
Netflix’s Q2 Revenue and Profitability Report
- Netflix’s revenue boosted by member additions and expanded paid sharing offering.
- Profitability outperformed guidance.
- Q2 revenue aligns with expectations, while operating income guidance surpasses consensus.
- FY24 revenue guidance of 13-15% year-on-year, slightly below consensus.
- FY24 operating margin guidance increased to 25% from 24%.
- Canaccord sees limited growth catalysts for the next few quarters.
- Stock downgraded to ‘Hold’ due to potential upside.
- Stock closed 9% lower than Thursday’s close.
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