Upgrades and Downgrades by Wall Street analysts; analysts have upgraded Intel, Robinhood, and Boston Beer, while downgrading SunPower.
MasterCard
Piper Sandler Covers MasterCard
- Initiated coverage at Overweight.
- Sets $531 price target.
Piper’s Mastercard Revenue Forecast
- Mastercard projected to achieve a revenue growth of 11.0% this fiscal year and 12.7% in FY25.
- The Payment Network sector is expected to see a 9.5% increase in revenue this year and a 13.5% surge in FY25.
- Value-added Services and Solutions are expected to grow by 13.7% in FY24 and 11.5% in FY25.
- The company’s transaction volume stands at $9 trillion annually, with a Total Addressable Market exceeding $250 trillion across various revenue channels.
- Piper anticipates a margin expansion trajectory of 20 basis points in FY24 and 80 bps in FY25.
Micron Stock Reaction:
- Opened regular session at $288.32.
- Closed at $284.78, 0.34% gain from prior day.
Boston Beer
Jefferies Upgrades Boston Beer
- Upgraded to Buy.
- Targeted $360 price.
Jefferies’ Outlook on Flavored Malt Beverages and RTD Products
- Expected growth of 4-5% in Flavored Malt Beverages and RTD products.
- Hard Teas emerging as dominant category, with Twisted Tea leading the charge.
- Truly experiencing market share losses, while Boston Beer’s cider and beer portfolios also facing decline.
- Strong performance of Twisted Tea in flavored malt beverage segment providing cushion against declines.
- Volume deleverage across seltzer, beer, and cider categories contributing to delayed recovery in Gross Margin percentage.
Boston Beer Stock Reaction
- Opened regular session at $288.32.
- Closed at $284.78, 0.34% gain from prior day.
SunPower
Wolfe Research Downgrades SunPower
- Downgraded to Underperform.
- Sets $2 price target.
SunPower Stock Analysis
- SunPower’s stock surged approximately 100% week-to-date due to a significant short squeeze.
- The company’s high short interest of around 95% caught retail investors’ attention, leading to 65% of the float being traded on Tuesday.
- SPWR’s 1Q24 10-Q filing was delayed due to internal controls issues and past financial misstatements.
- Wolfe Research remains optimistic about the home solar market, buoyed by incentives like the Inflation Reduction Act and rising utility bills.
- SPWR’s business strategy provides clearer financials and less exposure to interest rate fluctuations.
- Challenges include lack of contracted revenue or cash flow base, slowing residential sales since 2023, potential need for additional capital in 2024, and ongoing search for a new CEO.
SunPower Stock Reaction:
- Opened at $3.44
- Closed at $3.11
- Decline of 29.16% from previous day.
Intel
Wolfe Research Upgrades Intel to Peer Perform
- No price targets set for Peer Perform equities.
Wolfe Research’s Neutral Stand on Intel
- Wolfe Research maintains a cautious stance on Intel despite its 38% decline year-to-date.
- Intel underperforms the Semiconductor Index by approximately 60% YTD and 40% since the brokerage’s July initiation.
- The brokerage’s main concern is that growth in server CPU sales is insufficient to cover the substantial capital expenditures and depreciation associated with INTC’s ambitious 5N4Y manufacturing strategy.
- Wolfe’s team expects modest improvements in INTC’s Gross Margin in CY25 due to reduced startup costs and internalization of production processes.
- The company’s neutral stance at Peer Perform indicates the security is projected to perform in line with analyst’s industry coverage universe over the next 12 months.
Intel Stock Reaction:
- Opened at $31.61
- Closed at $32.04
- Gained 2.46% from previous day.
Robinhood
“BofA Doubles Robinhood Upgrade”
- Robinhood doubled to Buy
- Price target: $24
BofA Securities’ Entry Point Analysis
- Views current entry point as opposite of 2021’s Underperform entry point due to rising retail engagement, accelerated organic growth, positive operating leverage, and attractive valuation.
- Top brokers: Interactive Brokers (NASDAQ:IBKR) and Virtu Financial (NASDAQ:VIRT).
- Transitioning to a pure EBITDA valuation method, raising PO to $24.
- 2025 adjusted EBITDA forecast is more than 40% above consensus.
- Regulators may bring action against HOOD’s crypto practices in 2H24.
- Buy at BofA means stocks expected to have a total return of at least 10% and are the most attractive stocks in the coverage cluster.
Robinhood Stock Reaction:
- Opened at $18.94
- Closed at $20.08
- Gained 12.18% from prior day.
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