Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades for Meta, Charles Schwab, Albemarle, and Gilead Sciences.
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Meta upgraded to Buy on positive revenue picture
Loop Capital upgraded Meta Platforms (NASDAQ:META) to Buy from Hold with a Street high price target of $320.00, as InvestingPro reported in real time.
While noting that shares are up 44% year-to-date on expense reductions, the firm said its upgrade move is underpinned by an increasingly positive stance on the revenue picture, with three headwinds to revenue cycling through and setting up to become tailwinds: Apple ad tracking changes, foreign exchange and transition to Reels.
Shares gained more than 2% yesterday.
Charles Schwab shares gain on Raymond James upgrade
Charles Schwab (NYSE:SCHW) shares rose more than 4% yesterday after Raymond James upgraded the company to Outperform from Market Perform, establishing a $63 target price.
According to the firm, recent data suggests that client cash sorting at Schwab is tapering, which should stabilize the balance sheet and net interest margin in the second half of 2023.
Although stricter regulations may pose a challenge, the firm believes the impact on Schwab's earnings power will be relatively limited. While elevated cash sorting highlights the interest rate risk in their business model, Schwab has low credit risk and a strong growth story, unaffected by recent macro events. Raymond James anticipates potential P/E multiple re-rating once EPS estimates stabilize.
2 more upgrades
Baird upgraded Albemarle (NYSE:ALB) to Outperform from Neutral and raised its price target to $288.00 from $222.00, noting it sees upside to estimates from any increase in lithium pricing, potential tailwinds from the IRA, and the growing demand for lithium.
Shares gained more than 4% yesterday.
BMO Capital upgraded Gilead Sciences (NASDAQ:GILD) to Outperform from Market Perform and raised its price target to $100.00 from $90, noting it believes the company is a best-in-class cell therapy franchise supported by strong manufacturing capabilities.
Among the reasons for the upgrade, the firm also mentioned an improving solid tumor oncology business, anchored by Trodelvy, and durable growth anchored by the HIV/Virology business.
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