Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Nvidia, Avery Dennison, Fulcrum Therapeutics, and Louisiana-Pacific.
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Nvidia earns two upgrades, stock surges on blow-out results and guidance
Nvidia (NASDAQ:NVDA) received upgrades from two Wall Street firms in response to the company's release of Q2 results that exceeded expectations. Shares surged more than 8% premarket today.
Before the earnings release yesterday, Stifel upgraded the company to Buy from Hold and raised its price target to $600.00 from $440.00.
NVDA expectations have been steadily moving higher in recent weeks (we raised our estimates on August 8th) and the investor debate appears centered on supply rather than demand. We think results and guidance are less important than the investment cycle ahead.
Meanwhile, Exane BNP Paribas upgraded to Outperform from Neutral with a price target of $745.00 following blow-out results and guidance.
The company’s Q2 EPS came in at $2.70, better than the consensus estimate of $2.07. Revenue was $13.51 billion, beating the consensus of $11.13B. For Q3, the company expects revenue of $16B, significantly better than the consensus estimate of $12.61B. Furthermore, the company announced a new $25B share buyback plan.
Avery Dennison earns an upgrade at UBS, shares gain
UBS upgraded Avery Dennison (NYSE:AVY) to Buy from Neutral and raised its price target to $222.00 from $184.00, as reported in real-time on InvestingPro. As a result, shares gained more than 3% yesterday.
The firm noted that Avery’s stock price has mostly hovered between $160 and $190 for about two years, but it could move beyond this range driven by anticipated positive year-over-year earnings growth in Q4/23 and 2024, RFID sales turning back to over 20% growth in H2/23, and stabilization of Base Labels & Ticket/Tag businesses.
More upgrades
Fulcrum Therapeutics (NASDAQ:FULC) earned two upgrades after the U.S. Food and Drug Administration (FDA) lifted the clinical hold on the Investigational New Drug (IND) application for FTX-6058 for the potential treatment of sickle-cell disease (SCD). Shares surged nearly 12% yesterday, adding to a 38% gain on Tuesday.
H.C. Wainwright upgraded the company to Buy from Neutral with a price target of $14.00.
Our conviction is centered on the potential of positive news flow from ‘6058, slowly alleviating negative prior headwinds stemming from the FDA’s hold (risk of hematological malignancies) and high management turnover rate.
Meanwhile, Stifel upgraded the company to Buy from Hold and raised its price target to $11.00 from $4.00.
Louisiana-Pacific (NYSE:LPX) shares gained more than 3% yesterday after DA Davidson upgraded the company to Buy from Neutral with a price target of $76.00.
The firm believes that Louisiana-Pacific's recent weakness, which is attributed to the adjustment in short-term prospects for the Siding business, creates a compelling entry point.
We continue to believe the company can gain share with their SmartSide products over the medium-term, while a 2+ year expected timeline until the next Siding conversion project, moderating inflation, and the lapping of growth related headwinds leaves the company unencumbered to drive a recovery in margins.
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