All the market-moving Wall Street chatter from Thursday
(This is CNBC Pro’s live coverage of Thursday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) An auto giant and a toymaker were among the biggest names being talked about by analysts on Thursday. Bernstein initiated Ford Motor with a buy rating, calling for more than 30% upside. Meanwhile, JPMorgan upgraded Hasbro to overweight from neutral and said the stock was poised to rise more than 20%. Check out the latest calls and chatter below. All times ET. 6:25 a.m.: Williams Trading downgrades the parent company of Supreme, Vans The outlook for VF Corp is about to get worse, according to Williams Trading. The financial firm downgraded shares of the apparel company to sell from its previous hold rating. VF’s portfolio includes brands such as Supreme, The North Face, Vans and Timberland. Analyst Sam Poser accompanied his downgrade by slashing his price target to $6 from $13, implying a more than 51% decline for the stock. Shares of VF have already plunged more than 34% this year. VFC YTD mountain VFC year to date The analyst justified his bearish stance on the stock through a slew of near-term obstacles. “After a big 4Q24 miss, no formal FY25 guidance, and ongoing weakness of Vans & Dickies on a global basis, The North Face in the Americas & EMEA, Timberland in the Americas, it’s clear the Reinvent transformation plan has a long way to go before it gets the core brands working again, and any optimism appears unfounded,” he wrote. The analyst added that even if the company manages to sell off some brands, more than $3.5 billion of debt will remain on its balance sheet. Additionally, it will take the company at least one year to realize any positive sales inflection. — Lisa Kailai Han 5:59 a.m.: RBC upgrades GoodRx to outperform on ‘significant growth opportunities’ GoodRx’s new initiatives could bolster its stock, according to RBC Capital Markets. The bank upgraded the prescription drug stock to an outperform rating from sector perform. Analyst Sean Dodge also lifted his price target to $10 from $8. This new forecast implies that shares could rise 39%. One catalyst for GoodRx are the “significant growth opportunities” that could potentially be provided by its manufacturer solutions and integrated savings program, the analyst wrote. “Recent indicators from other pharma-adjacent vendors point to an improving demand backdrop, and coupled with GDRX’s high-ROI offerings are expected to drive a 20-30% [compound annual growth rate] over the next 3-yrs … as it signs new brands and sells more solutions to existing ones,” Dodge said. GoodRx has also expanded into direct contracting its own prices with retailers such as Kroger, which should help drive higher revenues for the company. Additionally, Dodge noted that the company could see further upside from several early-stage investment areas including the GLP-1 space. Shares of GoodRx have already climbed 7% year to date. — Lisa Kailai Han 5:55 a.m.: Bernstein initiates Ford at an outperform rating Investors who don’t own Ford are missing out, according to Bernstein. The firm initiated the automobile manufacturer at an outperform rating. Analyst Daniel Roeska also set a price target of $16, implying a 33% upside from Wednesday’s close. Shares of Ford have slipped 1% this year, but Roeska didn’t let the stock’s underwhelming performance this year deter him from his long-term optimism. The company’s forays into the electric vehicle market could further bolster its stock, on top of its already strong pickup truck and large SUV business. “The iconic automaker continues to enjoy strong profits from its core markets and a policy driven investment cycle in the U.S,” he wrote. “While electric execution looms large, we see a clear path to significant operating leverage and ultimately profits for the company’s EV unit.” In the medium term, Roeska believes that operating leverage and a strong industrials cycle could offset pricing headwinds in various markets. With that in mind, he says that the upper range of Ford’s 2024 guidance could be in reach. Ultimately, the analyst expects Ford to narrow its 2024 guidance, which could meaningful propel the stock higher. — Lisa Kailai Han 5:55 a.m.: JPMorgan upgrades Hasbro Don’t expect Hasbro’s momentum to slow in the near future, according to JPMorgan. The bank upgraded shares of the toymaker to overweight from neutral. It also raised its price target on shares to $74 from $61, implying upside of 22%. Analyst Christopher Horvers cited several reasons for the upgrade, including: “At a high level, our estimates remain ahead of the Street as we believe consensus cost efficiency and digital gaming forecasts remain too low while both should ramp into 2H24/1H25;” “Despite our view of some moderation in [point of sale] trends since the toy names reported, we believe the industry is positioned for better growth this year despite a shortened holiday season as green shoots in low ticket/short replacement cycle categories continue to sprout while these retailers … pivot towards driving traffic around events.” Hasbro shares have soared 18% in 2024 after losing 16% in last year. HAS YTD mountain HAS year to date — Fred Imbert
- Business
