A banner day for Pinterest; IBM picks up an upgrade: 5 big analyst picks
Investing.com -- Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: an Outperform initiation for IBM, and upgrades for Pinterest, Royal Caribbean , Carnival, and Methanex.
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Pinterest gets Buy rating at Citi after analyst day
Pinterest (NYSE:PINS) was raised to Buy/High Risk from Neutral at Citi on Wednesday with a $36.00 price target, up from the prior $31.00.
The move came after Citi analysts attended the image sharing platform's analyst day, which gave them confidence in the ongoing turnaround there and in the shares' "positive" risk-reward.
Analysts wrote to clients that they were "incrementally confident that engagement can continue to ramp, that ads innovation and its full-funnel approach to advertising can deliver improving monetization trends, and that adj. EBITDA margins can expand going forward."
"Simply put," they added, "we believe Product investments over the past year+ are improving the user experience and we note greater relevance and personalization of content across the platform."
Pinterest shares closed 3.2% higher after the ebullient analyst day on Tuesday, and the stock was recently up another 3.9% in Wednesday's premarket to $27.24.
IBM started with Outperform at RBC Capital
RBC Capital initiated coverage on IBM (NYSE:IBM) with an Outperform rating and a price target of $188.00 early Wednesday morning, as reported in real-time on InvestingPro.
RBC said it is "optimistic on the competitive positioning and unique role" that the tech giant holds in the technology ecosystem. It believes that IBM's value proposition is best exemplified by its ability to facilitate efficient digital transformation through consulting and software.
The analysts also argue that IBM's software business is often misunderstood and undervalued, particularly in its contributions to hybrid environments, AI, and spend optimization.
Shares were rising significantly in earlier premarket trading, but more recently pulled back to a $0.44 rise at $146.96.
Royal Caribbean and Carnival raised at Truist on strong forward-looking trends
Truist Securities upgraded Royal Caribbean Cruises (NYSE:RCL) and Carnival (NYSE:CCL) Tuesday, noting that "forward-looking trends for 2024 and 2025 look exceptionally strong" based on discussions with cruise-focused travel agencies and data analysis on future bookings and pricing.
Royal Caribbean Cruises was upgraded to Buy from Hold with a price target of $137.00 (from $115.00). Meanwhile, Carnival was raised to Hold from Sell with a price target of $17.00 (from $16.00).
The firm noted significant increases in industry-wide sales for 2024 and 2025 compared to 2019, with demand outpacing supply, suggesting a positive outlook for the sector.
Royal Caribbean climbed 2.5% to $98.32 Tuesday on the fresh Buy rating, although Carnival was up only marginally to $15.09.
Methanex gains on Raymond James upgrade
Methanex (NASDAQ:MEOH) shares rose more than 5% Tuesday after Raymond James upgraded the company to Outperform from Market Perform and raised its price target to $60.00 from $50.00.
The firm said the firm is lifting the stock based on various factors, including methanol finding a floor and spot prices being poised to tighten.
"Spot methanol prices are on the rise after an 18-month protracted slide," wrote Raymond James to clients. "Spot prices are poised to tighten further given traditional demand-side factors (Brent prices, MTO op. rates, China stimulus) & near-term seasonal influences."
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