Fiverr pops on fresh buy rating: 5 big analyst picks
Investing.com -- Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: Buy initiations at Fiverr and CDW, and upgrades at PG&E, Warner Music Group , and LyondellBasell Industries.
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UBS starts Fiverr at Buy
UBS on Wednesday initiated coverage on Fiverr (NYSE: FVRR) with a Buy rating and a price target of $33.
The analysts say they see "significant upside from current share prices" for the online freelance marketplace, saying the upgrade comes partly because the company's "volumes lead overall job listings by 2 or more quarters, and job listings have started stabilizing."
UBS added that "expectations are low" for the company and that they "see scope for expectations and multiples to trend up as the outlook firms up in 2024.
The upgrade closely follows Roth/MKM's upgrade of the shares on Tuesday.
Fiverr stock was up 1.7% to $24.58 in recent trading.
CDW started with a Buy rating at UBS
UBS initiated coverage on CDW (NASDAQ:CDW) with a Buy rating and a price target of $237.00, as reported in real-time on InvestingPro.
The firm expects CDW to deliver an organic revenue CAGR of at least 6% over the next several years and an earnings per share CAGR of at least 10%. UBS also thinks the company is likely to pursue acquisitions or increase buybacks.
CDW's de-levered balance sheet post the Sirius Computer acquisition and strong free cash flow generation create optionality as the company is likely to pursue incremental accretive transactions targeting faster growth solutions, or allocate an incremental $300-$400M (1%-2%) towards buybacks not reflected in our CY24 and CY25 EPS forecasts.
Warner Music earns an upgrade at UBS
UBS upgraded Warner Music Group (NASDAQ:WMG) to Buy from Neutral and raised its price target to $37.00 from $34.00.
UBS sees the company as a long-term “beneficiary of secular industry trends in music and see the recent pullback as a buying opportunity.”
The analysts expect that recent price hikes by digital service providers like Spotify (NYSE:SPOT), YouTube, and Deezer - as well as new avenues for monetization arising from emerging platforms (including the renewed TikTok deal) and an increasing share of the streaming market - will contribute to positive outcomes for the company, potentially exceeding the market's expectations.
LyondellBasell Industries receives two upgrades
LyondellBasell Industries (NYSE:LYB) picked up two upgrades on Tuesday: Citi upped the company to Buy from Neutral and raised its price target to $106.00 from $104, and KeyBanc raised the company to Sector Weight from Underweight.
For Citi, the upgrade was driven by expectations of improving demand, higher exports, and supply disruptions in North America.
The analysts added:
"Additionally, the run-up in crude has created an asymmetric risk/reward at current share prices and recent export strength in PE has led to two consecutive 3c/lb M/M price increases. We think PE prices support stronger NA producer margins in 2024."
PG&E raised to Buy
CFRA upgraded PG&E (NYSE:PCG) to Buy from Hold on Tuesday with a price target of $18.00 (from $19.00).
The company is set to report its Q3/23 earnings on Nov 8. Street estimates stand at $0.36 for EPS and $5.89 billion for revenues.
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