By Davit Kirakosyan
Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Roku, Wayfair, and Charter Communications , and an Outperform initiation at Ralph Lauren.
Roku upgraded to Hold
CFRA upgraded Roku (NASDAQ:ROKU) to Hold from Sell and raised its price target to $75.00 from $65.00. As a result, shares rose more than 1% pre-market today.
ROKU's share price enjoys a risk-on view to its streaming operating system given the sizable market opportunity, as TV viewing shifts from linear networks to streaming.
CFRA’s revenue projections are $3.38 billion for 2023 and $3.9B for 2024, with estimated EBITDA of -$175 million and +$75M for the respective years.
The firm emphasized that achieving lower net operating losses in 2024 will be crucial in determining whether investors believe Roku has a viable business model to capture a significant share of the video streaming market.
Wayfair gains following Bernstein upgrade
Wayfair (NYSE:W) shares gained more than 2% pre-market today after Bernstein upgraded the company to Market Perform from Underperform and raised its price target to $65.00 from $60.00, as reported in real-time on InvestingPro.
The firm’s decision is based on improving revenue growth and margin commentary. “The stock has had a strong YTD run, and we see further upside potential over the next few quarters with room for positive EBITDA revisions,” noted Bernstein.
Two more analyst picks
Raymond James initiated coverage on Ralph Lauren (NYSE: NYSE:RL) with an Outperform rating and a price target of $135.00. Shares rose nearly 1% pre-market today.
The firm noted that Ralph Lauren has made significant improvements, enhancing its brand, optimizing wholesale distribution, strengthening its direct-to-consumer business, and boosting gross profit margins.
"From a stronger base, we see levers for moderate revenue growth on higher AUR (average unit retail, one of its biggest drivers in recent years) and unit volume from Asia, key cities globally, and under-penetrated categories,” mentioned Raymond James.
Charter Communications (NASDAQ:CHTR) shares rose more than 1% pre-market today after Wells Fargo upgraded the company to Overweight from Equal Weight and raised its price target to $550.00 from $450.00.
Our '24E/'25E EBITDA is +1%/+2% vs Street, and we think EBITDA accel will drive multiple expansion as CHTR will have more capacity to increase stock repurchases.
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