Investing.com — A professional summary of the top takeaways from Wall Street analysts over the past week. Netflix downgrade; crocs And Etsy.upgrade lockheed martin .
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lockheed martin
what happened? On Monday, JPMorgan upgraded Lockheed Martin (NYSE:) to Overweight with a price target of $518.
What’s the full story? JPMorgan observes that Lockheed Martin has not kept up with the broader market, being flat year-to-date compared to an 8% market gain and down 5% over the past year compared to a market gain of 26%. are doing. The bank notes that macroeconomic factors such as slowing defense budget growth and political turmoil, as well as certain corporate issues that are making the defense sector less attractive as markets are energized by AI and other key sectors. It points out the combination.
Despite these headwinds, the defense industry recently received the required FY24 budget, allaying some concerns, with JPMorgan expecting additional funding to support defense initiatives in Ukraine, Israel, Taiwan and more are doing. Although political uncertainty is expected to continue, especially in an election year, heightened geopolitical risks highlight the importance of this sector. JP Morgan suggests that any change in market sentiment could favor defensive stocks, and that LMT is positioned as an important indicator and could benefit on a relative basis.
Overweight at JPMorgan means that the stock has exceeded the average total return of stocks in the research analyst’s or research analyst team’s coverage universe over the price target period indicated in this report. expected).
How has the stock reacted? Lockheed stock rose from $451.47 to $457.44 in premarket headlines, an increase of about 1.50%. Lockheed opened regular trading at $458.57 and closed at $453.08, an increase of 0.60%.
crocs
what happened? At 10:05 AM Tuesday, Williams Trading downgraded Crocs (NASDAQ:) to Hold with a price target of $125.
What’s the full story? Williams Trading downgraded Crocs from “buy” to “hold,” cut its forecast, and lowered its price target from $135 to $125. This decision follows a recent inspection that showed the Crocs business is operating as planned or slightly better than planned. However, the company’s checks also suggest that Haydude sales, while improving, especially for men, are not strong enough to generate year-over-year increases in 2024.
Additionally, Crocs announced that HEYDUDE President Rick Blackshaw will resign effective immediately. Terence Riley, current president of Stanley 1913 and former senior vice president and chief marketing officer of Crocs, has been named HEYDUDE’s new vice president and president, effective April 29. Although Riley has enjoyed success at Stanley and is integrated into the Crocs culture, Williams Trading believes it will take time for HEYDUDE to regain momentum. The company believes that it will be difficult for Crocs stock to perform well until HEYDUDE sales show sustainable growth.
A Hold on Williams Trading means that “the stock’s total return (price appreciation plus dividend yield) is expected to be 15% or more over the next 12-month investment period.”
How did the stock react? Crocs stock opened regular trading at $122.62. Stock prices rose and fell at 10am. After the downgrade, the stock price fell from $123.19 to $120.27. Crocs closed 2.17% lower at $120.68.
beyond
what happened? On Wednesday, Maxim initiated coverage of Beyond (NYSE:) at Buy with a price target of $50.
What’s the full story? Maxim’s optimistic outlook reflects the potential for Beyond to capitalize on key trends identified in Maxim’s industry report, “Consumer Internet: 24 Trends for 2024,” including international expansion, blockchain integration, and mobile technology adoption. Driven by gender.
The company recognizes that lower interest rates could boost the results of its household e-commerce segment, and will continue to monitor interest rate developments closely. Maxim’s endorsement reflects confidence in Beyond’s strategic positioning to capitalize on these evolving market dynamics and drive growth.
“Buy with Maxim” means that “there are fundamental metrics and/or identifiable catalysts that indicate the stock is expected to outperform its associated index over the next 12 months.”
How did the stock react? Beyond stock rose from $25.53 to $24.43 in pre-market headlines, an increase of about 3.52%. Beyond opened regular trading at $24.31 and closed at $23.86, an increase of 1.27%.
Etsy
what happened? On Thursday, Morgan Stanley downgraded Etsy (NASDAQ:) to Underweight with a $55 price target.
What’s the full story? Morgan Stanley acknowledges that Etsy has benefited greatly during the coronavirus era, maintaining approximately 165% growth in gross merchandise sales (GMS) since 2019. However, Morgan Stanley believes that Etsy is nearing market saturation, making it difficult to add new customer bases.
Since 2021, despite attracting 57 million new buyers and reactivating 51 million, Etsy’s core GMS is down 5% year-over-year, and total GMS from past buyers is It remains flat. Part of this decline was due to a 7% year-over-year decline in GMS per purchaser, impacted by a challenging macroeconomic environment for discretionary purchases. Morgan Stanley models an acceleration in GMS on the back of macro easing, but with fewer greenfield opportunities, GMS could see a compound annual growth rate (CAGR) of around 3% from 2023 to 2026. We expect it to remain at .
As a result, the bank’s 2025/2026 GMS forecast is expected to be below consensus. Given the expectation that the majority of GMS growth will be driven by marketing-driven buyer growth, the company believes there is an inherent trade-off between his GMS growth and profitability. . As a result, we find it difficult to imagine Etsy simultaneously driving significant growth and margin expansion for his GMS unless it can sustainably increase frequency.
Morgan Stanley Underweight means that the stock’s total return, on a risk-adjusted basis, is expected to be less than the average total return of the analyst’s industry (or industry team) coverage universe over the next two years. means “to”.
12-18 months. ”
How did the stock react? Etsy opened regular trading at $65.37 and ended near $67.15, down 0.27% from Wednesday’s close.
Netflix
what happened? On Friday, Canaccord downgraded Netflix (NASDAQ:) to Hold.
What’s the full story? Canaccord said Netflix’s revenue benefited from strong member additions from the expansion of its paid shared services. Profitability also exceeded plans. Looking ahead, second-quarter revenue is in line with expectations and operating profit guidance is ahead of consensus.
Netflix has revised its FY2024 revenue outlook to 13% to 15% year over year, slightly below the midpoint consensus, and raised its FY2024 operating margin outlook to 24% to 25%. Despite these mostly solid results and outlook, Canaccord sees limited ability to drive growth in the coming quarters. With the stock up about 90% in the past 12 months and up about 25% year-to-date, the brokerage suggested investors may be better off looking for upside potential elsewhere. has been downgraded to “hold”.
Hold on Canaccord means “the stock is expected to return between -10% and 10% over the next 12 months.”
How has the stock reacted? Netflix opened regular trading at $567.90 and closed at $555.04, down 9% from Thursday’s closing price.
