Goldman Sachs recently upgraded Toll Brothers, citing the company’s potential to benefit from the growing demand in the construction industry. Analyst Susan Maklari expressed confidence in Toll Brothers’ ability to outperform historical norms in terms of revenues, profitability, and returns. The firm raised its price target on the construction stock to $124 per share from $112, representing a 4% upside from the previous day’s closing price. The analyst also highlighted the short-term upside potential driven by customization and upgrades, as well as the company’s growth through the acquisition of lots from smaller private peers.
UBS expressed optimism regarding Newmont Corporation, a gold mining company, due to the projected rise in gold prices in the coming years. The firm upgraded Newmont to buy from neutral and increased its price target to $50 per share from $40, suggesting a potential 22% upside from the previous day’s close. Analyst Daniel Major pointed out the upside potential linked to an above-census forecast for gold prices, the stock’s underperformance thus far, and the benefits expected from divestments that will enhance cash returns. Major emphasized that post-divestments, Newmont will possess a portfolio consisting of large, long-life assets in low-risk jurisdictions and attractive brownfield growth projects.
UBS upgraded Best Buy, a major electronics and appliances retailer, to buy from neutral and raised its price target to $106 per share from $85. Analyst Michael Lasser believes that a potential upcoming appliance upgrade cycle and new product offerings could drive Best Buy’s stock performance. The convergence of these factors could lead to a recovery in the company’s sales in the latter half of 2024 and into 2025. Lasser highlighted that Best Buy tends to excel in market share during the early stages of a product cycle and that the retailer’s restructuring efforts could result in significant earnings growth as comparable sales improve.
Morgan Stanley took a slightly cautious approach towards Nike, a leading apparel giant, ahead of the company’s earnings report. The bank maintained its overweight rating on Nike but reduced its price target to $114 from $116. Analyst Alex Straton mentioned potential catalysts in the near term, as well as the likelihood of positive EPS revisions in the second half of 2025. However, Straton expressed concerns about Nike’s strategic direction and its long-term growth and profitability outlook. Nike shares have faced challenges in 2024, declining by 14% and ranking among the top five worst-performing stocks in the Dow Jones Industrial Average.
Analyst calls and Wall Street chatter provide valuable insights into the market sentiment towards various companies. While some firms like Goldman Sachs and UBS have displayed confidence in the growth prospects of companies such as Toll Brothers, Newmont, and Best Buy, others like Morgan Stanley have exhibited a more cautious approach towards stocks like Nike. Investors and traders can benefit from analyzing these calls and chatter to make informed decisions about their investment strategies.