4 big analyst picks: Restaurant Brands a new Buy at JPMorgan, AppLovin upgraded
Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: Initiation at Restaurant Brands, and upgrades at AppLovin, Aramark, and Insulet.
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JPMorgan initiated coverage on Restaurant Brands International (NYSE:QSR) with an Overweight rating and a price target of $82.00, as reported in real-time on InvestingPro.
According to JPMorgan, the company’s historical approach of employing zero-based budgeting had previously limited spending on support, which potentially led to underinvestment not only in capital expenditures but also in operational expenditures.
However, there seems to be a notable change in the company's business, particularly with the appointment of former Domino's CEO Patrick Doyle and other executives. According to JPMorgan, a focus on improving unit economics is expected to have positive effects on both existing and new store performance visibility. The growth is anticipated to come from the international operations of Burger King (BK) and Tim Hortons (TH), along with global expansion for Popeyes, while the domestic BK and TH unit counts achieve stability.
AppLovin (NASDAQ:APP) shares surged more than 4% pre-market today after Jefferies upgraded the company to Buy from Hold and raised its price target to $50.00 from $20.00.
The rating change was based on several factors, including increased confidence in AppLovin's ability to capture a larger market share and set prices effectively within its mobile ad tech segment, a more optimistic software growth outlook for the near and medium term, signs of stabilization in the company’s mobile game segment, and potential opportunities in adjacent
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