4 big analyst picks: Walmart has 'opportunity to extend market gains,' says Piper
Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Walmart, Datadog, and Neurocrine Biosciences, and initiations at Savers Value Village.
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Walmart (NYSE:WMT) shares rose more than 1% pre-market today after Piper Sandler upgraded the company to Overweight from Neutral and raised its price target to $210.00 from $145.00, as reported in real-time on InvestingPro.
The analyst said the company «has an opportunity to further extend market gains» as grocery inflation subsides, adding:
While we think intuitive logic dictates that WMT is well positioned during an inflationary period (trade down), we believe that a gradual intensification of promos augurs well for WMT given its sharp focus on price, and we raise our estimates accordingly.
Piper also cited the turnaround at Sam's Club, which saw the Walmart-owned warehouse club outperform competitor Costco (NASDAQ:COST for seven consecutive quarters, arguing that this «remains underappreciated.»
The company is set to report its Q2/24 earnings on Aug 17. Street estimates stand at $1.67 for EPS and $159.33 billion for revenues.
Shares were up 1.5% in recent premarket trading to $160.77.
Datadog (NASDAQ:DDOG) shares gained more than 3% pre-market today after Wolfe Research upgraded the company to Outperform from Peerperform with a price target of $140.00 ahead of the company’s upcoming Q2/23 earnings report, scheduled for August 8.
Initially, when Datadog was started as Peer Perform, Wolfe’s analysis indicated a potential deceleration in growth due to various factors such as macro, optimization challenges, competition, and go-to-market (GTM)
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