5 big analyst picks: Jack Daniel's maker upgraded 2 notches at Morgan Stanley
Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: a buy initiation at Madison Square Garden Entertainment , and upgrades at Cognizant, VTEX, and Shift4 Payments.
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On Wednesday Morgan Stanley upped Jack Daniel's maker Brown Forman (NYSE:BFb) by two notches — to Overweight from Underweight — with a new BFb price target of $75, up $9 from the prior one.
The analysts said it was previously concerned about the spirits company's «limited prior visibility around gross margin recovery,» as well as macro concerns about US spirits growth and BFb shares' «full valuation.»
But, they wrote, «With gross margins now turning from a headwind to a tailwind, and concerns over industry growth likely to dissipate, we expect the stock to appreciate» as investors refocus on the company's «robust» long-term expected revenue growth of 5% to 7% and high-single-digits growth profile for its partnership with spirits glass maker O-I.
And with an improving macro picture for spirits prices, Morgan Stanley added, «We now have significantly greater visibility around GM recovery over the next 12-24 months.» It also called BFb's relative valuation «compelling» even as its «absolute valuation is rarely cheap.»
On Tuesday after the bell, BofA Securities initiated coverage on Madison Square Garden Entertainment Corp (NYSE:MSGE) with a Buy rating and a price target of $41.00, as reported in real time on InvestingPro. Shares gained more than 5% yesterday.
Following its separation from Sphere, BofA considers MSGE, which possesses renowned venues like Madison Square Garden and The Chicago Theatre, as an attractive opportunity to invest
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