5 Huge Analyst Calls: Yelp surges on Goldman buy rating; Carvana slashed
Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week: upgrades at Yelp, Carnival, Cisco, and Harley-Davidson, and a downgrade for Carvana.
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What happened? On Monday, Goldman Sachs upgraded Yelp (NYSE:YELP) to Buy with a $47 price target
What’s the full story? Yelp received a Buy rating at Goldman and a higher price target of $47, as the analyst argues the online review platform offers more upside potential at current levels.
Goldman believes Yelp can maintain high revenue growth in the next few years, thanks to a favorable local advertising market, improved ad technology, and new revenue streams. The analyst also believes Yelp can expand its margins by increasing its ad prices and controlling its costs.
Moreover, YELP can boost its earnings by buying back more shares. Despite the stock's strong performance this year, it is still undervalued compared with its peers.
A Buy at Goldman is described as follows:
Analysts recommend stocks as Buys… for inclusion on various regional Investment Lists. Being assigned a Buy… on an Investment List is determined by a stock's total return potential relative to its coverage universe.
How did the stock react? Yelp shares spiked on the upgrade from a low $38 handle in premarket trading, opening the regular session at $40 and ending the day at $42.02 — up just over 10% from the prior close.
What happened? On Tuesday, Argus upgraded Carnival Corp (NYSE:CCL) to Buy with a $21 price target.
What’s the full story? Carnival Corporation (CCL) has been upgraded to Buy from Hold at Argus based on its increased marketing spending, improved liquidity, and efforts to
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