HP snags surprise double upgrade at BofA: 6 big analyst picks
Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at HP, Dow Chemical , Zscaler, Clorox, Fiverr International, and Warby Parker.
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BofA made a surprising call with their double upgrade of HP Inc. (NYSE:HPQ) — to Buy from the prior Underperform — after a near-25% drop since July after disappointing guidance on the delayed recovery in the PC space and word that Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) has started decreasing its HP stake in recent weeks.
The analysts also dramatically hiked the price target — by $8, to $33 per share.
That steep price drop constitutes part of BofA's thesis, as it believes the valuation is now attractive. The analysts also cited its expectation that the company will reach a bottom in free cash flow in fiscal 2023, and for the company to resume capital return activities as a result of this normalization.
They moreover expect HP to achieve growth in overall operating profit dollars, and the company's 4% dividend adds to the appeal for them.
Following the upgrade, HP shares were up 2% to $2.19 in recent trading Tuesday.
Fiverr International (NYSE:FVRR) shares gained more than 2% premarket Tuesday after Roth/MKM upgraded the company to Buy from Neutral with an unchanged price target of $33.00.
The analysts said their model remains «unchanged,» but that «we are incremental positive based on our recently completed freelancer buyer and seller survey, stock pullback leading to trough valuation levels, slightly supportive macro trends, and a tailwind from AI gigs and renewed Enterprise offerings.»
Shares were recently up 1.9% to $24.49.
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