Street Calls of the Week: An Apple a Day...
Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week: upgrades for Futu, Apple, and IBM; downgrades for Boeing.
InvestingPro subscribers always get first dibs on market-moving rating changes.
What happened? On Tuesday, Wells Fargo downgraded Boeing Co (NYSE:BA) to Equal-weight with a $225 price target.
What’s the full story? Wells Fargo is optimistic about BA’s long-term prospects, as it sees strong demand for its aircraft in the mid-2020s. However, analysts warn that BA faces regulatory challenges in the near term, which could affect its deliveries, certifications, and China market.
Wells Fargo also noted that BA’s valuation is very high, even after the recent selloff, and that it depends on its cash flow resilience amid regulatory pressures.
Equal-weight at Wells Fargo means «Total return on stock expected to be -10% to +10% over the next 12 months. HOLD.»
How did the stock react? Boeing’s equity traded down on the premarket headlines from $217 to $212, a loss of 2.66%. Boeing opened the regular session at $210.23 and closed at $200.52, a loss of 7.89% since Friday’s close.
What happened? On Wednesday, JPMorgan upgraded Futu Holdings Ltd (NASDAQ:FUTU) to Overweight with a $64 price target.
What’s the full story? JPMorgan notes Futu’s share price has fallen by 25% in the past two months, underperforming the S&P 500. The analysts attribute the share price weakness to a moderate miss on 3Q23 results and downside risk on net interest income (NII, ~55% of revenue in 9M23) on the back of rate cut expectations. However, they believe the concerns are overdone, as only half of NII is rate sensitive, and downside on NII will be compensated by higher trading volume.
Additionally, JPMorgan sees
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