Street Calls of the Week: Constellation Brands Makes Goldman Sachs' Top List
Investing.com — Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week: upgrades for Boeing, Spirit Aerosystems, and Constellation Brands; downgrades for Foot Locker and Airbnb.
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What happened? On Monday, Citi downgraded Foot Locker Inc (NYSE:FL) to Sell with a $18 price target.
What’s the full story? Citi has grown increasingly negative on Foot Locker citing weak sales and margins, high inventory levels, and a challenging macroeconomic environment.
The bank expects the company to report disappointing third-quarter earnings on November 29 (update: Foot Locker beat on earnings while narrowing guidance), and to struggle to execute a turnaround in fiscal year 2024. Citi also notes that Foot Locker’s reliance on Nike (NYSE:NKE) products reduces its control over its own destiny.
Citi believes that the stock is fairly valued at current levels, and that the risk/reward skews to the downside.
Sell at Citi means “Sell (3) for negative ETR” where ETR means Expected Total Return.
How did the stock react? Shares slid quickly at 5am from $23.20 to $22.59. Foot Locker opened the regular session at $22.20 and closed at $23.11, a loss of 0.90% since Friday's close.
What happened? On Tuesday, RBC Capital upgraded Boeing Co (NYSE:BA) to Outperform with a $275 price target.
What’s the full story? RBC joined the bullish bandwagon after another year of supply chain disruptions and lowered expectations, as they believe the set-up into 2024 is favorable for Boeing.
The analysts are maintaining their 2023 free cash
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