Deutsche Bank Upgrades Snap Stock to Buy, Anticipates 16% Gains
Deutsche Bank has raised its rating on Snap to buy from hold, with analysts predicting more than 16% gains for the social media stock going forward. The upgrade comes after a strong performance by Snap in 2023, which saw the stock rise by 89%. Analyst Benjamin Black cited several catalysts for the upgrade, including the incremental revenue generated by Snapchat+, the strong performance of the ad platform rebuild, the potential for a significant partnership with Amazon, and the growing contribution of inbound advertising from China. Deutsche Bank’s industry checks suggest that the ad-platform rebuild is complete and the new focus on down-funnel conversions is providing demonstrable improvement in advertiser return on ad spend. Snap shares were up 2.8% in premarket trading.
Oppenheimer Upgrades Coinbase, Citing Improving Fundamentals and Attractive Risk-to-Reward Skew
Oppenheimer has upgraded Coinbase to outperform from perform, with analysts pointing to several positive catalysts that could boost the performance of the cryptocurrency exchange. The firm initiated its price target at $160 per share, implying more than 32% upside from Thursday’s close. Analyst Owen Lau believes that the recent sell-off of Coinbase shares presents an attractive risk-to-reward skew for investors. Lau also highlights the potential approval of several spot bitcoin exchange traded funds as a positive catalyst for the stock. Lau further expressed confidence in Coinbase’s ability to come out victorious from its litigation with the U.S. Securities and Exchange Commission or have the case dismissed outright, which could further aid the company’s growth. Coinbase is currently down approximately 30% year-to-date.
Wells Fargo Names Popular a Top Pick, Expects Over 22% Upside for the Puerto Rican Bank Operator
Wells Fargo has named Puerto Rican bank operator Popular a top pick for 2024 after the company reported a fourth-quarter earnings beat. Analyst Timur Braziler reiterated an overweight rating on Popular and set a $105 per share price target, implying more than 22% upside moving forward for the stock. Braziler believes that the widespread tailwinds benefiting the Puerto Rican economy will greatly benefit Popular, given that the bank is the largest and most dominant player on the island. Popular stock has gained approximately 5% since the start of the year.
UBS Downgrades Humana, Cites Lack of Clarity over Margin Expansion
UBS has downgraded health insurance stock Humana to neutral from buy, citing the company’s volatile near-term results and an extended timeframe to recover margins. Analyst AJ Rice lowered the price target to $370 per share from $530, implying about 2% downside moving forward. Rice believes that Humana’s near-term results and management’s commentary on an extended time frame for recovery to normalized margins will lead the shares to trade at a mid-teens forward multiple. Despite some negative assumptions in the company’s 2024 outlook, Rice acknowledged that they could prove conservative but expressed a need for the market to regain confidence in Humana’s near-term forecasts.
Piper Sandler Downgrades U.S. Bancorp, Citing Broadening Favorable Dynamics Among Peers
Piper Sandler has downgraded U.S. Bancorp to neutral from overweight, believing that the bank’s favorable dynamics will broaden out to its peers and leave it in a less unique position. Analyst R. Scott Siefers lowered the price target to $46 per share from $47, indicating more than 7% upside moving forward. Siefers noted that while U.S. Bancorp currently trades at a deserved multiple premium compared to its peers, there are no significant differentiated factors that would cause the shares to outperform peers as they have in the past. Siefers remains optimistic about the stock but at a slower growth rate, highlighting the potential for mid-single digit fee growth this year due to growth in U.S. Bancorp’s diverse fee base and a flattish expense outlook.
Analyst comment
1. Deutsche Bank Upgrades Snap Stock to Buy, Anticipates 16% Gains: Positive news. The market is likely to respond positively to the upgrade, with an anticipated increase in demand for Snap stock and a potential 16% gain in its value.
2. Oppenheimer Upgrades Coinbase, Citing Improving Fundamentals and Attractive Risk-to-Reward Skew: Positive news. The upgrade and positive catalysts mentioned are expected to improve the performance of Coinbase, leading to a potential 32% upside in its stock value.
3. Wells Fargo Names Popular a Top Pick, Expects Over 22% Upside for the Puerto Rican Bank Operator: Positive news. The favorable outlook for the Puerto Rican economy, along with Popular’s dominant position, is expected to drive the stock’s value up by more than 22%.
4. UBS Downgrades Humana, Cites Lack of Clarity over Margin Expansion: Negative news. The downgrade and lack of clarity over margin expansion could lead to a decline in Humana’s stock value and a potential 2% downside moving forward.
5. Piper Sandler Downgrades U.S. Bancorp, Citing Broadening Favorable Dynamics Among Peers: Neutral news. While the downgrade may lead to a slight decrease in U.S. Bancorp’s stock value, the analyst remains optimistic about the stock, albeit at a slower growth rate.
