By Davit Kirakosyan
Here is your Pro Recap of the biggest analyst picks and cuts you may have missed today: upgrades at Rivian Automotive, FedEx, United States Steel, Datadog, and downgrades at Toast and Chubb.
Rivian Automotive gains on Evercore upgrade
Rivian Automotive (NASDAQ:RIVN) shares surged more than 3% pre-market today after Evercore ISI upgraded the company to Outperform from In Line with a price target of $35.00, as reported in real-time on InvestingPro.
FedEx raised to Positive at Susquehanna
Susquehanna upgraded FedEx (NYSE:FDX) to Positive from Neutral and raised its price target to $315.00 from $225.00. Shares rose nearly 1% pre-market today.
"We view the long-term upside opportunity in FDX from cost rationalization and valuation re-rating as greater than near-term cyclical risk,” noted Susquehanna.
Last week, the stock was initiated at HSBC with a Buy rating and a price target of $330.00.
United States Steel earns an upgrade at Morgan Stanley
United States Steel (NYSE:X) shares rose more than 1% pre-market today after Morgan Stanley upgraded the company to Overweight from Equalweight and raised its price target to $40.00 from $25.00, and assigned it as its Top Pick on the expected value creation from the company's transformational investments.
“Our call is supported by the ongoing strategic review process to potentially sell assets/the company, which highlights the value of X's growth initiatives," mentioned Morgan Stanley.
The company is set to report its Q3/23 earnings results on Oct 25.
Datadog raised to Overweight at Piper Sandler
Piper Sandler upgraded Datadog (NASDAQ:DDOG) to Overweight from Neutral and raised its price target to $115.00 from $88.00. As a result, shares gained more than 2% pre-market today.
The analyst's rationale for the upgrade includes the belief that the cloud-related challenges affecting Datadog's performance have largely been addressed in recent quarters, with adjustments made to expectations following last quarter's guide down.
As we contemplate the current environment, broad signs of stabilization in infrastructure and DevOps software demand coupled with incremental opportunities around security and AI position DDOG to be a major beneficiary as things improve.
Two more downgrades
Toast (NYSE:TOST) shares fell nearly 2% pre-market today after Mizuho Securities downgraded the company to Neutral from Buy and cut its price target to $16.00 from $30.00.
We call out (1) GPV per location slowing faster than restaurant inflation, which could signal muted success in enterprise. (2) Increased reliance on TOST Capital adding risk late in the cycle. (3) Proprietary survey pointing to potential headwinds from looming student loan payments.
JPMorgan downgraded Chubb (NYSE:CB) to Neutral from Overweight with a price target of $250.00.
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