Investor Alert



2:51 a.m. Nov. 29, 2021 - By Tomi Kilgore
Hyatt Hotels stock jumps after J.P. Morgan turns bullish, saying discount to Marriott, Hilton is too wideShares of Hyatt Hotels Corp. bounced 2.5% in premarket trading Monday, after the hotel operator was upgraded at J.P. Morgan, citing improved valuation after the recent selloff. The stock dropped 5.7% on Friday, amid fears that the omicron variant of the COVID-19 virus would lead to reduced leisure travel, and has tumbled 14.6% since closing at a 21-month high of $91.50 on Nov. 5. Analyst Joseph Greff raised his rating to overweight after being at neutral for at least nearly three years, while raising his stock price target to $101 from $90. Greff said Hyatt's stock has underperformed its peers over the past year, but he thinks "this can turn around" as Hyatt migrates to "a less capital-intensive, more fee-generative and a more leisure-focused business" following the company's . "We think the current environment is ripe for [Hyatt] to optimize the value of its owned hotels, particularly leisure focused ones, and we don't see this changing in the near to medium term," Greff wrote in a note to clients. "Lastly, we look at [Hyatt's] relative valuation as attractive versus [Hilton] and [Marriott], and while we believe it should trade at some discount, we'd argue the discount is too wide." Hyatt's stock has gained 5.2% year to date through Friday, while shares of Marriott International Inc. have rallied 22.4% and Hilton Worldwide Holdings Inc. have advanced 11.8%. The S&P 500 has climbed 22.3% this year.
2:43 a.m. Nov. 18, 2021 - By Tomi Kilgore
Boeing's stock gets a boost after J.P. Morgan gets bullish againShares of Boeing Co. got a 1.6% boost in premarket trading Thursday, after the aerospace and defense contractor was upgraded at J.P. Morgan, with analyst Seth Seifman saying, "a deep breath and diving in." Seifman raised his rating to overweight, after downgrading it to neutral in March 2020. He raised his stock price target to $275 from $260. "With the market near a record, we like that BA has company-specific catalysts that should help, provided we avoid a recession or eternal COVID-19 waves," Seifman wrote in a note to clients. "[B]oeing's position at the center of global air travel offers confidence that it will recover financially over time and we believe risk-reward now skews favorably." He said China's certification of Boeing's 737 MAX planes is "critical," and recent reports suggest it is approaching. Another overhang is the 787 delivery halt, which Seifman said seems likely to persist in to the first quarter of 2022. Boeing's implied stock price gain would add about 24 points to the Dow Jones Industrial Average's price, while Dow futures gained 35 points, or 0.1%.
7:10 a.m. Nov. 17, 2021 - By Claudia Assis
Boeing stock 'lagging' the S&P, gets upgrade to buy from Wells FargoAnalysts at Wells Fargo raised their rating on Boeing Co. stock to the equivalent of buy, saying in a note Wednesday they see "a positive risk/reward balance with the stock lagging the S&P 500 by (about) 30% since its March high." Boeing stock likely benefits from China re-certificating the 337 Max, resumption of 787 deliveries, higher fuel prices driving more aircraft retirements, and easing international travel restrictions, the analysts said. Moreover, there's "limited downside" as Boeing is less susceptible to supply-chain disruptions given a large inventory of completed aircraft, they said. "(Boeing) is most levered to the post-COVID recovery among our coverage, and should outperform as air travel continues to normalize," they said. Shares of Boeing have gained nearly 6% this year, compared with gains of around 25% for the S&P 500 index.
10:01 a.m. Nov. 1, 2021 - By Emily Bary
TripAdvisor stock slips after double downgrade at BarclaysShares of TripAdvisor Inc. are down 1.3% in Monday afternoon trading after Barclays analyst Mario Lu downgraded the stock by two notches, to underweight from overweight. "[W]ith recovery in global travel effectively halted in 3Q21 as the Covid Delta variant emerged, we believe investors are shifting focus to longer term themes such as the continued shift to alternative accommodations and changing user behavior due to a more flexible work schedule, neither of which directly benefits TripAdvisor," Lu wrote. He also noted a change in consumer bookings behaviors, as he expects that social-media, online-travel agencies, and organic search will keep winning share versus metasearch-driven bookings. Finally, TripAdvisor recently announced changes to its Trip Plus program that could mean more "limited upside" from the initiative. TripAdvisor previously was looking to offer immediate discounts through the program but now it's switching to cash-back offers. "Because of this business model change and uncertainty in terms of how and what form travelers will receive the cashback, we have significantly reduced our top line expectations from Plus from $200mn+ to closer to $50mn by 2023 as we believe the lag in payment back to the travelers in this new offering will not be as enticing to travelers as it removes the no-brainer decision," Lu wrote. Shares have declined 14% over the past three months as the S&P 500 has risen about 5%.
10:01 a.m. Oct. 14, 2021 - By Tomi Kilgore
Avis stock falls after Morgan Stanley recommends selling, saying it's too early for the 'mega-fleet bull case'Shares of Avis Budget Group Inc. dropped 2.5% in afternoon trading Thursday, after Morgan Stanley analyst Billy Kovanis recommended investors sell, saying it's too early for investors to be betting on the "mega-fleet bull case." The stock has now lost 4.8% since it closed at a record $153.39 on Tuesday, but has still more than doubled (up 103.6%) over the past three months and rocketed 291.6% year to date, while the S&P 500 has advanced just 18.1% this year. Kovanis downgraded Avis to underweight, after cutting the rating to equal weight in March 2021. Although he raised his tock price target to $110 from $85, the new target still implied about 25% downside from current levels. He said he just doesn't buy that investor suddenly view car rental as a high return-on-invested-capital (ROIC) business in the long run, and that pricing, which has been boosted recently by increased travel and lack of supply, will be permanently higher. "Pricing may very well be higher for a year or two, but we don't see this as a 3-to-5 year phenomenon," Kovanis wrote in a note to clients. He added that rental car stocks are "notably cyclical," so that means, "what goes up, must come down."
3:37 a.m. Oct. 11, 2021 - By Tomi Kilgore
Southwest's stock slumps as analyst says canceled flights could add to cost pressures, hurt labor relationsShares of Southwest Airlines Co. slumped 2.9% in premarket trading Monday, to pace the declines among its air-carrier peers, after Southwest , which the company . Analyst Savanthi Syth said she expected only a "limited financial impact and no forward demand implications" given the setbacks happened during an off-peak period and weren't limited to Southwest, but she added that because the airline had already made capacity cuts to address operational reliability the recent setback "likely adds to the related unit cost pressure and may exacerbate strained labor union relations." Meanwhile, Syth reiterated the outperform rating she's had on the stock since November. Southwest's stock selloff comes as the U.S. Global Jets ETF slipped 0.6% in premarket trading, while futures for the S&P 500 gave up 0.3%. Among other air carriers, American Airlines Group Inc. shares eased 0.3%, Delta Air Lines Inc. declined 0.5% and United Airlines Holdings Inc. shed 0.4%.
4:03 a.m. Sept. 30, 2021 - By Ciara Linnane
Boeing and Spirit upgraded to outperform at Bernstein on expectations for recovery in air travelBernstein analysts upgraded Boeing Co. and Spirit Aerosystems Holdings Inc. to outperform on Wednesday and said they expect international traffic and aircraft demand to start to improve as COVID-19 vaccines begin to be administered in most major markets. "The story is not totally clean," a team led by Douglas S. Harned wrote in a note to clients. "Some countries (e.g. China, Vietnam, Australia) must fight against lockdown strategies that block travel when single cases arise. But, we now see paths for most major markets to reopen, with China the slowest, with its "zero tolerance" strategy and the Beijing Olympics coming in February." The analysts are expecting most major markets to get their vaccine programs running in the next six months to allow air travel to recover, barring the emergence of another new variant, which they do not expect. Boeing's stock price target was raised to $279 from $252, while Spirit's was lifted to $66 from $53. Boeing shares were up 2.3% premarket and have gained 4.7% in the year to date. The U.S. Global JETS ETF has gained 8% year-to-date, while the Dow Jones Industrial Average has gained 12%.
4:13 a.m. Sept. 24, 2021 - By Tomi Kilgore
Delta Airlines stock is a 'catalyst call buy' at Deutsche Bank, as recent underperformance should flip to outperformanceDeutsche Bank analyst Michael Linenberg has launched a "short-term catalyst call buy" on Delta Air Lines Inc.'s stock Friday, saying he believes the underperformance so far this year will flip to outperformance in the coming months. The stock has edged up 5.9% year to date through Thursday, while the NYSE Arca Airline Index has climbed 16.9% and the S&P 500 has advanced 18.5%. Linenberg said this underperformance has come despite Delta being one of the most leveraged to corporate and long-haul international travel, which he believes will start seeing better demand. And with the last few months of the year being good time to own the airline sector -- the airline seasonal trade has worked in 16 out of the past 20 years -- Linenberg believes "Delta will be a favored name among 'new money' investors given that it is viewed as one of the highest quality names in the sector." The stock was down 0.8% in premarket trading.
8:42 a.m. Sept. 16, 2021 - By Tomi Kilgore
American Express stock rises to pace the Dow's gainers after BofA backs away from bearish stanceShares of American Express Co. rose 0.8% in afternoon trading Thursday, enough to pace the Dow Jones Industrial Average gainers, after BofA Securities analyst Mihir Bhatia backed away from from his bearish view on the charge card and travel-related services company, citing a now "balanced" risk-reward profile. The stock has lost 4.6% since the end of July, while the SPDR Financial Select Sector ETF has gained 3.4% and the S&P 500 has tacked on 1.4%. Bhatia attributed the stock's recent underperformance to fears that the recent spike in COVID-19 cases would slow the economic recovery and hurt AmEx's billings. "However, at a conference appearance this week, [AmEX] noted that [quarter-to-date] total billings are up 3% vs. 2019 levels (an acceleration from -2% in 2Q)," Bhatia wrote in a research note. "This was better than feared." He added that while a slower recovery and higher corporate taxes are remain near-term risks, the company is likely to also benefit from increased travel spending, particularly by large businesses, in 2022.
9:20 a.m. July 22, 2021 - By Tomi Kilgore
Airbnb's stock extends bounce after BTIG analyst turns bullish, cites 'appealing' buying opportunityShares of Airbnb Inc. gained 0.6% in afternoon trading, putting them on track for a third-straight gain, after BTIG analyst Jake Fuller turned bullish on the home-rental company, saying the recent selloff has created an "appealing entry point" for a "best-in-breed" online travel agent (OTA). The stock has now bounced 6.2% since closing Monday at a seven-month low of $131.88, which was 39% below the Feb. 11 record close at $216.84. He raised his rating to buy, after being at neutral since Airbnb went public in December. "[Airbnb's stock] wasn't interesting to us >$200 in February, but at <$140 with revenue estimates up significantly...we see an opportunity to own a unique (few brands have become a verb/noun) and compelling (>90% of traffic direct) model," Fuller wrote in a note to clients. The FactSet consensus for 2021 revenue has increased to $5.29 billion from $4.69 billion at the end of February, and represents 57% growth from 2020. "We can't say how a COVID resurgence might impact travel, but can say that [Airbnb] is better situated than peers to deal with it," Fuller wrote. He noted that Airbnb's bookings fell less that its peers and have fully recovered to 2019 levels, which others are still below pre-pandemic levels. The stock has slipped 4.6% year to date, while the S&P 500 has gained 16.3%.
2:54 a.m. July 15, 2021 - By Tomi Kilgore
Delta Air Lines stock bounces off 5-month low after double upgrade at Raymond JamesShares of Delta Air Lines Inc. bounced 0.9% in premarket trading Thursday, after the air carrier was double upgraded by analyst Savanthi Syth at Raymond James, who said the stock was "too hard to ignore at current levels." The upgrade comes after the stock slumped 1.6% to close Wednesday at the lowest price since Feb. 3, as concerns over the pace of the travel recovery . Syth raised her rating two notches to strong buy, after being at market perform since November 2020. Her $58 stock price target implies a 43% gain from Wednesday's close of $40.68. "[T]he recent leg down in U.S. airlines shares may be more interest rate/inflation-related spillover to value, but we expect improving fundamentals to prevail particularly given our favorable view on business demand recovery," Syth wrote in a note to clients. She said that while other air carriers provide exposure to business demand recovery without the risk of further delays in international market reopenings, "we find [Delta's stock] too hard to ignore at current levels." The stock has dropped 13.1% over the past three months through Wednesday, while the U.S. Global Jets ETF has shed 12.7% and the S&P 500 has gained 4.9%.
7:25 a.m. July 6, 2021 - By Tomi Kilgore
American Express stock paces the Dow's winners after Goldman analyst turns bullishShares of American Express Co. rose 0.7% toward a record close in midday trading Tuesday, after Goldman Sachs analyst Ryan Nash turned bullish on the financial and travel services company, citing expectations of a "big pickup" in consumer spending. The stock was the biggest advancer among the three of 30 Dow Jones Industrial Average members gaining ground. Goldman's Nash upgraded AmEx to buy from neutral, as his $225 stock price target implied a near-33% gain from current levels. While AmEx (AXP) has laid out expectations to reach its original goals for 2020 in 2022, with the economy improving meaningfully and "a big pick-up in consumer spending" since AXP gave this guidance in January 2021, he believes the company is poised to exceed its original 2020 expectations of earnings per share of $8.85 to $9.25 by 2022, given accelerating consumer spending, improving small and medium business spending and benign credit. "In fact, we believe AXP has the potential to see ~$10.00 in EPS in 2022 and double-digit growth beyond then as the multi-year recovery in [travel and entertainment] as well as robust growth in goods and services makes up for 'lost ground' in 2020," Nash wrote in a note to clients. The stock's gain comes as the SPDR Financial Select Sector ETF slumped 1.7% in midday trading and the Dow dropped 367 points, or 1.1%. The stock last closed at a record of $169.45 on June 25.
5:24 a.m. May 14, 2021 - By Emily Bary
DoorDash, Airbnb stocks upgraded at Wells FargoWells Fargo analyst Brian Fitzgerald upgraded shares of Airbnb Inc. and DoorDash Inc. to overweight from equal weight Friday, following that he said showed momentum coming out of the pandemic. "Within our coverage group, we view ABNB as likely the strongest play on the future of remote and hybrid work," he wrote, while maintaining a $200 price target on Airbnb's stock. He was encouraged by momentum in urban regions, which represented 40% of nights booked in the latest quarter. In Fitzgerald's view, a rise in urban travel is "a shift back to one of Airbnb's power alleys." For DoorDash, he wrote that the company's beat-and-raise quarter "is large enough to offset the rotation to 'value' that has afflicted 'growth' stocks" so far this year. Upbeat indications included sequential and year-over-year increases in average order value among existing customers and a more than doubling of subscriptions to the company's DashPass product relative to a year earlier, he wrote. Fitzgerald raised his price target on DoorDash's stock to $170 from $165. Airbnb shares are up 2.2% in Friday morning trading, while DoorDash shares are up 14.8%.
3:00 a.m. April 23, 2021 - By Tomi Kilgore
American Airlines stock bounces after Raymond James analyst backs away from bearish stanceShares of American Airlines Group Inc. climbed 1.2% in premarket trading Friday, after analyst Savanthi Syth at Raymond James said she was no longer bearish on the air carrier, as the recent selloff has provided to a more-balanced risk-reward profile. Syth raised her rating to market perform, after being at underperform since November. The stock fell 4.5% on Thursday after , to mark the 12th decline in the past 13 sessions, a stretch in which the stock tumbled 17.2%. Over the same time, the U.S. Global Jets ETF had lost 8.3% while the S&P 500 gained 1.4%. "The healthy domestic/near-international recovery (particularly in markets where American is strong), funds from PSP2 and PSP3, as well as pension relief included with PSP3 have lowered risks in the near- to medium-term relative to our late-November downgrade of AAL," Syth wrote in a note to clients.
4:32 a.m. April 13, 2021 - By Emily Bary
Booking Holdings stands to benefit from 'meaningful infection' in travel, analyst says in upgradeWhile global travel is still depressed, Booking Holdings Inc. stands to benefit from a "meaningful inflection" upon a broad rollout of vaccination efforts, Jefferies analyst Brent Thill argued. He upgraded shares of Booking to buy from hold Tuesday, writing that the company is in a position to outperform in 2021 and 2022 given its diversified geographical revenue stream, relative low exposure to air fares, and high exposure to accommodations, which are recovering more quickly. Thill also likes the company's large alternative-accommodations business, which he says represents about 20% of its revenue or a greater percentage than Expedia Group Inc. generates from alternative accommodations. "Accommodations are likely to recover the fastest, and in fact alternative accommodations are probably already close to pre-COVID levels, with a majority of travelers opting for vacation rentals instead of hotels," Thill wrote. He raised his price target to $2,800 from $2,300 on the stock, which has risen 10.0% over the past three months as the S&P 500 has gained 8.3%.
2:25 a.m. April 5, 2021 - By Tomi Kilgore
JetBlue stock jumps after Raymond James upgrades to outperformShares of JetBlue Airways Corp. jumped 3.4% in premarket trading Monday, after Raymond James analyst Savanthi Syth upgraded the air carrier, citing earnings momentum and improving trends in its core markets, including the recovery in near-international. Syth raised her rating to outperform from market perform, and set a stock price target of $24, which was 17.8% above Thursday's closing price of $20.37. Syth noted that daily bookings accelerated from about $6 million in early March to $10 million to $12 million towards the end of the month, while the company needed to reach about $13 million to $15 million to reach operating cash flow breakeven. "Pent-up demand to beach destinations continues, with near-international (i.e., Mexico/Caribbean) recovering following the sharp but short-lived drop-off when the U.S. implemented testing for international arrivals on Jan 26," Syth wrote in a note to clients. JetBlue's stock has rallied 40.1% year to date through Thursday, while the U.S. Global Jets ETF has climbed 20.9% and the S&P 500 has gained 7.0%.
5:29 a.m. March 22, 2021 - By Emily Bary
Snap, Pinterest stocks get downgraded at Bank of AmericaBank of America analyst Justin Post downgraded shares of Snap Inc. and Pinterest Inc. to neutral from buy Monday, writing that while the two internet companies could continue to see strong growth, their stocks could fall out of favor as the economy recovers. Snap shares are off 5.8% in Monday morning trading while Pinterest shares are down 2.5%. "We continue to see Snap and Pinterest as strong secular growers, expect strong 1Q channel checks to aid stocks ahead of 1Q results, and anticipate acceleration in growth in 2Q, but we think investors may becoming increasingly concerned on tougher 2H comps, especially in context of a broader economy that should be accelerating," Post wrote. At the same time, he upgraded shares of Booking Holdings Inc. to buy from neutral, arguing that the company could be the top beneficiary of Europe's vaccine rollout by the third quarter, among the companies that he covers. He points to "several green shoots for U.S. travel" and an expectation that Europe and the rest of the world could kick off similar recovery paths. Booking shares are up 1.5% in Monday morning trading. They've gained 13% over the past three months as the S&P 500 has risen about 7%.
2:33 a.m. March 17, 2021 - By Tomi Kilgore
Virgin Galactic gets a bullish endorsement from Truist analyst, with the price target implying a 54% gainVirgin Galactic Holdings Inc. has a new top bull on Wall Street, after Truist analyst Michael Ciarmoli started coverage of the spaceflight company Wednesday with a buy rating and $50 stock price target. Ciarmoli's target is now the highest of the 10 analysts surveyed by FactSet, and well above the average target of $38.50. His target is 53.8% above Tuesday's stock closing price of $32.51. The stock fell 3.0% in premarket trading, after dropping 6.6% on Tuesday to snap a 5-day win streak. "We see several near-term catalysts for the shares as the company demonstrates its capabilities through a series of testing activities planned during 2021, and believe that once commercial operations commence (likely in our view in early 2022), demand will significantly exceed supply, providing the company with pricing leverage and enabling margin accretion as the company scales its operations," Ciarmoli wrote in a note to clients. "Ultimately we believe [Virgin Galactic] can capture at least 50% of the global space tourism [total available market (TAM)] by 2030." The stock has soared 156.8% over the past 12 months, while the S&P 500 has advanced 56.7%.
6:18 a.m. March 5, 2021 - By Claudia Assis
Boeing stock still has more upside, analysts says in upgrade to buy Analysts at Canaccord Genuity on Friday upgraded their rating on Boeing Co. stock to buy, increasing their price target to $275 from $200, based on the 737 Max return to service, improved outlook for travel, and as the market for wide-body, long-haul planes stabilizes, they said. "While the stock has had a significant move off its March 2020 lows, we see further upside," the analysts said. Shares of Boeing have lost 16% in the past 12 months, contrasting with gains around 24% for the S&P 500 index .
2:43 a.m. Feb. 22, 2021 - By Tomi Kilgore
Airline stocks rally, led by American Airlines, after Deutsche Bank's sector-wide upgrade to buyAirline stocks are set up for a broad rally, led by American Airlines Group Inc. shares, after Deutsche Bank analyst Michael Linenberg said it was time to buy into the sector as COVID-19 cases, hospitalizations and vaccination rates are all trending in the right direction. He upgraded nine U.S.-based airlines to buy from hold. "As our upgrade is a sector-wide call, we are of the view that all of our names could see material upside from current levels," Linenberg wrote in a note to clients. Among the biggest premarket gainers, shares of American Airlines shot up 5.8%, JetBlue Airways Corp. rallied 2.1%, Delta Air Lines Inc. rose 1.6%, Southwest Airlines Co. hiked up 1.3% and Alaska Air Group Inc. tacked on 1.2%. Meanwhile, United Airlines Holdings Inc. edged up 0.3%, after on Saturday. The U.S. Global Jets ETF climbed 1.4% ahead of the open, putting it on track to open at a one-year high, while futures for the S&P 500 fell 0.8%.
8:47 a.m. Feb. 19, 2021 - By Tomi Kilgore
Airline stock enjoy broad gains, with Jets ETF rallying to pre-COVID-19 pandemic levelsAirline stocks enjoyed broad gains Friday, with the U.S. Global Jets ETF rallying to levels not seen since before COVID-19 was declared a pandemic, amid hopes that the recovery could be stronger than anticipated. The Jets ETF surged 2.9% in afternoon trading toward the highest close since Feb. 27. Among the more-active airline stocks, United Airlines Holdings Inc. jumped 6.6% to lead the group, and American Airlines Group Inc. was next with a 5.1% rally toward the highest close since June 8. Delta Air Lines Inc.'s stock rose 3.5%, and was headed for the highest close since March 4. The stocks of JetBlue Airways Corp. hiked up 3.5% and Southwest Airlines Co. advanced 2.4%, with both headed for the highest closes since late February. The World Health Organization had . Separately, shares of travel services software and technology company, which supports airline operations, soared 14.4% toward a one-year high, . Among reasons for his upgrade, "the pent-up demand for travel could potentially drive faster recovery than prior recessions." The Jets ETF has has run up 18.1% over the past three months while the S&P 500 has gained 9.3%.
4:50 a.m. Feb. 19, 2021 - By Tomi Kilgore
Sabre stock surges toward a 1-year high, after Deutsche Bank analyst turns bullishShares of Sabre Corp. charged 8.7% higher, toward a one-year high, after Deutsche Bank analyst Ashish Sabadra turned bullish on the travel services software and technology company, citing optimism over the recently announced Google partnership and the post-COVID-19 recovery. Sabadra raised his rating to buy from hold, and boosted his stock price target to $17, which implies a 23% gain from current levels, from $12. He said Sabre's "competitive positioning has improved," after Sabre and Alphabet Inc.'s Google Cloud said they were . "In addition, we believe the permanent cost take-out and technology savings from shift to Cloud will drive significant upside to margins and free cash flow coming out of the crisis," Sabadra wrote in a note to clients. "Importantly, the pent-up demand for travel could potentially drive faster recovery than prior recessions." The stock, which is on track to close at the highest level since Feb. 27, has run up 35.2% over the past three months, but was still down 38.2% over the past 12 months. In comparison, the S&P 500 has gained 9.4% the past three months and rallied 15.8% the past year.
3:05 a.m. Feb. 3, 2021 - By Tomi Kilgore
Amazon gets first $5,000+ stock price target, and Alphabet gets first $3,000 targetAnalyst Shyam Patil at Susquehanna is now Wall Street's most bullish on Amazon.com Inc.'s stock, after he raised his price target to $5,200 from $4,000, while reiterating his positive rating, in the wake of the e-commerce giant's . Patil is also the most bullish on Google-parent Alphabet Inc. , after he boosted his target by 50% to $3,000 from $2,000. For Amazon, Patil's new target is 30.6% above the average target of the 48 analysts surveyed by FactSet of $3,982.03, and implies a 53.8% gain off Tuesday's closing price of $3,380.00. "Ultimately, we see [Amazon] as a long-term secular grower whose leadership in its three key markets -- e-commerce, cloud and advertising -- should emerge even stronger coming out of the pandemic," Patil wrote in a note to clients. For Alphabet, Patil's new target is 33.5% above the average target of the 43 analysts surveyed by FactSet of $2,247.44. He said a big acceleration in search and YouTube for Alphabet drove a , and expects a recovery in travel "should be a tailwind," as it represented 10% of search pre-COVID-19. Shares of Amazon rose 1.6% in premarket trading and Alphabet's stock climbed 7.4%, while futures for the S&P 500 edged up 0.3%.
4:06 a.m. Jan. 27, 2021 - By Emily Bary
Visa and Mastercard stocks downgraded at KeyBancKeyBanc Capital Markets analyst Josh Beck downgraded shares of Visa Inc. and Mastercard Inc. to sector weight from overweight, writing that there could be more challenges ahead for the payments giants as they navigate the pandemic. Beck wrote of "the prospect of sustained cross-border travel headwinds and the associated reduced visibility trading at relatively full multiples" in a note to clients late Tuesday. Beck said that the International Air Transport Association projects that air travel won't return to 2019 levels until 2024 in its baseline forecast. He maintained his "favorable long-term bias on the secular opportunity for digital payments, management execution, and competitive moat." Mastercard is due to report fourth-quarter earnings Thursday morning while Visa delivers its own numbers Thursday afternoon. Mastercard shares are up 3.3% over the past three months as Visa shares have gained 6.3%. The S&P 500 has risen 13.5% over that span.
12:56 a.m. Jan. 22, 2021 - By Steve Goldstein
Walt Disney Co. upped to buy at UBS, as price target lifted to $200Walt Disney Co. was upgraded to buy from neutral at UBS, with the broker lifting its price target on the entertainment giant to $200 from $155. "We believe Disney is positioned to achieve scale similar to industry leader Netflix with 340 million+ global subscribers by 2024, while its premium IP creates pricing power and enables the company to spend less per sub on content, driving better economics over time," said analysts led by John Hodulik. Parks will become a beneficiary of vaccine availability and pent up demand for leisure travel in the second half of 2021, the analysts added. Disney closed Thursday at $171.28.
3:37 a.m. Jan. 19, 2021 - By Tomi Kilgore
American Express stocks surges after J.P. Morgan swings to bullish from bearish, boosts price targetShares of American Express Co. rallied 2.3% in premarket trading Tuesday, after J.P. Morgan analyst Richard Shane swung to bullish from bearish on the credit card and travel services company, citing expectations of a sharp rebound in consumer spending. Shane raised his rating by two notches to overweight from underweight, while boosting his stock price target to $148 from $105. He said in the March-April period of 2021, AmEx will be lapping the severe spending decline of last year resulting from the COVID-19 pandemic, which positions the company to "rebound from being a top-line laggard to a top-line leader" in the second half of 2021. "[H]igh-end spend is likely to rebound sharply (and early) as economy recovers," Shane wrote in a note to clients. "Pend up demand for leisure travel has potential to be unprecedented catalyst in 2H21." The stock has lost 7.1% over the past 12 months through Friday, but has climbed 19.2% the past three months, while the Dow Jones Industrial Average has gained 5.0% the past year and advanced 9.3% the past three months.
6:05 a.m. Jan. 13, 2021 - By Emily Bary
Visa, Mastercard stocks get upgrades at JefferiesShares of Visa Inc. and Mastercard Inc. both got bullish upgrades at Jefferies Wednesday ahead of an expected economic recovery. Jefferies analyst Trevor Williams cited a "rare stretch of underperformance" that positions Visa and Mastercard well for 2021. Visa shares have gained 2.6% over the past three months as Mastercard shares have risen 0.3% and as the S&P 500 has added 8.5%. "With the rollout of the vaccine underway, we have increasing confidence in an eventual international travel recovery, which we believe will drive the stocks in 2021 as a more normalized earnings stream in 2022 and 2023 becomes discounted by the market," he wrote in upgrading Visa and Mastercard shares to buy from hold. He upped his Visa price target to $250 from $195 and raised his Mastercard target to $415 from $315. Visa shares are up 0.2% in Wednesday morning trading while Mastercard shares are up 1.1%. Visa announced late Tuesday that it was terminating its planned $5.3 billion acquisition of fintech company Plaid due to regulatory pushback from the Justice Department and an expectation that the Justice Department's antitrust lawsuit would take too much time to play out.
10:42 a.m. Jan. 7, 2021 - By Emily Bary
Roku stock rockets toward new record after Needham boosts price targetShares of Roku Inc. are up about 10% in afternoon trading Thursday after Needham analyst Laura Martin upped her price target on the stock to $400 from $315. The stock is on track for a new record-high close, which would be its first since Dec. 23. Martin's increased price target comes after Roku disclosed better-than-expected preliminary active-account and streaming-hours metrics for the fourth quarter. "What's clear to us from 2020 is that ROKU has won the streaming wars in the US," Martin wrote in a note to clients. "Its [connected TV] focus, platform competitive advantages, moats, and execution excellence all suggest to us that ROKU will continue to take market share in 2021." Martin expects greater advertising revenue for Roku in 2021 as big ad categories like travel, retail and entertainment could step up their spending amid an economic recovery. She also expects the company will benefit from an advertising perspective now that people are viewing streaming content for longer periods of time. Roku shares have added 77% over the past three months as the S&P 500 has increased about 11%.
7:57 a.m. Jan. 7, 2021 - By Tonya Garcia
Scotts Miracle-Gro price target gets a boost at Truist Securities based on cannabis legislation possibilities in 2021Scotts Miracle-Gro Co.'s price target was boosted to $250 from $180 at Truist Securities based on the cannabis legislation possibilities that could come from the incoming Democrat-controlled White House and Congress. "To be clear, we do not see national legalization on the horizon, but we do believe that improved banking laws and regulations will enable the legal cannabis growers to accelerate hydroponics purchases," analysts said. Truist says this could be a positive for the Hawthorne portion of the business, which sells gardening items for commercial use as well as for hobbyists. Analysts are also upbeat about the coming lawn and gardening season, which should benefit from continued COVID-19-related restrictions, keeping consumers in their homes and tending to their gardens. "This gives us greater confidence that consumers who drove strong category growth in FY20, due to lockdowns/limited travel, will come back to the category during the peak March-June season of FY21," the note said. "Additionally, our survey work indicates that a high majority of the new entrants to the category in FY20 enjoyed gardening and will continue to garden for the foreseeable future." Truist rates Scotts Miracle-Gro stock a buy. Shares of the company are up nearly 4% in Thursday trading, and have skyrocketed 111% over the last year. The S&P 500 index has gained 17.3% for the period.
6:41 a.m. Jan. 6, 2021 - By Emily Bary
Mastercard stock gains after Bank of America upgradeShares of Mastercard Inc. are up 1.1% in Wednesday morning trading after Bank of America analyst Jason Kupferberg upgraded the stock to buy from neutral. "We believe Mastercard is an ideal way to get exposure to macro/consumer spending recovery as vaccine distribution accelerates, and find risk/reward attractive as shares have traded flat the past four months," he wrote in a note to clients. He noted that the pandemic has accelerated the move toward digital payments and away from cash, a trend that should "further strengthen the long-term structural bull case" for Mastercard, Visa Inc. and PayPal Holdings Inc. . Consumers have shown a growing preference for debit spending over credit spending during the pandemic, but Kupferberg thinks there could be a "narrowing of the gap between debit and credit volume growth" in the second half of the year as consumers could start spending more heavily on discretionary categories like travel and events, which are the types of purchases often made with credit cards. Mastercard shares have added 4% over the past three months as the S&P 500 has risen 12%.
3:36 a.m. Dec. 11, 2020 - By Emily Bary
Airline stocks get downgraded at Deutsche BankU.S. airline companies could be in for "the greatest demand recovery since World War II in 2021," according to Deutsche Bank analyst Michael Linenberg, but he argued that their stocks look fairly valued after a big recent run up. Linenberg downgraded shares of American Airlines Group Inc. , Allegiant Travel Co. , Delta Air Lines Inc. , Hawaiian Holdings Inc. , JetBlue Airways Corp. , Southwest Airlines Co. , Spirit Airlines Inc. , Skywest Inc. , and United Airlines Holdings Inc. to hold from buy, writing that that he doesn't see too much room for upside in the sector. "The stocks are at or near fair value based on 2022 valuations (and in some cases, 2023), suggesting to us that investors' have already paid for two years of earnings growth," Linenberg wrote. The U.S. Global Jets ETF has risen 31% over the past three months as the S&P 500 has increased 10%.
5:54 a.m. Dec. 10, 2020 - By Emily Bary
Booking, Expedia get downgrades from Citi as analyst warns potentially spotty vaccine adoption could hamper travelCiti Research analyst Jason Bazinet downgraded shares of Booking Holdings Inc. and Expedia Group Inc. to neutral from buy late Wednesday, writing that investors may have an overly rosy view of the prospects for the online-travel companies. "Recent vaccine headlines have caused most investors to expect 2022 revenue to match 2019 revenues," Bazinet wrote. He sees a few reasons for caution, however, about Expedia and Booking. For one, the International Air Transport Association predicted in a November forecast that passenger volumes won't meet 2019 levels until at least 2024. Further, Bazinet notes that the business-travel market may be "permanently impaired" since some workers may opt to hold meetings via video instead of making in-person trips. Such a dynamic could result in higher consumer prices for hotels and flights, "inhibiting consumer demand," he wrote. Finally, he notes that there's still a wide swath of the population that seems unwilling to get an approved vaccine, based on an October Gallup survey. "If vaccine adoption is required for air and hotel travel, this may also inhibit travel demand," he wrote. "In short, we do not see a straight line between vaccine availability and 2022 revenues matching 2019 levels. We expect the road to full recovery will be a bit bumpier than that." Expedia shares have gained 21% so far this year as Booking shares have climbed 4.3%.
2:10 a.m. Dec. 7, 2020 - By Steve Goldstein
Boeing upped to buy at UBS on narrowbody viewBoeing was upgraded to buy from neutral at UBS, which doubled its price target to $300 from $150. UBS said Boeing can get to 50 or more per month of production on the 737, "in a supply constrained world post-2021/22 as leisure, domestic and low cost carrier-centric demand recovers the fastest and affords a continued path of production growth." The stock retains its lowest sell-side rating in a decade and positive catalysts ahead include travel restriction relaxation and MAX certification in China, the brokerage added. Boeing shares rose 1.4% in premarket trade and have gained 30% over the last month.
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