ExxonMobil, Duke Energy raised on improving sector valuations: 4 big analyst picks
Investing.com | Author Davit Kirakosyan
Published Jan 23, 2024 06:43AM ET
Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed today: upgrades at Exxon Mobil, Duke Energy , Zuora, and Teva Pharma.
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Exxon Mobil upgraded at TD Cowen/h2
TD Cowen upgraded Exxon Mobil (NYSE:XOM) to Outperform from Market Perform with a price target of $115.00, as reported in real-time on InvestingPro.
The analysts noted that the potential for greater upside has become more attractive, especially since the stock's value has dropped without any change in its valuation.
We continue to forecast CFO growth below XOM's guidance, though our forecast has increased through 2023 with incremental company disclosures. XOM's peer-low oil price needed to organically fund the dividend could become a larger investor focus as commodity prices could normalize after a couple very strong years.
Duke Energy earns an upgrade/h2
Evercore ISI upgraded Duke Energy (NYSE:DUK) to Outperform from In Line and raised its price target to $108.00 from $90.00.
The analysts see Duke Energy as having the most promising total return potential among large-cap regulated companies, including Southern Company (NYSE:SO), American Electric Power (NASDAQ:AEP), and Dominion Energy (NYSE:D).
The analysts attributed this positive outlook to the company's clearer narrative following the sale of its non-regulated renewable assets and the outcome of the North Carolina rate case.
Two more upgrades/h2
Zuora (NYSE:ZUO) shares rose nearly 3% pre-market today after Goldman Sachs upgraded the company to Buy from Neutral and raised its price target to $12.00 from $10.00.
The analysts noted that heading into fiscal 2025, Zuora's numbers appear de-risked in a stabilizing market environment. The analysts see potential upside from new product adoption that is not yet factored into current models. Additionally, the company's improving profitability is viewed as both sustainable and increasingly supportive of its valuation.
Teva Pharma (NYSE:TEVA) shares rose more than 1% pre-market today after Jefferies upgraded the company to Buy from Hold and raised its price target to $14.00 from $10.00.
The analysts believe consensus revenue estimates appear conservative, despite the presence of several tailwinds, including generic drugs and key product trends. The analysts anticipate that as Teva Pharma focuses on executing its growth strategy and transitioning into an innovation-driven company, there will likely be an expansion in its market multiple this year. This expectation is based on several factors: strong guidance, continued strength in fundamentals, approvals of biosimilars, and positive pipeline updates expected in the second half of 2024.
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