HP upgraded on PC sector recovery, Lyft raised after Q4 beat: 4 big analyst picks
Investing.com | Author Davit Kirakosyan
Published Feb 14, 2024 06:43AM ET
Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed today: upgrades at HP, Lyft , Citigroup , and SentinelOne.
InvestingPro users got this news and reacted in real time! PROPICKS20242 .
HP earns an upgrade at HSBC/h2
HP (NYSE:HPQ) shares rose more than 1% pre-market today after HSBC upgraded the company to Buy from Hold with a price target of $33.00 (from $30.00), as reported in real-time on InvestingPro.
The bank noted a turnaround in the global PC market, which saw modest growth in Q4/23 (global shipments rose 3% year-over-year) after experiencing declines for seven consecutive quarters. While this growth rate is modest compared to the double-digit percentage increases seen in 2020-2021, the analysts believe it may signal the start of a new upgrade cycle for PCs bought during and before the COVID-19 pandemic.
This shift coincides with the looming end-of-life for Windows 10 in October 2025 and the anticipated introduction of AI-capable PCs to the market, factors that are expected to boost sector demand.
Lyft upgraded following Q4 beat/h2
MoffettNathanson upgraded LYFT (NASDAQ:LYFT) to Neutral from Sell, with a price target of $13.00 (from $7.00). The upgrade comes after Lyft reported Q4 EPS that exceeded expectations. Additionally, the company provided an optimistic bookings outlook that surpassed consensus predictions. Lyft also announced its expectation to achieve positive free cash flow for the first time in 2024 through cost reductions and enhanced competitiveness with Uber (NYSE:UBER). Currently, Lyft shares are up more than 20% pre-market.
To be clear, we are by no means Lyft bulls. The company faces structural insurance cost headwinds, is at the mercy of Uber when it comes to pricing power & take-rates, is unprofitable on a GAAP OI basis for FY24 and FY25, and is expensive versus peers after factoring in SBC. However, it is simply too challenging for us to remain Sell rated with estimates that are now undifferentiated.
Two more upgrades/h2
Piper Sandler upgraded Citigroup (NYSE:C)to Overweight from Neutral with a price target of $63.00 (from $56.00). As a result, shares rose more than 1% pre-market today.
SentinelOne (NYSE:S) shares gained more than 5% pre-market today after BofA Securities upgraded the company to Buy from Neutral with a price target of $35.00 (from $26.50).
Though competition remains intense, our more positive view is driven by our expectations for the near-term pathway to profitability and FCF generation, re-accelerating net new ÅRR growth long-term industry tailwinds, and improving market conditions.
Take your investing game to the next level in 2024 with Subscribe here and never miss a bull market again!
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.