Verizon still too cheap, says Barclays: 4 big analyst picks
Investing.com | Author Davit Kirakosyan
Published Oct 25, 2023 05:09AM ET
Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Verizon Communications, American Express , PACCAR, and Chewy.
InvestingPro , Tuesday's strong Q3 results.
The mobile behemoth reported earnings and revenues Tuesday morning that that surpassed expectations, and also bumped up its yearly free cash flow outlook on enticing promotional offers and the high-speed 5G network, which it said attracted more subscribers in Q3.
Following these results, Barclays analysts wrote that the share price still seems too low: "We believe the expected improvement in second derivatives across unit growth, ARPU [average revenue per user], service revenue, EBITDA and free cash flow is still not reflected in valuation."
Shares jumped more than 9% on the earnings news Tuesday, although they were pulling back a bit amid a larger market retreat Wednesday, losing 1.2% to $33.88.
American Express picks up another upgrade /h2
Citi upgraded American Express (NYSE:AXP) to Neutral from Sell and raised its price target to $154.00 from $143.00, following the company’s better-than-expected Q3 results last week.
The analysts noted that, even with a modest slowing in spend growth, overall spending remains robust. Additionally, they wrote, net interest income and card fees have surpassed expectations, and credit stands below its pre-pandemic levels.
Citi highlighted the resilient credit quality of American Express in comparison with those of other credit card issuers, reflecting the lack of inflation impact on the high-end consumer. Citing better loan growth, continued card fee growth, and reduced credit loss assumptions, Citi revised its 2024 EPS forecast to $11.45 from $10.57.
Earlier in the week, Piper Sandler also raised American Express's rating to Neutral from the prior Underweight rating, setting a price target at $151.00.
Shares were recently nearly unchanged at $144.49.
InvestingPro subscribers are always one step ahead with lightning-quick updates.
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.