In a recent analyst call, Jefferies upgraded Boston Beer, the owner of Samuel Adams and Truly hard seltzer, to a buy rating. Analyst Kaumil Gajrawala cited potential multiple expansion opportunities for the company. Gajrawala highlighted the growth potential in flavored malt beverages and ready-to-drink cocktails, predicting a 4% to 5% increase in sales. One particular standout for Boston Beer was Twisted Tea, which has been dominating the hard teas sector.
The analyst noted that the decline in seltzer sales was slowing down, which had previously impacted the company’s valuation. However, Twisted Tea’s performance was outpacing Truly, which bodes well for Boston Beer’s future growth. This upgrade comes at a time when Boston Beer’s stock has seen a decline of nearly 18% year-to-date, partly due to the increasing competition in the alcoholic beverage industry.
Deutsche Bank recently maintained a hold rating on Nvidia ahead of its upcoming earnings announcement. While the bank acknowledged Nvidia’s strong performance and outlook, analyst Ross Seymore expressed concerns about the stock being fully valued by investors. Seymore reiterated his hold rating on Nvidia, with a $850 price target, suggesting a potential 6% pullback from the previous close.
Despite recognizing Nvidia’s technological advancements and the sustained demand for AI-related products, Seymore believes that investors may be cautious about the stock’s upside potential during this earnings season. The analyst forecasted Nvidia to report $24.5 billion in revenue for the quarter, marking an 11% increase from the previous quarter. Notably, Nvidia’s stock has surged by 82.5% in 2024, but the recent performance has been relatively stagnant, with less than a 5% increase over the last month.
On the contrary, Wells Fargo’s Aaron Rakers expressed a more bullish outlook on Nvidia. Rakers raised his price target on the stock to $1,150, expecting a significant upside of over 27%. This optimism reflects the varying perspectives among analysts regarding Nvidia’s future performance and valuation.
JPMorgan recently upgraded Planet Fitness from a neutral to an overweight rating, citing potential for a comeback in the gym stock. Analyst Rahul Krotthapalli raised the price target to $78, indicating a 19% upside from the previous close. The upgrade was driven by growing confidence in the improvement of franchise new unit economics and the long-term development outlook for the company.
Despite mixed first-quarter results, with earnings per share beating estimates but revenue falling slightly below consensus, JPMorgan remains optimistic about Planet Fitness’s prospects. The stock has faced challenges this year, experiencing a 10.2% decline, but the analyst believes that the strategic initiatives and pricing adjustments by the company could lead to a turnaround in its performance.
Overall, the analyst calls and Wall Street chatter provide valuable insights into the market sentiment and expectations for these notable companies. While opinions may vary among analysts, the continuous evaluation and analysis of these stocks play a crucial role in guiding investors’ decisions and understanding the underlying dynamics of the market.