Mizuho Securities recently upgraded Squarespace, emphasizing the overlooked growth opportunities that the company possesses. The analyst at Mizuho Securities, Siti Panigrahi, believes that Squarespace has the potential to exceed Wall Street growth estimates significantly. The upgraded rating from neutral to buy, along with the increased price target to $50 per share from $34, indicates a potential upside of approximately 36% from the previous close. Squarespace’s stock has shown a 12% increase in the year 2024, highlighting the positive momentum the company is experiencing. The analyst pointed out specific growth levers such as the Google Domains asset acquisition and pricing tailwinds that are often undervalued by investors.
Citi upgraded Cheesecake Factory to buy, citing a “de-risked growth outlook” for the restaurant chain. Analyst Jon Tower highlighted several factors contributing to the growing confidence in Cheesecake Factory’s future performance. The firm raised the price target to $47 per share from $38, implying a potential upside of over 30% from the previous close. Tower pointed out that high-frequency data supports the company’s traffic outperformance and share gains compared to its peers. The stable labor environment and undervalued valuation relative to industry averages further support the positive outlook on Cheesecake Factory’s growth potential.
TD Cowen upgraded Dutch Bros to buy, emphasizing the attractive risk-to-reward profile that the company offers. Analyst Andrew M. Charles highlighted Dutch Bros’ ability to innovate in the beverage industry and capitalize on targeted marketing strategies. The increased target price to $46 per share from $33 suggests a potential upside of more than 40% from the previous close. Charles mentioned that Dutch Bros’ efforts in enhancing beverage innovation and customer loyalty programs have been well-received, positioning the company for continued success in the market. Despite lagging behind the broader market with a 4% increase in 2024, Dutch Bros’ growth potential remains compelling.
Stifel downgraded Planet Fitness to hold from buy, reflecting concerns about the company’s quarterly sales and earnings volatility. Analyst Chris O’Cull expressed reservations about the pace of strategic changes needed to support franchisee development and address rising cancellation rates. The reduced price target to $70 per share from $80 indicates a limited upside of about 7% from the previous close. O’Cull highlighted the challenges faced by Planet Fitness in maintaining a stable business model amid changing market dynamics. While the company has made progress in improving unit returns, the overall performance has been hindered by strategic decisions and internal operational issues.
HSBC upgraded 3M to buy, expecting a “return to growth” driven by improving macroeconomic conditions and cost-saving initiatives. Analyst Wesley Brooks raised the price target to $115 per share from $91.13, signaling a potential upside of over 18% from the previous close. Brooks emphasized 3M’s resilience as a quality company despite recent changes, including the spin-off of its health care component. The better-than-expected first-quarter results and conservative forward guidance indicate a positive trajectory for 3M in the coming months. With a 6% increase in 2024, 3M’s stock reflects the market’s confidence in the company’s growth prospects.
Overall, the analyst calls and Wall Street chatter on Friday reflect a mix of upgrades and downgrades across different sectors. While some companies are poised for growth and market outperformance, others face challenges in adapting to evolving market conditions. Investors should carefully consider the insights provided by analysts and conduct their research to make informed investment decisions.