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Roku raised to Buy, YPF extends gains following upgrade: 4 big analyst picks.

Davit Kirakosyan |

© Reuters — Here is your Pro Recap of the biggest analyst picks you may have missed today: upgrades at Roku, YPF Sociedad Anonima, Teva Pharma, and Federal Realty Investment Trust.

Roku shares rise on upgrade

Roku (NASDAQ:ROKU) shares rose more than 1% pre-market today after Cannonball Research upgraded the company to Buy from Neutral with a price target of $116.00, as reported in real-time on InvestingPro.

The analysts anticipate more significant upward revisions to the fiscal 2024 consensus forecast than in recent quarters. “Our thesis is not based on an expectation of an improvement in the advertising market trends. Instead, we assume a continuation of the trends we have seen since Q2 FY22,” commented the analysts.

YPF earns an upgrade at Goldman Sachs

Goldman Sachs upgraded YPF Sociedad Anonima (NYSE:YPF) to Neutral from Sell and raised its price target to $17.10 from $8.50. This upgrade follows the announcement by President-elect Javier Milei, who is set to take office on Dec 10, about his intention to privatize the company. In response to this news, shares in the Argentine state-run oil company experienced a nearly 40% surge last Monday.

“The change in government in Argentina could lead to a re-rating on the name in a scenario in which the new administration is less involved (vs prior),” commented Goldman Sachs.

The analysts also pointed out that the new president's policy direction might lead investors to expect the company to focus more on generating cash, in contrast to the previous administration's practice of using cash for capital expenditures.

Currently, YPF's shares are up 4% in pre-market.

Two more upgrades

Teva Pharma (NYSE:TEVA) shares rose more than 2% pre-market today after UBS upgraded the company to Buy from Neutral and raised its price target to $13.00 from $11.00.

The analysts noted that Teva is in a unique position for a major shift towards becoming a more brand-focused company, which they believe could drive stock outperformance. They highlighted that their revised estimates for Teva’s Sales/EBITDA 3-year forward CAGR are now at 3%/4%, compared to the consensus of 1%/3%.

While Teva's focus in recent years has been on stabilizing revenue and EBITDA, analysts expect future attention to turn toward Teva's attractive brand assets. This shift could allow investors to benefit from accelerated product launches and reduced pipeline risks.

“More than 20% of Teva's '27-'30E sales (vs current 11%) can come from high-growth brands, with potential for upside, while mature business stabilizing supports strong FCF,” commented the analysts.

Evercore ISI upgraded Federal Realty Investment Trust (NYSE:FRT) to Outperform from In Line and raised its price target to $108.00 from $104.00.

“FRT has lagged the peers YTD and its relative value has improved significantly. With the stock trading north of a 7% implied cap rate we believe FRT has a good risk/reward profile moving into 2024," mentioned the analysts.


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