Lululemon’s downgrade hit the wire last week, as did a new buy call in Norfolk Southern. Here are all of last week’s most significant analyst valuation changes, first spotted by InvestingPro. Sign up for comprehensive, fast coverage of the analyst movements that move the markets.
Reputable research firm Bernstein downgraded popular trade name lululemon (NASDAQ:) to underperforming and added $290 PT to the stock.
The company is aware of a resetting of expectations for LULU from investors, saying, “The gap between expectations and reality has been our biggest concern over the past year. With a more cautious outlook for investors and a shift in the margin mix to negative, we expect revenues, earnings and growth to slow significantly and multiples to follow suit.”
LULU’s share price fell 1.5% on Tuesday on a downgrade and traded lower for the rest of the week, ending the week modestly at $310.85.
Alaska Airlines staunchly opposes downgrade
As markets heated up throughout the week, Wolfe Research issued a negative memo to Alaska Airlines (NYSE:) on Friday, downgrading the stock to Peer Perform and lowering the entire U.S. aviation sector to Market Underweight. .
Citing the leading airline metric, Total Revenue Per Available Seat Mile (TRASM), the boutique research outlet commented: ALK’s competitive trend also accelerated in the first quarter (year-over-year basis). ”
US airlines performed well throughout the week, so the impact of the downgrade was minimal. ALK was no exception.
Norfolk Southern Falls Despite Rise in Ratings
Deutsche Bank upgraded Thursday Norfolk Southern Corp (NYSE:) is a continuation of an earlier paper that said it was “intrigued by the company’s new business plan, which, combined with a clear sense of urgency from new CEO Alan Shaw, could show measurable improvement.” We plan to buy with a price target of $266. the next few months. ”
NSC’s average train speed is up 16%, according to a global investment bank, and rail companies are hiring more train and engine workers to attract new operating talent.
Bizarrely, the NSC failed to upgrade amid imminent mass uncertainty as the central bank decides whether to keep rate hikes steady or ease the pedal a bit. .NSC shares, which began to fall on Tuesday, plunged again on Thursday, ending the week at $238.81 – Down 6.1% from Monday’s open near $255.
Philip Morris and PTC Upgrades
Bulge bracket bank Goldman Sachs backed Philip Morris (NYSE:) last week, announcing an upgrade to buy and a price target of $120.
Banks hope tobacco companies will attract investors from three sources: “(1) ILUMA’s broader and more aggressive global expansion, (2) an RRP innovation pipeline that PM will combine and accelerate from its acquisitions of both Swedish Match and Veltin, pushing PM into new markets. , unique R&D capabilities to create next-generation, low-risk products that increase usage and accelerate conversion from combustible tobacco; (3) further price segmentation of iQOS to attract new users.”
PM shares surged on Wednesday’s upgrade, ending the session at 103.42, up 2.1%, before ending the week at $103.76.
And Monday Keybanc was upgraded PTC (NASDAQ:) Changed to Overweight at $155 and commented:
Analysts see a 29x free cash flow valuation for PTC compared to 32x for the group.
The stock rose strongly in the session, ending the week up 1.8% from Monday’s opening.
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