In this article, we discuss some latest and important stock analyst ratings. If you want to read our detailed analysis of these stocks, go directly to Analysts Just Updated Ratings of These 10 Stocks.
5. Republic Services, Inc. (NYSE:RSG)
Number of Hedge Fund Holders: 34
Republic Services, Inc. (NYSE:RSG) is a leading provider of waste disposal services in the U.S. Its primary services include collecting, transferring and recycling non-hazardous solid waste.
Deutsche Bank upgraded Republic Services, Inc. (NYSE:RSG) on Thursday, June 16, 2022, from “Hold” to “Buy,” stating the Phoenix-based waste disposal company provides an inflation hedge in the current environment.
Deutsche Bank analyst Kyle White thinks that Republic Services, Inc. (NYSE:RSG) ‘s core pricing will keep increasing, balancing the negative impact of inflation. White considers Republic Services, Inc. (NYSE:RSG) a safe investment citing its defensive attributes.
4. AutoZone, Inc. (NYSE:AZO)
Number of Hedge Fund Holders: 38
Morgan Stanley improved its ratings for AutoZone, Inc. (NYSE:AZO) from “Equal Weight” to “Overweight” on Thursday, June 16, 2022, saying the stock offers a 20 percent upside given the durability of its profit and sales growth. The research firm also increased its price target for the aftermarket automotive parts retailer from $2,125 per share to $2,420 per share.
Separately, investment management firm Altron Capital Management also discussed the growth prospects of AutoZone, Inc. (NYSE:AZO) in its fourth-quarter 2021 investor letter published in April. Here’s what the fund said about AutoZone, Inc. (NYSE:AZO):
“AutoZone has been a winner since we built a position in the company last quarter. Given the current supply challenges in the automotive sector, we believe the long-standing trend of America’s aging automotive fleet will continue for the foreseeable future with AutoZone as a primary beneficiary.”
3. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 52
The Boeing Company (NYSE:BA) received an upgrade from Citigroup on Thursday, June 16, 2022. The research firm raised its ratings for the Virginia-based aerospace giant from “Neutral” to “Buy.”
The research firm said the fair value of The Boeing Company (NYSE:BA) stock would be $209 if its programs (737 MAX, 777X, 787) meet Citi’s production and profitability projections. Citi analyst Charles Armitage expects 737MAX to return to commercial service. He also anticipates 787 deliveries resuming in the near future.
The Boeing Company (NYSE:BA) stock has been struggling to gain value since the coronavirus outbreak in 2020. The company’s share price has plummeted about 42 percent over the past 12 months and roughly -34 percent so far in 2022.
2. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 56
Shares of Capital One Financial Corporation (NYSE:COF) rose over five percent on Friday, June 17, 2022, after Baird turned bullish on the bank holding company. The research firm raised its ratings for Capital One Financial Corporation (NYSE:COF) from “Neutral” to “Outperform,” maintaining a price target of $145 per share for the stock.
Baird analyst David George admitted that Capital One Financial Corporation (NYSE:COF) stock has recently come under pressure due to macro concerns. However, George believes those concerns “are more than priced” into the stock as it trades at 15 – 20 percent discount considering key performance metrics like price-to-earnings and sales. He added that the company’s current share price presents a good entry point.
Separately, investment management firm Davis Funds mentioned Capital One Financial Corporation (NYSE:COF) in its fourth-quarter 2021 investor letter published in March. The firm stated:
“The absolute level of revenues and profits generated by such companies is in fact so large that most of the major financial holdings in the portfolio produce enough annual operating income individually that a number of them could, in theory, purchase several entire businesses among hundreds of choices within the S&P 1500 Index, using just a year’s cash earnings without dipping into capital. This is theoretical, as financial companies would not be in the business of buying healthcare or technology companies, for example, but we point out these facts to illustrate the sheer scale of the economics produced by single financial companies in a given year, which is often a multiple of the cash earnings yielded by companies in a host of other industries.
Given this cash-generation power, we are naturally drawn to what we believe are strong and profitable financial institutions when the price is right. Presently, we believe the valuations of our financial holdings are not only reasonable, but extremely compelling, and our portfolio composition reflects this view. Representative financial holdings in the Fund includes Capital One Financial.”
1. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 67
Shares of CF Industries Holdings, Inc. (NYSE:CF) fell over four percent on Friday, June 17, 2022, after Citigroup downgraded the agricultural fertilizers maker from “Buy” to “Neutral.”
The research firm also cut its price target for CF Industries Holdings, Inc. (NYSE:CF) from $123 per share to $99 per share. Citi analyst P.J. Juvekar said commodity chemicals has been outpacing the S&P 500 Index but that’s about to end.
In a research note to investors, Juvekar said rising interest rates will slow down the economic activity, leading to a weaker housing and consumer spending. He added that Federal Reserve’s latest interest rate hike sent chemical companies, including CF Industries Holdings, Inc. (NYSE:CF), down this week. Juvekar warned of an additional downside in case of economic deceleration.
You can also take a peek at 10 Best Biotech Stocks Under $5 and 10 Favorite Stocks of Dan Loeb’s Third Point.
