In this article, we discuss analysts’ updated recommendations for 5 companies. If you want to read our detailed analysis of these companies, go directly to Analysts Just Revised Their Ratings for These 10 Companies.
5. Suncor Energy Inc. (NYSE:SU)
Number of Hedge Fund Holders: 41
Shares of Suncor Energy Inc. (NYSE:SU) jumped over eight percent on Tuesday, June 21, 2022, after RBC Capital improved its ratings for the Canadian integrated energy company from “Sector Perform” to “Outperform.”
The upgrade follows RBC Capital analyst Greg Pardy’s recent institutional meeting with the company. Following the meeting, Pardy sees Suncor Energy Inc. (NYSE:SU) reclaiming its best-in-class status with enhanced operational reliability.
Separately, investment management firm ClearBridge Investments mentioned Suncor Energy Inc. (NYSE:SU) in its first-quarter 2022 investor letter published in April. Here’s what the fund said:
“Also within the structural bucket, we added to our commodity exposure with the purchase of Suncor Energy (NYSE:SU). Suncor, a past holding, is a Canadian integrated oil company where we capitalized on attractive valuation due to a COVID-19-induced slowdown. We expect recovery in oil demand and strong pricing will result in faster than expected free cash flow growth and financial deleveraging.
The structural bucket has the shortest investment horizon across the spectrum of growth companies we target in the Strategy. We closely monitor the macro impacts and turnaround progress of these companies and will be disciplined sellers when the thesis for a holding plays out.”
4. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 50
Shares of American Tower Corporation (NYSE:AMT) turned green on Tuesday, June 21, 2022, after JPMorgan upgraded the Boston-based real estate investment trust from “Underweight” to “Overweight.”
JPMorgan analyst Philip Cusick referred to the highly predictable revenue stream of American Tower Corporation (NYSE:AMT). Moreover, Cusick believes the drop in the company’s share price on a year-to-date basis has created a positive risk/reward. The analyst also lifted his price target for American Tower Corporation (NYSE:AMT) from $245 per share to $285 per share.
3. Centene Corporation (NYSE:CNC)
Number of Hedge Fund Holders: 60
Shares of Centene Corporation (NYSE:CNC) rose nearly six percent on Tuesday, June 21, 2022, after receiving an upgrade from Credit Suisse. The research firm raised its ratings for the healthcare company from “Neutral” to “Outperform.”
Credit Suisse analyst A.J. Rice thinks that the possible headwinds have already mirrored in Centene’s shares and the stock has the potential to go higher from here. Rice increased his price target for Centene Corporation (NYSE:CNC) from $86 per share to $88 per share.
The upgrade came just a few days after Centene Corporation (NYSE:CNC) updated its profit outlook for the full year. The company now anticipates adjusted earnings in the range of $5.55 – $5.70 per share, up from its previous guidance of $5.40 – $5.55 per share.
2. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 83
Shares of Exxon Mobil Corporation (NYSE:XOM) closed higher on Tuesday, June 21, 2022, after Credit Suisse improved its ratings for the stock from “Neutral” to “Outperform,” citing Exxon’s investments in several lucrative oil and gas projects.
Credit Suisse analyst Manav Gupta believes Exxon’s “differentiated growth strategy” following the Russia-Ukraine conflict will drive its growth. Gupta also lifted his price target for Exxon Mobil Corporation (NYSE:XOM) from $115 per share to $125 per share.
The upgrade comes a day after Exxon Mobil Corporation (NYSE:XOM) inked a deal with QatarEnergy to increase Qatar’s gas exports. Exxon will invest $29 billion in the project, dubbed as the biggest gas project in the world.
1. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 93
Morgan Stanley downgraded Adobe Inc. (NASDAQ:ADBE) from “Overweight” to “Equal Weight” on Tuesday, June 21, 2022. The research firm also trimmed its price target for the software company from $591 per share to $362 per share.
Morgan Stanley analyst Keith Weiss expressed concerns over the growth prospects of Adobe Inc. (NASDAQ:ADBE). Moving forward, Weiss expects Adobe’s growth to be weaker. He anticipates an annual growth of 12 percent in the company’s earnings and sales through 2024.
Investment management firm Polen Global Growth Fund also mentioned Adobe Inc. (NASDAQ:ADBE) in its first-quarter 2022 investor letter published last month. The fund said:
“Adobe is a prime example of the COVID-19 air pocket. Adobe continues to compound capital at high rates and exhibit increasing returns to scale. In the case of Adobe, reported growth appears to have decelerated significantly. However, when accounting for foreign exchange impacts and for their fiscal year 2021 having 53 weeks, the adjusted revenue growth was 17% year over year, which is fully in line with their typical growth rates. The 53rd week of the fiscal year 2021 added $267m to total revenue, creating an eight-percentage point difference in reported and adjusted revenue growth. We applaud management’s recent roll- out of Creative Cloud Express to tap into the non-professional market, as well as increasing price in 2022, which we expect to materialize in the back half of the year.”
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