Hyatt upgrade and ADP downgrade also among notable calls
Check out today’s top analyst calls from around Wall Street, compiled by The Fly.
BUY ROBINHOOD: Redburn analyst Charles Bendit initiated coverage of Robinhood (HOOD) with a Buy rating and fair value estimate of $65.35, implying 29% upside. Robinhood continues to enlarge its defined market and is geared into the increasing wealth of its users, a generation whose share of U.S. wealth is projected to triple by 2030, Bendit told investors in a research note. Alongside expansion in this area and crypto trading, the analyst expects the company to move into adjacent consumer finance areas and “export its model to overseas regions ripe for disrupt.” If Robinhood is valued in line with other “disruptive fintechs” and is also able to capture a 1% share of global neobanking revenues in 2023, he sees fair value of $97.42, implying 92% upside.
MOVING TO THE SIDELINES: Evercore ISI analyst David Motemaden downgraded Allstate (ALL) to In Line from Outperform with a price target of $135, down from $142. The analyst’s revised earnings estimates are now 7% below the Street and he believes the benefit of a large scale share repurchase has played out following the $5B authorization. Even if Allstate takes less rate than the industry, its distribution channel is “more prone to switching to the independent or direct channel if faced with a rate increase,” Motemaden told investors in a research note.
POTENTIAL BRAND ACQUIRER: Truist analyst Patrick Scholes upgraded Hyatt (H) to Hold from Sell with a $76 price target as part of a broader research note on Lodging that profiles hotel REITs “severely underperforming” since their mid-March highs. While Scholes continues to see macro headwinds from the company’s owned exposure, overconcentration on higher-rated business/group demand, and potentially higher labor cost headwinds with active labor groups, he believes Hyatt could also become a potential brand acquirer. He also attributed the rating change in part to valuation.
The analyst also upgraded
Host Hotels (HST) to Hold from Sell with a $16 price target;
Park Hotels & Resorts (PK) to Hold from Sell with an $18 price target;
Sunstone Hotel (SHO) to Hold from Sell with an $11 price target.
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