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There were some big analyst moves last week, including a downgrade from PayPal and a high price target for Coinbase. Here are all of the most significant analyst rating changes from the past week, covered first on InvestingPro. Sign up for fast, comprehensive coverage of market-moving analyst moves.
PayPal cut for underperformance
At midweek, PayPal (NASDAQ:) slid lower to Underperform from Neutral on SMBC Nikko.
The firm placed a $75 target on capital, noting that “…by juxtaposing a digital payments industry defined by innovation with an increasing focus on the ability to deliver margin expansion, we believe PayPal has never been more vulnerable to brand equity losses.
The shares fell from roughly $80 to $76 during the downsizing session before recovering the rest of the week to end at $79.09, up 0.94%.
Coinbase price target increased
On Friday, Coinbase (NASDAQ:) earned a price target increase from JPMorgan to $60 from $53, with the bank maintaining its rating at Neutral. JPMorgan wrote: “…significant depreciation in cryptocurrency prices will make it much more difficult for Coinbase to return to profitability.”
Crypto-anything is popular around the world, and even a simple PT surge, with JPMorgan on the sidelines, sent equity soaring in the pre-trade session. The strength continued throughout the day, with Coinbase closing Friday up nearly $6, or 11.61%, at $55.16.
Valero reviews positive estimates
Earlier in the week, BMO Capital updated Valero Energy Corporation (NYSE:) to top with a PT of $160.
The bank noted: “We see positive consensus estimate revisions and are 18% above 2023 EPS. We expect mid-cycle cracks to be above historical levels, and even at 2024 estimates, equities are trading at 12.1% FCF, 4.2x EV/EBITDA, and 9.0x PER”.
Stocks rallied on the improvement and ended the week up 5.30% as energy stocks continue to have appeal.
Philip Morris updated on the M&A movement
And Jefferies upgraded tobacco distributor Philip Morris (NYSE:) to Buy with a $118 price target.
The brokerage said it is now incorporating Philip Morris’s recent deal to expand its stake to more than 90% in tobacco company Swedish Match, which PM is moving to acquire outright.
He added: “Longer term, we’ve always been constructive with PM because it’s leading the charge towards the tobacco model of the future, both RRPs (reduced risk products) and beyond nicotine… Our earlier Caution in the short term on PM was based on the assumption of a European Tobacco Tax Directive (EU TTD) for RRP taxes, and then PM RRP’s lack of current exposure to the US, and the potential implications of costs and participation around this.
PM shares rallied on Thursday, regaining ground lost from the previous session, and closed almost flat for the week.
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