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Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Verizon Communications, American Express , PACCAR, and Chewy.
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Verizon Communications upgraded to Buy following Q3 beat
Barclays upgraded Verizon Communications (NYSE:VZ) to Overweight from Equalweight with a price target of $38.00 (from $37.00), as reported in real time on InvestingPro, Tuesday's strong Q3 results.
The mobile behemoth reported earnings and revenues Tuesday morning that that surpassed expectations, and also bumped up its yearly free cash flow outlook on enticing promotional offers and the high-speed 5G network, which it said attracted more subscribers in Q3.
Following these results, Barclays analysts wrote that the share price still seems too low: "We believe the expected improvement in second derivatives across unit growth, ARPU [average revenue per user], service revenue, EBITDA and free cash flow is still not reflected in valuation."
Shares jumped more than 9% on the earnings news Tuesday, although they were pulling back a bit amid a larger market retreat Wednesday, losing 1.2% to $33.88.
American Express picks up another upgrade
Citi upgraded American Express (NYSE:AXP) to Neutral from Sell and raised its price target to $154.00 from $143.00, following the company’s better-than-expected Q3 results last week.
The analysts noted that, even with a modest slowing in spend growth, overall spending remains robust. Additionally, they wrote, net interest income and card fees have surpassed expectations, and credit stands below its pre-pandemic levels.
Citi highlighted the resilient credit quality of American Express in comparison with those of other credit card issuers, reflecting the lack of inflation impact on the high-end consumer. Citing better loan growth, continued card fee growth, and reduced credit loss assumptions, Citi revised its 2024 EPS forecast to $11.45 from $10.57.
Earlier in the week, Piper Sandler also raised American Express's rating to Neutral from the prior Underweight rating, setting a price target at $151.00.
Shares were recently nearly unchanged at $144.49.
PACCAR upped to Buy at Deutsche
Deutsche Bank upgraded PACCAR (NASDAQ:PCAR) to Buy from Hold and raised its price target to $115.00 from $94.00 following the company’s better-than-expected Q3 earnings Tuesday.
Following those results, Deutsche analysts highlighted said PACCAR is a "best-in-class Machinery company that has historically executed very well in a downturn given relatively mild decremental margins."