Analyst Review – 01/17/24

Upgrades

$ADP – Automatic Data Processing Inc.
Recent News
ADP is drawing attention as it nears its financial results announcement on January 31, following a series of forecast reductions post its previous earnings season. In 2023, ADP’s stock underperformed the S&P500 by approximately 2,400 basis points, attributed by BofA Securities to reduced benefits from employment trends and interest rates. Recently, BofA Securities analyst Jason Kupferberg upgraded ADP from Underperform to Neutral, raising the price target from $217 to $243. This follows ADP’s report of expected slower revenue growth and EBIT margin pressure. Kupferberg anticipates a potential modest guidance increase for Fiscal Year 2024, driven by stronger bookings and retention, and possible improvement in the macroeconomic environment. He also sees potential growth in ADP’s PEO segment later in the year. 

Brokerage Firm: BofA Securities
Rating Change: Underperform >> Neutral
Price Target: $217>>$243

$MARA – Marathon Digital Holdings
Recent News
Marathon Digital has experienced notable changes in its stock ratings. Recently, BTIG Research upgraded the company from “neutral” to “buy,” setting a price target of $27.00, indicating a potential 51.86% increase from its current price. Various other firms have also weighed in: Needham & Company LLC with a “hold” rating, JPMorgan Chase & Co. with “underweight” and a $5.00 target, HC Wainwright with a raised target to $24.00 and a “buy” rating, and Sanford C. Bernstein with a “market perform” rating and $8.30 target. StockNews.com upgraded Marathon Digital from “sell” to “hold.” Despite these mixed reviews, the company reported slightly lower-than-expected earnings per share and revenue in its latest quarterly results, with a negative net margin and return on equity. Analysts predict an EPS of -0.09 for the current fiscal year, and Marathon Digital currently holds an average “Hold” rating and a $15.76 average price target.

Brokerage Firm: BTIG Research
Rating Change: Neutral >> Buy
Price Target: $27

Downgrades

$F – Ford Motor Company
Recent News
Ford has recently been downgraded from “Buy” to “Neutral” by UBS, with analysts citing the automaker as fairly valued but facing more challenges compared to its rivals. This sentiment was discussed by Yahoo Finance’s Brad Smith and Seana Smith. Brad pointed out that Ford, despite facing industry-wide headwinds like pricing, affordability, labor, and investment issues, has additional hurdles in execution and quality challenges, which have led to a 2.4% decline in shares following the downgrade. Seana added that the slower-than-expected growth in electric vehicles (EVs) and necessary adjustments in Ford’s plans have contributed to the downgrade. Analyst Joe Spak of UBS believes Ford’s transition to new strategies might take longer than anticipated. Shareholders have experienced a lackluster year, with Ford’s shares declining about 6% since the start of the year and about 10% over the last year. This shift in strategy, as noted by CEO Jim Farley, indicates a challenging period ahead for Ford, making it a company to watch in the trading market.

Brokerage Firm: UBS
Rating Change: Buy >> Neutral
Price Target: $12

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