Analyst Upgrades / Downgrades – 07/31/23

Upgrades

$ADBE – Adobe Inc.
Recent News
Morgan Stanley analyst Keith Weiss has upgraded Adobe Inc. stock from Equal-Weight to Overweight, causing a 3% increase in its trading value. The price target has also been raised from $510 to $660. This upgrade is due to confidence in Adobe’s growth, especially in Generative AI (GenAI). GenAI is seen as a driver of product innovation and workflow integration. Weiss also highlighted Adobe’s potential to monetize GenAI through new products, a new consumption model, and increased enterprise adoption, which could generate an extra $1.99 billion in revenue by 2025. Morgan Stanley predicts a 17% Compound Annual Growth Rate for Adobe’s EPS from 2022 to 2025. Adobe’s strong position in the software industry and its potential in the Document Cloud and Digital Experience platform were also factors in the upgrade.

Brokerage Firm:Morgan Stanley
Rating Change: Equal-Weight >> Overweight
Price Target: $510.00 >> $660.00
Shares Outstanding: 458.00M Share Float: 454.46M

$CVX – Chevron Corporation
Recent News
Goldman Sachs, led by analyst Neil Mehta, has upgraded Chevron Corp from Neutral to Buy and set a price target of $187. This upgrade is due to an expected increase in the company’s capital returns, driven by a cash flow turning point. Despite Chevron’s underperformance in the last year, Goldman Sachs predicts a bright future for the company, with improvements in return on capital employed, production per share growth, and free cash flow per share from 2024 to 2026. Mehta also expects Chevron to add around $1.5 billion to its earnings in 2026 due to increased crude oil flows. Despite a predicted negative net cash in 2024, positive net cash is expected for 2025 and 2026. Chevron is currently undervalued compared to its peers, especially U.S.-based alternatives, and is expected to yield about 22% returns per year.

Brokerage Firm: Goldman Sachs
Rating Change: Neutral >> Buy
Price Target: $187.00
Shares Outstanding: 1.89B Share Float: 1.87B

$W – Wayfair Inc.
Recent News
Wayfair’s stock rose by 6% after Piper Sandler upgraded it due to better sales and market share. The stock rating went from Neutral to Overweight, and the price target increased from $35 to $97, suggesting a 33% potential rise. The upgrade was due to three reasons: the home furnishings industry stabilizing, leading to more sales for Wayfair; positive feedback from suppliers after a June summit, showing more confidence in Wayfair’s services; and a good valuation at 0.9x EV/Sales. The analysts also think Wayfair will maintain its profitability and that the upcoming Investor Day on August 10 will boost investor confidence.

Brokerage Firm: Piper Sandler
Rating Change: Neutral >> Overweight
Price Target: $35.00 >> $97.00
Shares Outstanding: 110.00M Share Float: 78.06M

Downgrades

NO NOTABLE STOCK DOWNGRADES

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