Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at DraftKings, Fortinet, Wayfair, and DaVita HealthCare.
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DraftKings upgraded at Wells Fargo
Wells Fargo upgraded DraftKings (NASDAQ:DKNG) to Overweight from Equal Weight and raised its price target to $37.00 from $28.00 after the company reported a Q2 beat and raised its guidance last week, as reported in real time on InvestingPro.
The firm’s rationale for the upgrade includes the faster and steeper growth of EBITDA than previously anticipated, an expectation of sustained operational momentum, the positive progress of the company’s market share expansion, and structural hold increase, along with controlled costs. Wells added:
"We think EBITDA ests will continue to move higher, resulting in a more palatable valuation (key pushback, and to this point, our main reservation)."
Shares were recently up fractionally to $31.88 in the premarket.
Fortinet earns an upgrade at Guggenheim
Following Fortinet 's (NASDAQ:FTNT) Q2 earnings announcements last week, Guggenheim upgraded the company to Buy from Neutral with a price target of $70.00, expecting growth to pick up again in 2024.
Despite the challenges Fortinet may face in the second half of the year, Guggenheim doesn’t see any long-term structural issues or a deterioration in the company’s competitive position. Looking at historical trends, there might still be some uncertainty regarding the consensus estimates for the second half of 2023. However, considering the stock has already dropped by over 25% after the company's Q2 report last week, the firm believes that a significant portion of the risk has already been factored into the current price.
2 more upgrades
UBS upgraded Wayfair (NYSE:W) to Buy from Neutral and raised its price target to $110.00 from $72.00, noting that the company’s low multiple does not fully price in its favorable intermediate-term set-up.
"While sentiment on the stock has improved lately, we believe the market will be surprised by the degree of profit upside that W is likely to generate in the coming periods."
DaVita HealthCare (NYSE:DVA) shares rose more than 3% yesterday after UBS upgraded the company to Buy from Neutral and raised its price target to $142.00 from $100.00.
The firm anticipates a shift towards treatment growth in the second and third quarters, followed by accelerated growth in 2024.
"Combined with better pricing and a lower cost structure (ESA savings, closed clinics), we see numerous tailwinds that support our Street-high earnings estimates and contrarian Buy rating."
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