Today’s most important upgrades
By Davit Kirakosyan
TripAdvisor (NASDAQ:TRIP) shares surged 8% intra-day today after BofA Securities upgraded the company to Buy from Underperform and raised its price target to $38.00 from $19.00 based on accelerating growth in Viator (experiences bookings), with strong U.S. demand and European recovery.
“Viator’s revenue growth vs 2019 has far exceeded TRIP’s total revenue growth vs 2019 over the last few quarters, and in 3Q22 Viator contributed 38% of TRIP’s total revenue vs. only 18% in 2019,” said the firm.
Morgan Stanley upgraded American Express (NYSE:AXP) to Overweight from Equalweight and raised its price target to $186.00 from $176.00.
The firm promoted the stock to Top Pick within its research coverage of Consumer Finance companies as it prefers to shift stock picks toward more high-credit quality stocks, as well as those that offer sustainable revenue growth and positive operating leverage.
The firm sees sustainable revenue growth for the company, expected to increase by over 15% this year. On the other hand, management’s comments about lower costs should help deliver ~400bp of positive operating leverage in 2023, the firm projects.
BofA Securities upgraded Royal Caribbean Cruises (NYSE:RCL) to Neutral from Underperform and raised its price target to $78.00 from $40.00.
Shares closed more than 7% higher yesterday after the company posted a narrower Q4 loss that was better than expected, as strong passenger demand partly offset an uptick in fuel costs.
Morgan Stanley upgraded Omnicom Group (NYSE:OMC) to Equalweight from Underweight with a price target of $95.00.
Shares gained more than 6% intra-day today after the company reported its Q4 results, with EPS of $2.09 coming in better than the consensus estimate of $1.96. Revenue was $3.87 billion, beating the consensus estimate of $3.7B.
CFRA upgraded Cheniere Energy (NYSE:LNG) to Buy from Hold with a price target of $180.00.