©Reuters.
Amidst the biggest rating changes over the past week, Verizon has been placed on Overweight Morgan Stanley and Datadog enjoyed a double dose of positive analyst reports. Here are the top changes in analyst ratings over the past week, covered first on InvestingPro+. Sign up for comprehensive, fast coverage of market-moving analyst moves.
Stifel started the week by upgrading from Under Armor (NYSE:) (NYSE:) buy from hold. Class A shares rose 5% on opening Monday after InvestingPro+ reported the upgrade and ended the day up more than 10%.
The Stifel analyst noted that its reviews indicate lead times are tightening, which should provide a tailwind for calendar year 2023 cash flow. As 2023 approaches and uncertainty continues to mount, Stifel’s note reminded clients of the comfort that underpins a company with disciplined operations management and a strong balance sheet.
For the week, Class A shares are up 1.4% from Monday’s open.
UBS has downgraded Norwegian Cruise Line (NYSE:) to Neutral from Buy mainly on valuation after Monday’s close after rewarding shareholders with a gain of over 30% since October. Norwegian shares fell 2.8% in Tuesday’s session.
One concern noted in the customer announcement is NCLH’s ability to manage spending compared to pre-COVID 2019. UBS primarily sees more downsides than upsides for the stock if the story continues into 2023 and a looming U.S. recession.
The stock lost 6% this week.
Datadog (NASDAQ:), meanwhile, has been upgraded to Outperform by Oppenheimer on Wednesday, and shares rose 3.8% at the open after InvestingPro+ reported the move, to finish a 4.9% intraday gain at $83.60. Wedbush followed up with an outperform initiation on Thursday.
Oppenheimer noted the combined benefits of growth and earnings to valuation dynamics. The company believes Datadog is a valuable recession play, though there’s no guarantee it’s “recession-proof.” The analyst also reminded clients of the company’s strong history in meeting investor expectations.
Wedbush believes Datadog’s downsides are limited as the macro economy takes its toll on the business and notes that customer access has stagnated as momentum at Datadog has slowed. Wedbush echoed Oppenheimer’s view of the company’s strength, commenting that the company was “best in class” in terms of sales productivity.
Shares rose 4% on the week.
Morgan Stanley upgraded Verizon (NYSE:). Friday on upside relative to peers over the next 12 months.
The bank believes Verizon’s current valuation overprices negative expectations and likely fails to factor in changing trends in the stock price. As debates rage on about a possible U.S. recession in 2023, one of Verizon’s attractions is a 7% dividend yield.
Still, shares lost 1.7% for the day and 1.5% for the week.
***
If you’re interested in improving your search for new investment ideas, check out InvestingPro+
Comments are closed.