Wall Street Analysts’ Weekly Recap
Shake Shack Upgraded, Old Dominion Downgraded
Wall Street analysts have been busy this week, with upgrades for Shake Shack, G-III Apparel, Sea, and Textron, but a downgrade for Old Dominion. InvestingPro subscribers get the first look at these market-moving changes.
G-III Apparel Group Downgrade
Barclays downgraded G-III Apparel stock to Underweight, citing potential revenue headwinds from store closures and lost licenses. The investment bank remains optimistic about new license agreements but notes limited visibility into potential replacements for lost businesses.
Sea Ltd. Upgrade
JPMorgan upgraded Sea Ltd. to Overweight, anticipating positive earnings revisions driven by increased ecommerce commissions. The analysts caution about earnings volatility due to high take-rates but recommend trading these changes for potential gains.
Old Dominion Downgrade
BofA downgraded Old Dominion to Neutral, citing limited upside and lagging volume growth. Despite positive outlook on the company’s operations, the analysts believe the stock’s premium valuation limits its upside potential.
Shake Shack Upgrade
TD Cowen upgraded Shake Shack to Outperform, expecting positive EBITDA revisions driven by improved margins and operational efficiency. The hiring of a new CEO is seen as a positive change that could boost the brand’s performance.
Textron Upgrade
BofA upgraded Textron to Buy, highlighting the company’s strong performance in aviation, cost consolidation in industrial segments, and a robust pipeline in Textron Systems. The analysts believe Textron is well-positioned for growth in the coming years.
Overall, this week brought a mix of upgrades and downgrades in various sectors, reflecting the dynamic nature of Wall Street recommendations. Investors should carefully consider these analyst insights while making informed decisions about their portfolios.
