By Davit Kirakosyan
Investing.com -- Here is your daily Pro Recap of the biggest analyst picks you may have missed since yesterday: Rating bumps at Netflix, ExxonMobil, and several other stocks.
As always, InvestingPro subscribers got this news first. Start your free 7-day trial to get on board.
Netflix upgraded at UBS following Q1 revenue & guidance miss
UBS upgraded Netflix (NASDAQ:NFLX) to Buy from Neutral and raised its price target to $390.00 from $350.00 following the company’s reported worse-than-expected Q1 revenue results and guidance yesterday.
The company reported Q1 revenue of $8.16 billion, below the consensus of $8.17B, while EPS of $2.88 came in better than the consensus of $2.86. Global streaming paid net additions were 1.75 million, missing the consensus estimates of around 2.41M.
For Q2, the company expects revenue of $8.24B, below the consensus estimate of $8.47B.
Shares are currently trading just around 1% lower pre-market, after recovering from a nearly 11% after-hours loss.
UBS sees Netflix as the main beneficiary of easing competition in DTC as peers focus on profits, noting it believes this will drive upside to subs/pricing power in the coming years while also keeping a lid on content costs.
The firm expects Netflix revenue growth to re-accelerate to 10%+ while driving 200-300 bps of annual margin expansion amid relatively stable content spend. UBS anticipates this will drive a 20%+ profit CAGR and $6.1B/$8.4B of FCF in 2024/2025.
ExxonMobil upgraded to Buy ahead of the Q1 report
UBS upgraded ExxonMobil (NYSE:XOM) to Buy from Neutral and raised its price target to $144.00 from $125.00.
The company is set to report its Q1/23 earnings results on April 28. Consensus estimates stand at $2.61 for EPS and $82.66B for revenues.
JMP Securities upgrades LegalZoom.com, says share gains can accelerate through 2023
JMP Securities upgraded LegalZoom.com (NASDAQ:LZ) to Market Outperform from Market Perform with a price target of $14.00 as the company has fully rolled out “free” in its marketing, which the firm believes can accelerate share gains through 2023.
According to the firm, improved freemium attach rates, improving share gains (including Q1/23 traffic share), and continued expense discipline have alleviated the concerns it had at the time of the downgrade.
Shares closed more than 9% higher yesterday.
2 more upgrades
Mizuho Securities upgraded Immuneering (NASDAQ:IMRX) to Buy from Neutral and raised its price target to $20.00 from $10.00 following a presentation of IMM-1-104 data at AACR, which resulted in a share price gain of more than 9% yesterday.
Meanwhile, Morgan Stanley upgraded the company to Equalweight from Underweight and raised its price target to $14.00 from $5.00.
Baird upgraded Global Payments (NYSE:GPN) to Outperform from Neutral and raised its price target to $156.00 from $130.00.
The company will report its Q1/23 earnings results on May 4. Consensus estimates stand at $2.30 for EPS and $2B for revenues.
