Analysts are intrested in these 5 stocks: ( (GM) ), ( (JBLU) ), ( (DG) ), ( (DLTR) ) and ( (PINS) ). Here is a breakdown of their recent ratings and the rationale behind them.
General Motors is facing a challenging road ahead as analysts have downgraded the stock to ‘Sell’ with a target price of $35. The primary concern is the impact of vehicle and parts tariffs, which are expected to significantly reduce free cash flow and earnings per share by 2026. The company is also grappling with softening consumer sentiment and a potential recession, which could further pressure its stock. Analysts expect GM to pause buybacks and lower guidance as it navigates these headwinds. The only potential upside would be an unexpected reversal of tariff policy, but in the near term, the outlook remains bleak.
JetBlue Airways, on the other hand, has been upgraded to ‘Buy’ with a target price of $5, as analysts see it as a tactical opportunity following a recent selloff. The airline is considered a low bankruptcy risk and a potential M&A target due to its valuable assets at JFK and FLL. Despite risks like earnings misses and pricing pressures, JetBlue’s liquidity position and attractive asset base make it a compelling choice for investors looking to capitalize on market volatility. The stock is expected to be range-bound between a hypothetical takeout value floor and a ceiling based on its convertible bonds.
Dollar General has seen mixed analyst opinions, with one upgrading it to ‘Hold’ and another to ‘Buy.’ The company is perceived to have a better position in the current retail landscape due to its low tariff exposure and value-oriented business model. Analysts believe that Dollar General will benefit from consumers trading down in a weakening economy. The potential closure of Family Dollar stores could also boost Dollar General’s market share. With a target price of $101 to $110, analysts see upside potential as the company focuses on improving its return on invested capital and capitalizing on market dynamics.
Dollar Tree has been upgraded to ‘Buy’ with a target price of $103, as analysts view it as a dark horse winner in the new tariff environment. The company plans to increase its base price points, which is expected to be accepted by consumers. Dollar Tree’s ability to navigate higher costs with price increases is seen as a positive, and its value-oriented positioning is expected to attract consumers amid rising retail prices. The stock is considered undervalued, with analysts highlighting its potential to benefit from a higher tariff regime and improve its sales productivity and margins.
Pinterest has been downgraded to ‘Hold’ due to concerns about macroeconomic exposure and softening consumer sentiment. Analysts have noted weaker-than-expected trends in key categories like beauty and home, which could impact Pinterest’s results. The uncertainty surrounding tariffs is likely to weigh on discretionary spending, affecting Pinterest’s advertising revenue. While the company has a strong management team and shopping strategy, the current environment poses challenges, leading to a cautious outlook with a fair value near $25.