Analysts are intrested in these 5 stocks: ( (PCG) ), ( (TSLA) ), ( (MSTR) ), ( (IP) ) and ( (FCX) ). Here is a breakdown of their recent ratings and the rationale behind them.
PG&E’s stock has recently been downgraded by analyst Gregg Orrill from a Buy to a Hold, with a reduced price target of $19 from $22. The downgrade is attributed to the lack of catalysts, potential depletion of California’s wildfire insurance fund, and the absence of a clear path to rerate the stock. Despite these challenges, PG&E has shown a strong wildfire mitigation record and a 9% EPS growth. However, the risk and reward are seen as balanced at this time, with upcoming events like the general rate case filing and legislative milestones that could impact the stock’s outlook.
Tesla has received an upgrade from analyst Andres Sheppard to a Buy, with a maintained price target of $425. The upgrade follows a visit to Tesla’s headquarters and highlights upcoming catalysts such as the introduction of the Robotaxi segment, FSD rollout in China and Europe, and the launch of a lower-priced vehicle. Despite a recent selloff, these developments present an attractive entry point for investors. Tesla’s advancements in self-driving technology and energy storage are expected to drive future revenue growth, positioning the company well in the autonomous vehicle market.
Strategy, formerly known as MicroStrategy, has been initiated at a Hold by analyst Gustavo Gala, with a fair value of $200 per share. The company’s valuation is closely tied to its Bitcoin holdings, and the report suggests that there are cheaper ways to express optimism on Bitcoin. The underlying business intelligence software segment is shrinking, and the company’s strategy of converting fiat to Bitcoin is seen as novel but not yet materialized into new revenue streams. The report questions the premium at which Strategy trades compared to other holding instruments.
International Paper Co has been initiated with a Buy rating by analyst Detlef Winckelmann, with a price target of $59. The company is undergoing a transition to improve profitability under new CEO Andy Silvernail. The 80/20 strategy aims to enhance profitability by aligning costs and services with contract profitability. The integration of DS Smith is expected to bolster IP’s presence in Europe. While there are execution and timing risks, the company’s balance sheet flexibility for shareholder returns and potential market consolidation in Europe are seen as positives.
Freeport-McMoRan has been upgraded to a Buy by analyst Bill Peterson, with a price target of $52. The upgrade is based on the expectation that tariff risks and global supply challenges will maintain premium pricing for the company’s US-based operations. The company’s exposure to US copper tariffs is expected to benefit its bottom line, and longer-term supply deficits are anticipated to support copper pricing. Freeport’s strong cash flow generation and project pipeline are seen as drivers for future growth, making it an attractive investment opportunity.
Questions or Comments about the article? Write to editor@tipranks.com