Analyst Upgrades Add Fuel to Holdings as Wall Street Raises Price Targets
As firms up targets on five Pro Portfolio names, we’re contemplating boosting two of them.
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While the market waits for the December Employment Report, let’s review what Wall Street had to say about Pro Portfolio holdings over the last few days.
In today’s Pro Portfolio video, we shared that Deutsche Bank resumed coverage on Costco (COST) shares with a Buy rating and a fresh $1,044 price target. The firm also resumed coverage of TJX Companies (TJX) with a Buy and a target of $184.
UBS also increased its TJX price target to $193 from $181. If we see President Trump’s $2,000 stimulus check become a reality, it would give us a reason to revisit our TJX target, which currently sits at $165, not too far from the market consensus one.
TD Cowen boosted its American Express (AXP) target to $375 from $350, but remember, we upped our AXP target to $385 in early December. The shares have also increased in position size to 4.4% of the Portfolio, reflecting the almost 30% gain we have seen in the position. Should AXP move past the 4.5% level, our discipline will lead us to do some register ringing. While AXP's rise may not be as big as the recent gain of 98.85% we booked when trimming back our Bank of America (BAC) position, it would still be a pretty sweet profit for us. Also, based on upcoming membership card metrics, we’ll revisit our $400 target as needed.
Cantor Fitzgerald upgraded Alphabet (GOOGL) to an Overweight rating from Neutral with a renewed price target of $370, up from $310. In our note Wednesday, we explained our thinking that Wall Street may have underestimated Google and that could set up a nice upside surprise when it reports later this month. Should that be the case, and depending on its drivers, we may need to revisit our $350 target. And if we do, there will be more than a few joining us, given that the current market consensus target is at $334.
Wolfe Research upped its Morgan Stanley (MS) target to $211 from $198, calling the shares its top pick in the space. As the IPO market picks back up and as we digest the start of bank earnings next week, we’ll look to revisit our $185 target for MS. Yes, we’re aware the shares are trading around that level today, but we also know that before Morgan Stanley reports next Thursday, JPMorgan Chase (JPM) reports Tuesday, and Bank of America and Citigroup (C) on Wednesday.
At the time of publication, TheStreet Pro Portfolio was long COST, TJX, AXP, BAC, GOOGL and MS.
