InvestingPro Top Wall Street Analyst Recap: Palantir, Starbucks, DoorDash, Wynn Resorts
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Palantir Technologies: Raymond James downgrades Palantir due to valuation concerns.
TLDR: Raymond downgrades Palantir on valuation following significant stock gains in 2024.
Raymond James remains positive on Palantir's long-term AI potential but downgrades to Market Perform from Outperform. The stock has surged over 120% year-to-date and needs to consolidate gains. The S&P 500 inclusion catalyzed a 23% increase recently.
Starbucks: Jefferies lowers Starbucks to Underperform on strategic execution challenges.
TLDR: Jefferies downgrades Starbucks due to operational issues and low EPS growth.
Jefferies expects reset F25 guidance and a 20% downside potential. The brokerage sees challenges in operations, culture, and technology.
DoorDash: Keybanc upgrades DoorDash to Overweight, favoring it over Uber.
TLDR: Keybanc projects strong growth for DoorDash, with higher EBITDA estimates.
Keybanc sees continued rise in food delivery usage and increased market share for DoorDash. They anticipate robust growth in core business and new verticals.
Starbucks: Bernstein-SocGen upgrades Starbucks to Outperform, focusing on balanced growth.
TLDR: Starbucks aims for balanced growth under new CEO, appealing to long-term investors.
Bernstein-SocGen anticipates operational improvements and margin growth under CEO Brian Niccol. They expect positive sales growth and improved margins.
Wynn Resorts: Morgan Stanley upgrades Wynn to Overweight on favorable risk-reward.
TLDR: Wynn Resorts has low valuation and growth potential in UAE.
Morgan Stanley sees strong performance in Las Vegas and Boston aiding cash flow. China recovery remains crucial.
In summary, analysts are adjusting their ratings on these companies based on various factors such as valuation, growth potential, and operational challenges. Investors should consider these insights when making investment decisions to maximize returns and minimize risks. Morgan Stanley Predicts Wynn to Quickly De-Lever and Grow with New Projects in 2025
In a recent report, Morgan Stanley projects that Wynn will reduce its leverage ratio to less than 16x by the end of 2022, despite higher consolidated leverage estimated to be around 4x by 2024. Looking ahead to 2025, the bank estimates that Wynn's geographic EBITDA exposure will be 50% from Macau, 40% from Las Vegas, and 10% from Boston. Additionally, a new project in the UAE is seen as a potential growth catalyst for Wynn.
Being overweight at Morgan Stanley means that the stock's total return is expected to exceed the average total return of the analyst's industry coverage universe on a risk-adjusted basis over the next 12-18 months.
Analysis:
In simple terms, Morgan Stanley is optimistic about Wynn's future performance despite its current leverage levels. The bank believes that Wynn will reduce its debt burden and continue to grow with new projects in different regions. This could potentially lead to higher returns for investors who hold Wynn stock.