Investing.com — Here’s your Pro Recap of the best takeaways from Wall Street analysts over the past week.
InvestingPro subscribers always get first dibs on market-moving AI analyst commentary. Upgrade today!
Netflix
What’s going on? On Monday, Loop Capital downgraded Netflix (NASDAQ: ) to Hold with a price target of $950.
*TLDR: Netflix is poised for growth; measurement concerns persist.
What is the full story? Loop summarized that Netflix is admirably positioned, showing more than 30M new subscribers this year, second only to the 2020 pandemic. Revenues have returned to mid-teens growth, and operating margins are expected to rise 600bps in 2024, with management continuing to upgrade guidance for the previous four quarters. A significant increase in Q4 subscribers was expected due to high-profile events such as the Paul/Tyson game and the NFL Christmas games featuring Beyoncé.
Co-CEO Ted Sarandos expressed strong optimism about the 2025 content plan, which he called the strongest since he began planning. Despite not raising its most popular American pricing tier in nearly three years, Netflix remains competitively priced. However, due to historical multiples of high valuation, Loop cut Netflix to hold shares close to fair value.
Hold at Loop Capital means “The stock is expected to perform in line with the market or peer stocks over the next 12 months.”
Tesla
What’s going on? on tuesday, Mizuho (NYSE:) upgraded Tesla Inc (NASDAQ:) to Outperform with a target price of $515.
*TLDR: Mizuho boosts Tesla, sees significant upside. The target price rose to $515.
What is the full story? Mizuho’s development comes over mysterious storms over the next four years. The company notes that the loosening of Autonomous Driving regulatory frameworks provides more value for FSD/Robotaxi, the new Trump administration policies position Tesla better with a lower EV cost structure compared to peers, and TSLA will outsource global EV production which is more profitable. roadmap with low-cost Model Q/Cybercab by 2026-2027.
Mizuho’s SOTP estimate means about $1.8 trillion for Tesla, with core vehicles, power, and other components valued at $711 billion, FSD and Robotaxi worth $614 billion to $896 billion, and humanoid robots of -$472 billion has the potential to reach $740 billion. As a result, Mizuho raised its price to $515 from $230, in line with its valuation, driven by positive valuations and new management and FSD/Robotaxi prospects, despite near-term challenges from EU tariffs and the repeal of EV debt .
Outperformance at Mizuho means that “The stock’s total return is expected to exceed the unweighted, expected total return of the analyst’s industry over the next 12 months. “
Financial Citizens
What’s going on? Wednesday, Raymond (NS:) James has been upgraded twice Company Citizens Financial Group Inc (NYSE:) to Strong Buy with a price target of $55.
*TLDR: Raymond James on CFG, raising NIM/NII. Profits are expected to rise.
What is the full story? Raymond James reports that headwinds from the exchange rate gains are expected to decrease, increasing CFG’s net interest margin (NIM) and net interest income (NII). The company expects capital markets spending to rise, above current expectations as the environment improves for mergers and acquisitions (M&A) and capital raising. The private banking system is expected to see a quick profit, while debt concerns seem negative as metrics may improve due to contract levels and a decrease in contributions from the startup portfolio.
As a result, analysts are bullish on CFG shares, citing the reduced valuation as an attractive entry point for the bank that is well-positioned to improve its profitability and earnings per share (EPS) growth going forward.
Strong Buy at Raymond James says “The security is expected to inform and generate a total return of at least 15% and outperform the S&P/TSX Composite Index over the next six to 12 months. “
Company Oklo Inc.
What’s going on? On Thursday, Wedbush initiated Oklo Inc (NYSE:) at Outperform with a target price of $26.
*TLDR: Wedbush highlighted Oklo’s strong position. AI-driven demand increases Oklo’s opportunities.
What is the full story? Wedbush noted that Oklo, a Santa Clara-based SMR manufacturer founded in 2013, aims to develop its first small reactor by 2027. Backed by Sam Altman, Oklo’s Aurora microreactor, estimated at 100MW, will operate for more than 10 years before refueling.
Oklo’s project pipeline was 93 percent ahead of its 2027 deployment plan, with data centers counting most of its capacity under target.
Analysts highlighted Oklo’s unique business model, which it owns and operates, selling energy directly to customers under long-term contracts for recurring profits and restructuring. Although still in the pre-revenue stage, Oklo plans to accelerate additional revenue streams, including recycling, following the acquisition of Atomic Alchemy.
The AI revolution and the growing demand for clean energy puts Oklo in a strong position to capitalize on this high demand.
Outperform to Wedbush means “Expect the stock’s total return to outperform relative to the average total return of the analyst universe (or analyst team) over the next 6-12 months.
Power of PBF
What’s going on? On Friday, TD Cowen downgraded PBF Energy Inc (NYSE: ) to Sell with a $20 target price.
*TLDR: TD Cowen noted the weak performance of PBF’s refining. Exposure to the West Coast is viewed as damaging.
What is the full story? TD Cowen noted that PBF has shown lower refining results than peers per barrel over the past 1.5 years, due to its more expensive refining system and weaker light/heavy differential. Analysts noted that PBF’s significant exposure to the West Coast could be dangerous by 2025, given the increase in renewable diesel imports and the continued erosion of fuel demand. TDC values PBF based on 50/50 NPV of FCF to 2026 at 10% yield and NPV of EBITDA at 6x, with 2026 as the mid-cycle year.
The estimate included cracks $1/bbl lower than the line in 2025, $1/bbl higher in 2026, and normal heavy/light differentials. TD Cowen also highlighted that PBF was currently trading at 5.5x EV/EBITDA in 2026, accounting for capital structure changes, in line with historical trading range, despite limited FCF generation.
Sell at TD Cowen says “The stock is expected to have a total return of -10% or less over the next 12 months.”
