America Movil racks up 2 upgrades on dirt-cheap valuation: 4 big analyst picks

Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at America Movil, O'Reilly Automotive, Orange, and Olaplex.

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America Movil picks up two upgrades

BofA Securities upgraded America Movil (NYSE:AMX) (BMV:AMXB) to Buy from Neutral earlier Thursday, closely following Wednesday's UBS upgrade of the company to Buy from Neutral with a price target of $22.00 (from $25.00).

UBS on Wednesday cited improved operations, stronger cash conversion, and attractive valuation multiples, adding that the company is too inexpensive to ignore: "Since August, we've seen (a) MXN -6%, (b) AMX losing ground in the MSCI, and (c) worsening in macro sentiment in MX (IPC -7%). Thus, AMX stock fell 20% in the same period," the analysts wrote.

Shares were dipping slightly in the premarket after a nearly 3% gain in yesterday's trading.

O'Reilly Automotive upgraded ahead of Q3 earnings

O’Reilly Automotive (NASDAQ:ORLY) shares were rising more than 1% pre-market Thursday after Citi upgraded the company to Buy from Neutral and raised its price target to $1,040.00 from $983.00, as reported in real-time on InvestingPro.

The company is set to report its Q3/23 earnings on Oct 25. Street estimates stand at $10.31 for EPS and $4.06 billion for revenues.

Orange gains following BofA’s double-upgrade

Orange (NYSE:ORAN) shares rose more than 2% Wednesday after BofA upgraded the company by two notches - to Buy from Underperform - and raised its price target to $13 from $8.80.

The analysts cited several thematic drivers and financial profiles that investors favor across the European telecom sector, such as improving competitive trends, a path to lower investment needs, in-market consolidation opportunities, infra ownership, and a route to growing dividend returns.

"Orange’s investment case stands out, in our view, as one of the few in the sector that captures all these elements while still at an attractive valuation," wrote the analysts.

BofA pointed to a stabilizing domestic market with improved competition, a head start in the fiber roll-out, direct involvement in Spanish consolidation, and one of the last 100%-owned tower assets with "Totem" as factors they see driving the stock and company's performance.

Olaplex stock surges on Barclays upgrade

Olaplex (NASDAQ:OLPX) shares gained more than 5% Wednesday after Barclays upgraded the company to Equalweight from Underweight.

The analysts believe that Olaplex can stabilize its business, which will likely limit further downside in the stock to some extent. However, they also find it challenging to see significant stock appreciation from this point. One of the key questions for Barclays is how EBITDA margins will ultimately shake out – in other words, they surmise, how much more will the company need to spend to consistently grow in line with the prestige hair care category?

“We are hopeful that the company will be able to provide some degree of guardrails with respect to 2024 when it reports 3Q23 results in November,” wrote Barclays.

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