Netflix in the stratosphere; Best Buy snags Goldman buy call: 4 big analyst picks

Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Netflix, Best Buy , Zscaler, and Xylem.

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Netflix picks up KeyBanc upgrade after Q3 beat

KeyBanc upgraded Netflix (NASDAQ:NFLX) to Overweight from Sector Weight with a price target of $510.00 after Q3 EPS of $3.73 surpassed analyst expectations of $3.49.

The company's revenue matched consensus estimates at $8.54 billion.

Notably, Netflix added 8.76 million new global streaming paid memberships, significantly outperforming the projected 6.2M. The company also said it will start raising its prices, and that it had raised its share-buyback authorization by $10B.

"In our view, Netflix is entering 2024E a cleaner story as: 1) paid sharing appears to have changed Netflix's ability to reach the next ~250M subs; 2) operating profit and FCF are steadily ramping; and 3) buybacks should support a 25%+ EPS growth profile," said KeyBanc.

Shares were jumping 14.2% to $395.35 soon after market open.

Best Buy upgraded to Buy at Goldman

Best Buy (NYSE:BBY) shares were rising nearly 2% Thursday after Goldman Sachs upgraded the company to Buy from Neutral and raised its price target to $85.00 from $79.00, as reported in real-time on InvestingPro.

The analysts highlighted the potential for an upswing in demand that could drive upside, especially through multiple expansion. They emphasized that Best Buy's current market valuation might be undervaluing a potential surge in demand, and factoring worries about consumer health and near-term demand challenges.

“Our view for a potential inflection is supported by recent commentary surrounding stabilizing demand for certain tech products, and we see the potential for demand to stabilize and/or recover next year, supported by innovation and the upgrade/replacement cycle,” commented Goldman Sachs.

Shares were changing hands at $71.50 shortly after market open.

Two more upgrades

Jefferies upgraded Zscaler (NASDAQ:ZS) to Buy from Hold and raised its price target to $225.00 from $170.00. Shares were up 1.8% to $173.41 soon after the opening bell.

Oppenheimer upgraded Xylem (NYSE:XYL) to Outperform from Perform with a price target of $118.00. Shares were climbing 2.4% to $92.50.

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