Boeing raised to Outperform, MercadoLibre upgraded at BofA: 4 big analyst picks

Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed today: upgrades at Boeing, Affirm, and MercadoLibre , and a Buy initiation at Estee Lauder.

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Boeing gains on RBC Capital upgrade

Boeing (NYSE:BA) shares rose more than 2% pre-market today after RBC Capital upgraded the company to Outperform from Sector Perform and raised its price target to $275.00 from $200.00, as reported in real-time on InvestingPro.

RBC’s report highlighted the early signs of a shift in investor sentiment regarding Boeing's stock. The analysts pointed out Boeing's strong position in the commercial aerospace cycle, despite its stock underperformance in the last two years due to slow FCF improvements.

“However, we believe buy-side expectations for 2024-2025 FCF reflect conservatism, and as execution on the MAX and 787 continue to gradually improve, we believe the potential for positive revisions is growing,” commented the analysts.

RBC expects continued strong demand in both commercial and defense sectors for Boeing, along with improved production and delivery rates, which should bolster investor confidence in Boeing's FCF prospects.

Affirm shares rise 3% following Jefferies upgrade

Jefferies upgraded Affirm (NASDAQ:AFRM) to Hold from Underperform and raised its price target to $30.00 from $9.50. As a result, shares surged more than 3% pre-market today. The analysts mentioned that the stock has seen a 50% decline since Feb 2022, and many of the factors contributing to the previous Underperform rating have now been played out.

Key factors influencing the upgrade include evidence of a stabilizing cost of capital and capital markets activity, improving or at least stable credit performance, and continued growth in the adoption rates for Buy Now, Pay Later (BNPL).

Two more picks

HSBC initiated coverage on Estee Lauder (NYSE:EL) with a Buy rating and a price target of $180.00. Shares rose more than 1% pre-market today.

"Impressive track record came to abrupt end following management missteps. Credibility and share price have taken a hit: time for a reboot. We look at succession planning and M&A options; we think brand equity can be salvaged and sales/margins repaired, though not fully for the latter."

BofA Securities upgraded MercadoLibre (NASDAQ:MELI) to Buy from Neutral and raised its price target to $2,000.00 from $1,350.00. Shares closed with more than a 4% gain yesterday,

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