4 big analyst picks: Wall Street warms up to Shopify after Q1 | Pro Recap

Investing.com -- Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Shopify, SolarEdge, Verisk Analytics, and Procore Tech.

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Shopify snaps up 2 upgrades on Q1 beat

Shopify (NYSE:SHOP) was upgraded by both CFRA and BofA Securities following the company’s reported better-than-expected Q1 results, announcements of a 20% workforce reduction, and the sale of its capital-intensive logistics business to Flexport. As a result, shares jumped more than 23% yesterday.

CFRA upgraded the company to Buy from Hold and raised its price target to $68.00 from $50.00 on higher estimates due to growth and a greater focus on profitability/FCF. According to the firm, the job cuts and a logistic business sale are game changers and will help drive sustainable positive FCF growth on sharply lower planned capex and opex.

Meanwhile, BofA Securities upgraded to Neutral from Underperform and raised its price target to $70.00 from $45.00.

SolarEdge upgraded to Buy as previous concerns on costs have faded

Deutsche Bank upgraded SolarEdge Technologies (NASDAQ:SEDG) to Buy from Hold and raised its price target to $375.00 from $305.00, noting it is increasingly constructive on the name, given previous concerns around cost control, better geographic localization of its supply chain and margin pressure have faded away.

Shares gained more than 6% yesterday after the company reported better-than-expected Q1 earnings.

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2 more upgrades

BofA Securities upgraded Verisk Analytics (NASDAQ:VRSK) to Buy from Underperform and raised its price target to $243.00 from $167.00 following better-than-expected Q1 earnings.

According to the firm, shares look attractive due to the company’s (1) defensive business model in an uncertain environment, (2) accelerating sales growth, and (3) more focused management and potential for higher returns following recent business exits.

Goldman Sachs upgraded Procore Technologies (NYSE:PCOR) to Buy from Neutral and raised its price target to $75.00 from $63.00 following the company’s reported Q1 results that saw revenue, operating income, FCF, and cRPO all outperform expectations.

Shares gained more than 6% yesterday following the results.

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