HP raised to Outperform, Snap surges on upgrade: 4 big analyst picks

Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed today: upgrades at HP, Snap, Pinterest, and Best Buy.

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HP raised to Outperform

Evercore ISI upgraded HP (NYSE:HPQ) to Outperform from In Line and raised its price target to $40.00 from $33.00. As a result, shares rose more than 1% pre-market today.

The analysts' optimism is based on multiple factors that they believe could power HP's EPS to over $4.00 in the next 12 to 24 months. This potential growth is attributed mainly to share buybacks and operational expense control rather than increased revenue.

The analysts also noted the anticipated recovery of the PC market in 2024, with HP being particularly well-positioned due to its significant presence in the commercial PC sector. Furthermore, the profitability of HP's print division is expected to remain strong, thanks to effective strategy and cost management.

In terms of valuation, the analysts noted that HP is currently trading below its historical averages and those of its peers, suggesting room for growth.

Snap shares surge on Wells Fargo upgrade

Snap (NYSE:SNAP) shares gained more than 5% pre-market today after Wells Fargo upgraded the company to Overweight from Equal Weight and raised its price target to $22.00 from $8.00, as reported in real-time on InvestingPro.

This upgrade reflects improvements in Snap's advertising sector for the first time since Apple (NASDAQ:AAPL)'s privacy changes in April 2021.

The analysts highlighted Snap's reinvestment in its advertising technology, new ad management initiatives, and a renewed focus on its core business. They predict higher revenue growth than the Street's estimates, at 19% and 18% for 2024 and 2025, respectively.

Furthermore, the analysts forecast a substantial rise in Snap's EBITDA for these years, significantly above Street expectations, given a renewed focus on cost discipline.

Two more upgrades

RBC Capital upgraded Pinterest (NYSE:PINS) to Outperform from Sector Perform and raised its price target to $46.00 from $32.00. Shares rose more than 3% pre-market today.

The analysts highlighted Pinterest as a standout choice for investors seeking alternatives to mega-cap companies in 2024. They point out the platform's potential to capture a significant portion of the $241 billion ad spend on impulse shopping through intent-based ad platforms.

“Liked by the sell-side but under-owned by the buy-side, we believe PINS is an attractive story underpinned by checks indicating key product cycles starting to work, positive ad load analysis, attractive comps and is a less consensus/partially hedged way to play AMZN,” commented RBC.

Best Buy (NYSE:BBY) shares gained more than 2% pre-market today after Jefferies upgraded the company to Buy from Hold and raised its price target to $89.00 from $69.00.

'24 won't be a banner year, but investor expectations for neg. MSD% comps are conservative given DD% and near HSD% declines in '22 + '23, respectively. With conviction in a replacement cycle for pandemic buys starting soon + reassurance in market share, we upgrade to Buy.

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