Pfizer bags Jefferies buy call after guidance cut: 5 big analyst picks

Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed today: several Buy initiations at Instacart, and upgrades at Pfizer , Wayfair, Nice, and Nucor.

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Pfizer upped Jefferies after guidance cut

Pfizer (NYSE:PFE) shares kicked higher Monday after analysts issued glowing notes after the healthcare giant lowered its revenue and earnings forecasts for the year, given the decline in demand for its COVID-19 treatment, Paxlovid.

Pfizer said it now sees adjusted EPS at $1.55, down from the prior guidance of $3.35. Full-year revenue is now seen at $59.5 billion, down from the previous $68.5 billion.

But some analysts, including those at Jefferies, responded favorably to the revised guidance. Jefferies notably shifted its rating from Hold to Buy with a price target of $39.00 (from $38.00), driven by several key factors: the guidance adjustment is predominantly influenced by Paxlovid, Comirnaty's performance is exceeding buy-side expectations, cost reductions totaling $3.5B make the projected EPS for 2024/5 achievable, there's a promising trajectory of catalysts for investors, and the anticipated closing of the SGEN deal further solidifies their optimistic view.

After a premarket slump, Pfizer shares were up some 5% to $33.74 in recent regular-session trading.

Wayfair shares goosed on upgrade

Wayfair (NYSE:W) shares were rising 1.6% to $48.05 pre-market today after Loop Capital upgraded the company to Hold from Sell and raised its price target of $50.00 from $25.00, as reported in real time on InvestingPro.

Last month the company was upgraded at Bernstein, which moved its rating from Underperform to Market Perform with a price target of $65.00 (from $60.00) on improving revenue growth and margin commentary.

The company is set to report its Q3/23 earnings on Nov 1. Street estimates stand at ($0.48) for EPS and $2.98 billion for revenues.

Instacart gets several buy initiations

Following Instacart's ( Maplebear Inc.) (NASDAQ:CART) IPO last month, numerous Wall Street firms initiated coverage on Monday, primarily rating the company with buy-equivalent ratings.

Citi, for instance, began its analysis of the company with a Buy rating, setting a price target of $34.00. Considering the 12% penetration of Online Grocery (compared to the U.S. e-commerce average of approximately 20%), coupled with Instacart’s strong tech partnerships with many leading U.S. grocers and its coverage of 95% of North American households, Citi analysts think the company has the potential to boost growth as it reinvests in customer acquisition.

Stifel likewise started coverage on the company with a buy rating, setting a price target of $48.00.

And other Wall Street firms - Piper Sandler, JPMorgan, and Barclays - started coverage with Overweight ratings and price targets of $36.00, $33.00, and $40.00, respectively.

Two more upgrades

Morgan Stanley upgraded Nice (NASDAQ:NICE) to Overweight from Equalweight with a price target of $220.00 (from $225.00).

JPMorgan upgraded Nucor (NYSE:NUE) to Neutral from Underweight with a price target of $151.00.

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