Uber notches upgrade ahead of Q3 earnings: 4 big analyst picks

Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Uber, Moderna , Zillow , and Aptiv.

InvestingPro subscribers got this news first. Never miss another market-moving headline.

Uber earns an upgrade ahead of Q3 earnings

KeyBanc upgraded Uber Technologies (NYSE:UBER) to Overweight from Sector Weight with a price target of $60.00, as reported in real-time on InvestingPro.

Uber's stock climbed over 6% yesterday following an announcement by New York's attorney general that the ride-sharing company will pay a $290 million settlement to conclude a multi-year investigation. The investigation had accused Uber of systematically cheating drivers out of pay and benefits.

The company is set to report its Q3/23 earnings on Nov 7. Street estimates stand at $0.07 for EPS and $9.54 billion for revenues.

Moderna raised to Hold at HSBC

HSBC upgraded Moderna (NASDAQ:MRNA) to Hold from Reduce with a price target of $69.00 (from $89.00) following the company’s reported Q3 results yesterday.

Moderna posted Q3 EPS of ($9.53), significantly worse than the consensus estimate of ($1.90), impacted by a $3.1 billion charge related to resizing and a tax valuation allowance. It includes $1.3B for inventory write-downs related to excess and obsolete COVID-19 products.

The company sees fiscal 2023 revenue of at least $6B, compared to the consensus of $6.45B, reflecting weaker demand for COVID-19 vaccines. Additionally, Moderna has delayed the launch of its flu shot to 2025, previously scheduled for 2024. As a result, shares plunged more than 6% yesterday.

"The company’s medium-term revenue is still driven by its respiratory vaccines, where the dynamic will gradually shift from COVID-19 towards RSV and combo vaccines. Moderna plans to launch its RSV vaccine in 2024,” commented HSBC.

Zillow raised at CFRA following Q3 earnings

CFRA upgraded Zillow (NASDAQ:ZG) Group (NASDAQ:Z) to Strong Buy from Buy with a price target of $47.00.

Shares fell more than 2% yesterday following the company’s reported Q3 results. Revenue grew 3% year-over-year to $496 million, beating the consensus estimate of $481.06M. Meanwhile, the residential revenue of $362M fell 3% year-over-year, although it outperformed the high end of the company's expectations.

Aptiv upgraded at Piper Sandler following the Q3 report

Piper Sandler upgraded Aptiv (NYSE:APTV) to Neutral from Underweight with a price target of $80.00 (from $82.00) following the company’s reported Q3 beat. However, the market reacted negatively to the quarterly report, with the stock dropping more than 10% yesterday.

According to Piper Sandler, this downturn is seen as a continuation of a sell-off trend that started in August. Considering Aptiv's stock is now hovering near the revised price target of $80, the analysts believe it is time to temper its bearishness, hence the upgrade to a Neutral rating.

“We still doubt Aptiv's ability to achieve long-term operating margin guidance of ~17%, but we also think investors are fretting too much about a delay in electric vehicle launch activity. Our estimates are moving downward to reflect a slower EV ramp, but not by enough to justify staying Underweight," commented Piper Sandler.

In fast-moving markets, every second counts - and InvestingPro subscribers are always one step ahead with lightning-quick updates.

Start your free 7-day trial now.