Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Boeing, Goldman Sachs, KeyCorp, Oshkosh, and ResMed.
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Boeing earns another upgrade
Northcoast Research upgraded Boeing (NYSE:BA) to Neutral from Sell following the company’s reported Q2 earnings last week, as reported in real-time on InvestingPro.
Q2 EPS of ($0.82) and revenue of $19.8 billion came in better than the consensus estimates of ($0.90) and $18.49B, respectively. The company also outlined plans to increase production of its popular 737 MAX narrowbody jet.
Last week, the company was upgraded by BofA Securities, which adjusted its rating to Buy from Neutral with a price target of $300.00 (from $225.00).
Goldman Sachs upgraded to Neutral
Atlantic Equities upgraded Goldman Sachs (NYSE:GS) to Neutral from Underweight and raised its price target to $350.00 from $330.00.
The firm remarked that despite the weak Q2 last month, with EPS down by 60% compared to the previous year, there were positive indicators for Goldman Sachs, such as a 22% year-over-year growth in Equities financing, continued robust growth in Platform Solutions revenues, and effective expense control (excluding impairments).
The strength in the S&P 500 YTD also provides a better jumping-off point for asset management revenues in Q3.
3 more upgrades
JPMorgan upgraded KeyCorp (NYSE:KEY) to Neutral from Underweight and raised its price target to $13.00 from $11.50, noting it sees less risk of an imminent dividend cut.
Previously, the Underweight thesis was driven by concerns that KeyCorp faced an elevated risk of reducing its common dividend due to new capital rules for banks with assets over $100B and its relatively high dividend yield. However, with the new capital proposals allowing banks until mid-2028 to achieve full compliance and a longer timeline than anticipated, KeyCorp now has more flexibility and time to manage this situation without the risk of a common dividend cut.
Baird upgraded Oshkosh (NYSE:OSK) to Outperform from Neutral and raised its price target to $137.00 from $89.00.
Shares jumped more than 10% yesterday after the company reported better-than-expected Q2 results and raised its full-year guidance.
Q2 results demonstrated clear evidence of operational improvement in Vocational with the AeroTech deal closed and Defense turning the corner as well; the earnings ramp potential of the two segments will provide important offsets should Access trends soften, while driving meaningful profit growth should Access prove better than feared.
RBC Capital upgraded ResMed (NYSE:RMD) to Outperform from Sector Perform and raised its price target to $284.00 from $262.00, noting it believes the company has an attractive risk/reward profile.
RBC’s outlook for ResMed is positive due to several factors, including the low OSA penetration rates, improvements in the supply chain of component parts, a backlog of rePAP customers, and the company's strong market position. However, the stock is trading at the lower end of its historical multiples.
In terms of the upcoming Q4/23 results, scheduled to be announced on Thursday, RBC Capital expects the company to post robust revenue growth, although earnings might slightly miss the consensus estimates.
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