Recently published reports by prominent investment and research firms, as highlighted by Barron’s, offer valuable insights into several notable stocks:
- Exxon Mobil (XOM) – Buy
UBS asserts that Exxon Mobil is their top pick among oil companies for the next five years. They emphasize five key drivers that could boost value and earnings independently of oil price movements. These drivers include anticipated growth in upstream production volumes, significant potential earnings from new downstream projects, substantial cost-cutting initiatives, and a strong balance sheet that supports increased returns to shareholders. UBS sets a price target of $154, reflecting their bullish outlook on Exxon Mobil’s prospects. - Campbell Soup (CPB) – Overweight
J.P. Morgan upgraded Campbell Soup’s stock from Neutral to Overweight following a recent meeting with the company’s top executives. They highlight three primary reasons for their optimism: robust consumer demand for Sovos Brands products, potential synergies exceeding initial expectations, and anticipated efficiency improvements in the Meals & Beverages segment. While J.P. Morgan maintains a conservative growth estimate of 6% to 8% for CPB’s earnings per share (EPS) over the next few years, they express confidence in the company’s ability to achieve consistent growth within this range. Their price target for Campbell Soup by December 2025 is set at $52. - Rivian Automotive (RIVN) – Outperform
Wedbush raised its price target on Rivian from $15 to $20 while maintaining an Outperform rating, driven by a significant joint venture announcement with Volkswagen Group. This partnership aims to develop software-defined vehicle platforms for future electric vehicles, leveraging Rivian’s advanced technology. With Volkswagen committing a substantial $5 billion investment, the joint venture is expected to accelerate both companies’ electric vehicle strategies. Wedbush views this collaboration as a transformative development for Rivian, enhancing its market position and technological capabilities. - Kyndryl Holdings (KD) – Outperform
Oppenheimer initiated coverage on Kyndryl Holdings with an Outperform rating, highlighting the company’s potential for significant growth following its spinoff from IBM. They note Kyndryl’s successful repricing of legacy contracts, strategic agreements with major hyperscalers, and robust growth in its consulting business. These factors are expected to drive top-line growth, improve margins, and transform Kyndryl into a compelling investment opportunity. Oppenheimer sets a price target of $33, optimistic about Kyndryl’s prospects in the IT services infrastructure sector. - Brinker International (EAT) – Buy
Stifel reiterates its Buy rating on Brinker International, emphasizing the company’s promising growth prospects driven by strategic initiatives at its flagship brand, Chili’s. Stifel’s confidence stems from Chili’s revamped marketing efforts, which they believe can sustain durable same-restaurant sales growth in the low to mid-single digits. Additionally, they see potential for improved sales and margin performance at Maggiano’s under new leadership. With the stock trading near all-time highs, Stifel sets a price target of $90, expecting continued momentum from Brinker International’s operational improvements. - Celsius Holdings (CELH) – Hold
Truist initiates coverage of Celsius Holdings with a Hold rating, accompanied by a 12-month price target of $60. Truist acknowledges Celsius’s potential for outsize growth relative to its industry peers due to expanded distribution channels and increased household penetration for its energy drinks. However, they caution that achieving further market share gains may pose challenges amid competitive pressures in the energy drink sector. Truist suggests that investor sentiment towards energy drink stocks needs stabilization before revising their rating on Celsius Holdings.
These comprehensive analyses provide valuable perspectives for investors considering these stocks, highlighting key growth drivers, strategic developments, and potential risks within each company’s respective market landscape.