BofA Securities analyst Ronald J. Epstein has upgraded L3Harris Technologies (LHX) to ‘Buy’ from ‘Neutral’, citing the company’s impressive transformation initiative, ‘LHX Next’, and its strong position in the booming missile and munitions market. The analyst also highlights L3Harris’ strategic partnership with Palantir Technologies (PLTR) and its significant cost-saving initiatives, leading to a raised price target of $300.
Results for: BofA Securities
Incyte Corporation (INCY) reported robust third-quarter revenue, exceeding analyst expectations driven by strong demand for its key drug, Jakafi. The company’s optimistic outlook for Jakafi and its pipeline prospects led BofA Securities to upgrade Incyte’s stock to Buy, highlighting the potential for continued growth and multiple catalysts in the coming years.
BofA Securities has upgraded Tyra Biosciences, a clinical-stage biotech company, from Neutral to Buy, citing promising preclinical data for their drug TYRA-300 and its potential to treat urothelial carcinoma. The upgrade comes ahead of the presentation of phase 1/2 data at the ENA Meeting next week. BofA’s bullish outlook is based on the drug’s differentiated safety profile compared to existing treatments, leading to projected sales of $175 million by 2030.
BofA Securities analyst Christopher Nardone maintains a Buy rating on Crocs (CROX), projecting strong earnings growth driven by international performance and a conservative fourth-quarter outlook. The analyst is optimistic about Crocs’ future despite potential challenges in North America and the shift to direct-to-consumer sales.
BofA Securities analyst Lorraine Hutchinson reaffirms a Neutral rating on Ulta Beauty, Inc. (ULTA) with a price target of $380. While the analyst lowered the FY25 EPS estimate due to anticipated slower growth, the company remains optimistic about its long-term prospects, emphasizing initiatives to strengthen its market position and reignite growth. Ulta Beauty also announced a new $3 billion share buyback program, projected to contribute significantly to EPS growth.
Yum China Holdings Inc. (YUMC) stock has been volatile in 2023, exhibiting both short-term bearish and long-term bullish trends. While technical indicators show near-term selling pressure, BofA Securities has raised its price target on the stock due to strong sales growth and a favorable exchange rate. Yum China’s aggressive share buyback program and its stake in Meituan also contribute to a positive outlook. However, investors should be aware of the mixed signals and potential challenges.
BofA Securities analyst Justin Post reiterated a ‘Buy’ rating on Alphabet Inc. (GOOGL, GOOG) with a price target of $206, highlighting the company’s strong AI capabilities and growth prospects. Post believes Alphabet is well-positioned for long-term success with its leading AI technology, particularly in areas like search, YouTube, and cloud computing.
BofA Securities has upgraded Kinder Morgan (KMI), an energy infrastructure company, to a Buy rating citing a stabilized base business and potential growth in contracted natural gas pipelines. The analyst expects increased demand driven by Gulf Coast LNG projects and the electrification of utilities through AI, positioning Kinder Morgan for long-term growth.
BofA Securities analyst Jessica Reif Ehrlich downgraded Warner Music Group (WMG) from Neutral to Underperform, citing concerns about the company’s long-term growth outlook and execution risks. The analyst believes the music industry’s growth potential may be less predictable than initially anticipated, and the company’s recent restructuring efforts could lead to execution risks. Ehrlich also lowered her revenue and OIBDA estimates for the fourth quarter and fiscal year 2025.
BofA Securities analyst Michael McGovern believes Carvana is well-positioned for long-term growth in the fragmented used car market. He expects the company to continue improving unit economics and leverage as growth accelerates, leading to a projected 2025 revenue of $15.45 billion and EBITDA of $1.50 billion.