As the COVID-19 vaccinations continue to roll out and the White-House-backed huge pandemic relief bill inches its way through Congress, many investors and analysts are looking to position themselves for a reopening and recovery of the U.S. economy.
Raymond James recently issued its most recent list of Analyst Current Favorites stock picks, and a number of the recommendations play right into the reopening theme. They include Alaska Air, Dave & Buster’s Entertainment and Diamondback Energy, all in sectors that struggled through the past year.
Oppenheimer also has added Papa John’s International to its top picks list for similar reasons. That is, the firm likes its prospects post pandemic.
24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding new ideas for investors and traders alike. Many of the calls seen in the past week play right into this reopening and recovery theme. Here are seven of them.
Airbnb
On Monday, Loop Capital upgraded Airbnb Inc. (NASDAQ: ABNB) from Hold to Buy with a $240 price target. Then on Friday, after the travel marketplace operator posted mixed quarterly results, Canaccord Genuity reiterated its Buy rating and raised its $175 price target to a street-high $270.The consensus target price was last seen at $163.56 per share.
The stock popped about 5% in the past week, though it is still shy of its post-IPO high of $219.94. Shares have traded as low as $121.50 since coming public back in December, and the share price is up more than 40% since the beginning of the year.
American Airlines
Also on Monday, Deutsche Bank upgraded American Airlines Group Inc. (NASDAQ: AAL), along with several of its peers. The firm raised American from Hold to Buy with a $23 price target. Stifel raised its target to $20 this week too. The consensus target for the carrier is a much lower $12.59. Half of the 18 analysts surveyed recommend buying shares
The stock has pulled back a bit from the recent year-to-date high of $22.80 per share, but it is still well up from the 52-week low of $8.25 seen last May. The share price is almost 33% higher year to date, while the S&P500 has seen less than a 2% gain in that time.
American Eagle Outfitters
Cowen’s upgrade of mall-based retailer American Eagle Outfitters Inc. (NYSE: AEO) came on Wednesday. The firm lifted its Market Perform rating to Outperform with a street-high $31 price target. RBC upgraded the shares to Outperform with a $30 price objective late last month. The posted consensus target is $27.31. Note that the analysts’ consensus buy recommendation is a weak one.
The company is due to post fiscal fourth-quarter report this week, and results are forecast to be a little weaker than a year ago. Shares saw a 52-week high of $27.10 this past week, which is well up from the $6.54 52-week low. The stock is about 28% higher since the start of the year.
Expedia
Expedia Group Inc. (NASDAQ: EXPE) saw an upgrade from Argus, from Hold to Buy with a street-high $188 price target, on Thursday. Deutsch Bank was only willing to boost its price objective to $148, which is less than the consensus target price of $154.92. Still, the consensus recommendation is to buy shares, with analysts increasingly positive in the past two months.
The stock has been on the rise since the panic selling of last spring and reached a multiyear high of $166.57 this past week. Since the beginning of this year, shares have seen a gain of more than 21%. The Nasdaq is more than 2% higher year to date.
Marathon Petroleum
Morgan Stanley upgraded Marathon Petroleum Corp. (NYSE: MPC) from Neutral to Overweight with a $67 price target on Monday. On Thursday, Wells Fargo boosted its target to $66, while maintaining an Overweight rating. Of the 19 analysts surveyed, 14 recommend buying the shares. The $53.79 consensus target for the oil refining giant is less than the most recent share price.
Marathon had a refinery shut down due to the recent winter storm in Texas. Yet, shares ended the past week near $55, which is about 33% higher than at the beginning of the year. The stock has traded in a 52-week range of $15.26 to $56.99. That high was seen this past week.
MGM Resorts
Argus upgraded MGM Resorts International (NYSE: MGM) from Hold to Buy with a $42 price target on Tuesday. Furthermore, Morgan Stanley and Stifel hiked their price targets to $34 and $40, respectively, earlier this month. But note that the consensus price target of $33.21 is less than the most recent price. Yet, all but four of the 17 analysts surveyed recommend buying shares, and here too the sentiment is rising.
On Tuesday, the share price hit a 52-week high of $39.91, but the stock ended the week trading below $38. The shares have changed hands as low as just $5.90 apiece in the past year. Note that the stock is up more than 16% year to date, well outperforming the broader markets in that time.
Starbucks
Starbucks Corp. (NASDAQ: SBUX) saw an upgrade to Outperform from Market Perform at BMO Capital Markets on Tuesday. The firm also raised its price target on the shares to $120. Gordon Haskett upgraded the stock to Buy earlier this month. The consensus target for the ubiquitous coffee retailer is $109.53. Analysts on average recommend buying the shares, and the sentiment has grown in the past month.
While the stock has trended upward since last September, it is only marginally higher year to date, but in the same ballpark as the S&P 500. The share price added about 5% in the past week and hit a 52-week high of $109.48 on Friday. The 52-week low of $50.02 was seen during the market sell-off last March.
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