Markets are still looking for a definitive direction coming out of a tumultuous summer and investors are playing the same game looking for return wherever they can get it. While there is a lot of uncertainty about where things will go from here, one big Wall Street name has identified a few companies that could outperform in the weeks and months ahead.
Barclays has issued a few calls across multiple industries, where it sees significant upside. Considering the current inflationary climate within the market, finding upside is key to keeping pace along with the recovery from the market lows this summer.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Caesars Entertainment
Caesars Entertainment, Inc. (NASDAQ: CZR): Barclays’ Brandt Montour was the lead analyst on the call and he reiterated an Overweight rating and raised the price target to $65 from $56, implying upside of 32% from the most recent closing price of $49.17. Montour views the company’s second quarter results and outlook as a net positive. Surprise upside within Digital and no signs of a slowdown yet in Las Vegas were offset to some extent by softness in Regionals. Overall, he views the stock’s risk/reward as “compelling.”
The stock traded at around $48 on Thursday, in a 52-week range of $35.10 to $119.81. Shares are down roughly 47% year to date.
Sarepta Therapeutics
Sarepta Therapeutics, Inc. (NASDAQ: SRPT): Barclays reiterated an Overweight rating and raised the price target to $125 from $104, implying upside of 33% from the most recent closing price of $94.01. The lead analyst on the call was Gena Wang and she made this call based on the second quarter “beat and raise.” On the SRP-9001 gene therapy program in Duchenne muscular dystrophy, management continued to be confident on accelerated approval in mid-2023, according to Wang. Also she sees enhanced probability for accelerated approval as well as a positive EMBARK trial.
Sarepta stock has a 52-week trading range of $61.28 to $101.24, and it traded near $103 a share on Thursday. The stock is actually up just over 4% year to date.
Starbucks
Starbucks Corp. (NASDAQ: SBUX): Barclays reiterated an Overweight rating and raised the price target to $96 from $94, implying upside of 15% from the most recent closing price of $83.71. Jeffrey Bernstein was the lead analyst on the call and he noted that the company’s fiscal third quarter was uneventful, with comps in-line and China weakness as expected. He concluded that early progress on profitability ultimately drove operating margin upside.
The stock traded at around $87 on Thursday, in a 52-week range of $68.39 to $120.76. Shares are down over 28% year to date.
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