(This is CNBC Pro's live coverage of Monday's analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A gym stock and an oil giant were among the stocks being talked about by analysts on Monday.
Baird named Planet Fitness a top pick , highlighting its attractive valuation. Meanwhile, Morgan Stanley raised its rating on Petrobras , calling for strong gains ahead. Check out the latest calls and chatter below.
All times ET. 5:59 a.m.
: KeyBanc names Autodesk a favorite idea for early 2025 KeyBanc dubbed Autodesk a top pick with 2025 on the horizon. "Net, we continue to see a compelling margin expansion-led narrative change, and view ADSK as one of our favorite early 2025 ideas," analyst Jason Celino wrote in a Sunday note to clients. Celino has an overweight rating on the stock and a price target of $305, which suggests 19.
5% upside ahead from Friday's close. Celino said the narrative change on the stock is led by the margin expansion as a result of investor activism. It's a story the analyst called compelling, but "not an immediate slam dunk.
" To be sure, he warned that the macroeconomic environment carries some uncertainty and could need recovery time after interest rates are cut. Following mixed quarter-end checks, Celino concluded that the tone of the business should be largely unchanged. Yet he said investors will look for signals that Autodesk has listened to recent feedback and is focusing on margins.
Autodesk shares have underperformed the broader market this year with a gain of less than 5%. — Alex Harring 5:53 a.m.
: JPMorgan moves to neutral on BJ's JPMorgan exited BJ's bearish camp as the company invests in itself and consumers trade down. Analyst Christopher Horvers upgraded shares of the wholesaler to neutral from underweight and upped his price target by $2 to $78. However, Horvers' refreshed target suggests 5.
8% downside from Friday's closing price. "Looking ahead, we expect modest reflation in grocery while the company is benefitting from its efforts to drive share by reinvesting in the business," Horvers said. On top of that, "we are squarely at the point where the channel is seeing a lift from trade down in a hyper-value seeking consumer environment.
" Horvers predicted that the company's guide down for 2024 fiscal year guidance would end up being a "bit conservative." Still, with this outlook in mind, he said to expect flat or down earnings for the third straight year. The analyst noted that JPMorgan's 2022 downgrade was based on the long trail of disinflation that was then anticipated for BJ's.
He said the stock was of particular concern given its 85% grocery mix and higher-than-typical exposure to the low-income consumer. Shares rose more than 1% before the bell. The stock has climbed more than 24% in 2024.
— Alex Harring 5:44 a.m.: Baird deems Planet Fitness a 'bullish fresh pick' Baird has reason for optimism on Planet Fitness .
Analyst Jonathan Komp on Monday added a "bullish fresh pick" designation through year-end on the gym chain's stock, while maintaining his outperform rating. Komp's $92 price target implies 13.5% upside from where the stock concluded last week.
"We are highlighting PLNT as an attractive idea for a slowing growth environment," Komp wrote to clients. "New leadership has addressed unit economic challenges, and we see multiple potential drivers – especially better marketing – lining up for 2025," he added. "PLNT's strong consumer value proposition and high-margin franchise model should prove resilient in a challenging macro backdrop, and lower interest rates and building cost relief could spur investor optimism in unit growth reaccelerating after 2024E.
" Komp noted that the stock is still lagging the S & P 500 despite rising from lows seen earlier this year and an improving fundamental setup for 2025. He said shares look "attractive" at forward enterprise value to EBITDA multiple of 17.2, which Komp said is about a 6% discount compared with other peers in the franchisee business.
Shares are up slightly over 11% in 2024. PLNT YTD mountain PLNT in 2024 — Alex Harring 5:44 a.m.
: Morgan Stanley upgrades Petrobras A strong period is ahead for Petrobras after struggling in 2024, according to Morgan Stanley. Analyst Bruno Montanari upgraded the Brazilian oil giant to overweight from equal weight. His price target of $20, up from $18, implies upside of 38.
9% from Friday's close. Petrobras recently underwent major executive changes, including the appointment of a new CEO in June, putting pressure on the stock. Year to date, shares are down nearly 10%.
PBR YTD mountain PBR in 2024 But, with "management changes now behind, we believe the noise level will gradually diminish, which could remove some of the volatility component," Montanari wrote. "The message of the new CEO and CFO in recent conference calls and meetings leads us to believe in strategy continuity, with the coexistence of a responsible increase in investments and dividend distribution, as long as there is spare cash availability." U.
S.-listed shares were up 2% in the premarket following the upgrade. — Fred Imbert.
