Analysts at Financial institution of America say there is a slew of buy-rated shares effectively positioned heading into earnings season. CNBC Professional combed by means of the agency’s analysis to search out corporations the agency likes as quarterly reviews start. They embody: Warner Bros Discovery, Birkenstock , Spotify and United Airways. United Following on the heels of Delta’s strong earnings report final week, analyst Andrew Didora is feeling bullish on shares of United. “We anticipate UAL to report sturdy 4Q24 outcomes and information 1Q25 forward of consensus when the corporate reviews earnings after the shut on January 21,” he wrote. The agency raised its worth goal on the inventory to $120 per share from $100 and says it sees strong income progress persevering with. As well as, journey demand stays sturdy regardless of the macro uncertainty, in line with Didora. “The airline is the largest beneficiary of the sturdy premium, company, and transatlantic progress talked about in DAL’s earnings report final week,” he wrote. United was additionally added to Financial institution of America’s prestigious US1 high concepts checklist. Shares are up 183% during the last yr. Warner Bros Discovery Purchase the dip in shares of the media and leisure firm, analyst Jessica Reif Ehrlich mentioned. The inventory is down 6.3% during the last yr, however the agency says the shopping for alternative is simply too compelling to disregard. “WBD’s 4Q earnings ought to replicate a continuation of the assorted headwinds within the enterprise,” she wrote acknowledging the challenges the trade faces. Nonetheless, the agency says the optimistic catalysts outweigh the detrimental. They embody “easing studio comparisons, potential restoration in promoting, additional progress in DTC [direct to consumer] and potential revenue inflection.” “We proceed to imagine WBD has a compelling assortment of belongings,” she added. The corporate is scheduled to report earnings later this quarter. Birkenstock The shoe firm is firing on all cylinders forward of earnings in late February, analyst Lorraine Hutchinson wrote following a current assembly with firm administration. The agency says it sees a number of tailwinds within the months forward together with pricing energy, product diversification and worldwide progress. “We view Asia as a largely untapped alternative,” she famous. Additional, the corporate lately reiterated income steerage of 15% to 17% progress in fiscal yr 2025, which Financial institution of America mentioned is eminently “achievable.” In the meantime, Birkenstock shares are up 20% during the last 12 months with lots extra room to run, Hutchinson mentioned. “We retain our Purchase score and think about BIRK as a model that can proceed to take share globally,” she went on to say. Spotify “We reiterate our Purchase score and $515 PO. We imagine SPOT is at an inflection level in profitability and FCF pushed by: 1) deeper penetration in current markets, 2) current/future worth will increase, 3) new pricing tiers, 4) an enchancment in promoting pushed by digital initiatives and 5) new companies reminiscent of audiobook.” Birkenstock “BIRK reiterated its FY25 steerage of 15-17% income progress. We view this as achievable given present model momentum. We retain our Purchase score and think about BIRK as a model that can proceed to take share globally. … .We view Asia as a largely untapped alternative,” United Airways “We anticipate UAL to report sturdy 4Q24 outcomes and information 1Q25 forward of consensus when the corporate reviews earnings after the shut on January 21. … .The airline is the largest beneficiary of the sturdy premium, company, and transatlantic progress talked about in DAL’s earnings report final week…” Warner Bros Discovery “WBD’s 4Q earnings ought to replicate a continuation of the assorted headwinds within the enterprise. … .We proceed to imagine WBD has a compelling assortment of belongings. Upcoming catalysts embody: 1) easing Studio comparisons, 2) potential restoration in promoting, 3) additional progress in DTC and 4) potential revenue inflection.”
Source link