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Investing.com — Here’s your expert analyst’s review of the biggest picks you might have missed since Friday: Upgrades from Roblox, Ally Financial, Spirit AeroSystems, and IDEX.
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Roblox upgrades ratings on two companies following improved Q4 results
Roblox (NYSE: ) received two upgrades after beating consensus estimates, sending shares up more than 10% in today’s pre-market.
Barclays upgraded Roblox to equal weight from “underweight” and raised its new price target to $46.00 from $26.00, citing growing users, bookings, revenue and margins.
Goldman Sachs also raised its rating on Roblox to “neutral” from “sell” and raised its price target to $48.00 from $35.00. Analysts emphasized that Roblox’s fourth-quarter earnings are consistent with the outlook shared at the most recent November 2023 investor day, showing strong user growth, an aging player base, and increased per-user monetization. Analysts acknowledged early positive signs on the advertising front but noted that the company has not yet met the materiality threshold to provide more disclosures about its advertising plans.
Longer term, we continue to view Roblox as a company well-positioned in the gaming/interactive entertainment space and as an emerging thematic player around metaverse and creator economy themes.
Ally Financial gains on Morgan Stanley upgrade
According to real-time reporting from InvestingPro, Morgan Stanley raised the stock price of Ally Financial (NYSE: NYSE:) from equal weight to overweight and raised the target price from $37.00 to $47.00 before the market opened today. rose more than 2%.
Analysts highlight that Ally Financial has significant growth potential due to its favorable position in a falling interest rate environment. Analysts said Ally stood out in Morgan Stanley’s coverage as a prime candidate to benefit from lower rates because of its large portion of fixed-rate loans (74% of its loans are primarily for autos) and its financing costs Changes are rapid (about 90% of funds come from deposits, with 63% coming from online savings, checking and money market accounts).
There are two more upgrades
TD Cowen raised Spirit Aerosystems (NYSE: ) to “outperform” from “market perform” with a $35.00 price target (originally $27.00). As a result, the stock price rose by more than 2% before the market opened today.
Analysts pointed to the stability of 737 production and the modest increase in production as positive developments after the Alaska MAX 9 incident. These factors, coupled with expected Airbus price negotiations and substantial inventory rotation opportunities, are expected to result in a strong rebound in free cash flow.
Stifel upgrade IDEX (NYSE: ) lowered it to “buy” from “hold” with a price target of $265.00 (original price: $215.00).
After a challenging 2023, we expect a return to growth in the second half of 2024, with market recovery conducive to current guidance, strong margin expansion going forward, and higher incremental profits typically seen early in the cycle, and in Return to double-digit organic earnings growth in 2025. Balance sheet strength can significantly contribute to long-term earnings growth.
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