Wall Street Analysts Upgrade Disney, Dutch Brothers, and GSK, Citing Strong Growth Potential

Key Takeaway

• Morgan Stanley raises Disney's price target to $135, citing profitability in streaming and Parks by FY24.
• Piper Sandler upgrades Dutch Brothers to overweight, optimistic after strong 4Q23 results.
• Guggenheim upgrades GSK to buy, seeing potential upside from key revenue updates and margin benefits.

Wall Street Calls

Morgan Stanley Bullish on Disney

Morgan Stanley reiterated Disney as overweight and raised its price target on the stock to $135 per share from $110. The firm believes that by the end of FY24, the most impactful businesses for Disney shares should be turning profitable, with streaming and Parks growth accelerating.

Piper Sandler Upgrades Dutch Brothers

Piper Sandler upgraded Dutch Brothers to overweight from neutral, citing the coffee chain's strong positioning after its recent 4Q23 results. The firm sees several dynamics that support this upgrade, leading to a positive outlook for Dutch Brothers.

Guggenheim Sees Upside in GSK

Guggenheim upgraded GSK to buy from neutral, highlighting the biopharma company's potential for upside. The firm mentioned key revenue updates and increased confidence in margin benefits as reasons for the upgrade.

Baird Optimistic on Squarespace

Baird upgraded Squarespace to outperform from neutral, noting that the website building company is undervalued. The firm sees a shift in investor sentiment towards web building categories and believes Squarespace has room for growth.

Street Views

• Morgan Stanley (Bullish on Disney):

  "By the end of FY24, the two most impactful businesses to DIS shares should be inflecting - with streaming turning profitable and Parks growth accelerating."

• Piper Sandler (Bullish on Dutch Brothers):

  "Following BROS’ recent 4Q23 results, and after contemplating several dynamics that we explore further in the body of this note, we are upgrading shares of BROS to Overweight, up from our previous rating of Neutral."

• Guggenheim (Bullish on GSK):

  "We are upgrading GSK to BUY from NEUTRAL following key revenue updates, coupled with increased confidence in margin benefits, pointing to attractive upside potential in the stock, particularly if the Zantac overhang resolves."

• Baird (Bullish on Squarespace):

  "We think there has recently been a meaningful shift in investor sentiment regarding the web building category - and in our view, SQSP has not participated to a sufficient degree despite healthy execution, revenue growth, and margin expansion."

• UBS (Bullish on Norfolk Southern):

  "We are upgrading NSC to Buy from Neutral because we expect stronger performance in NSC’s merchandise network."

• Goldman Sachs (Neutral on Super Micro Computer (SMCI)):

  "We initiate on Super Micro Computer (SMCI) with a Neutral rating and 12-month target price of $941. AI winner but valuation is full right now."

• Bernstein (Bearish on Tesla):

  "On one hand, Tesla’s focus on differentiated high volume products has worked... On the other... it was early to offer compelling EV models.”

• JPMorgan (Bullishon Alphabet):

  "Investor frustration has boiled over around recent Gemini issues... lack of clear goals & targets..."

• Seaport (Bullishon FuboTV):

  "We think the risk-reward in FUBO shares is attractive from here..."

-Morgan Stanley(** Bullish **on Kyverna Therapeutics):

"Cell therapy for autoimmune disease is an emerging space...Kyverna is well positioned given promising early data"

-Wells Fargo(** Bullis h **on UDR):

"UDR: Conservative Guidance & Sunbelt Valuation for This Diversified Apartment REIT—Upgrading to Overweight.”

-RBC(** Bullis h **on Lyft & DoorDash):

" We upgrade both DASH and LYFT as we