We would like to introduce you some changes to the recommendations for companies that have been published in recent days. Reviews of brokerage houses act like self-fulfilling prophecies very often so it is important to keep track of them. In our review, we focused on companies which rating has been raised.
Jefferies brokerage has issued a “buy” recommendation for Goodyear Tire and its shares were priced at $40 each, almost 20 percent more than their market price. Brokerage house in the justification of the recommendation points to the company’s increasing sales volume and its high cash levels. In addition, Jefferies states that the sentiment around Goodyear Tire will start to improve in the near future and the recent pull back of its share price should be a good opportunity to buy. Company’s valuation has been moving in the upward channel for years now. Support zone is being tested now around $33.25 which is where the previous peaks are.
Goodyear Tire price has been moving for more than a year in the upward channel. An effective test of an important support zone of $33.25 could provide an interesting opportunity to buy the company’s shares. Source: xStation5
Cowen has raised the rating for McDonald’s shares from “market perform” to “outperform”. In addition, the target price for the company’s shares was raised from $142 to $180 which is $30 more than their current market valuation. The brokerage house indicates that McDonald’s image has improved over the last few months and that the online food sales platform should become a new catalyst for growth. Cowen also raised forecasts for McDonald’s sales in the US for 2017 to 3.4 percent year on year from 2.2 percent while consensus estimates were 2.7 percent and 2018 to 3 percent. Company’s shares price is moving in a strong upward trend. The previous peaks at $153.60 are now being tested with potential trend continuation.
McDonald’s shares price is moving in a strong upward trend. The previous peaks at $153.60 are now being tested with potential trend continuation. Source: xStation5
Wells Fargo has increased the rating for CDK Global to “outperform.” In addition, the target price for its shares is set at $75 which is more than $12 above their market valuation. The bank motivates its recommendation pointing to a good business plan of the company and its ability to improve margins. It is expected to increase to 35 percent in 2018 and up to 40 percent in the broader time horizon. Company’s shares price, since its debut in 2014, has been moving in a clear upward trend. At $60 a new higher low has been formed so now the base case scenario is to re-test the existing peaks at $67.30.
After setting a new higher low, the base case scenario should be the move towards the last peaks located at $67.30. Source: xStation5