Investing.com – Here's a professional summary of the most important pieces of information Wall Street analysts said over the past week.
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Netflix
What happened? On Monday, Loop Capital downgraded Netflix (NASDAQ:) to “hold” with a price target of $950.
*Tilder: Netflix is poised for growth. Concerns about valuation remain.
What's the full story? Loop summarized that Netflix is in an exceptionally good position, anticipating more than 30 million new subscribers this year, second only to the 2020 pandemic wave. Revenues are back to growth in the mid-20s, and operating margins are expected to rise by 600 basis points in 2024, with management continually updating guidance over the past four quarters. A significant increase in subscribers was expected in the fourth quarter due to highlights such as the Paul/Tyson matchup and NFL Christmas games featuring Beyoncé.
Co-CEO Ted Sarandos expressed strong optimism about the 2025 content lineup, calling it perhaps the strongest since original programming began. Even though the most popular pricing tier in the US hasn't been raised in nearly three years, Netflix's prices remain competitive. However, given its historically high valuation multiples, Loop downgraded Netflix to Hold noting that shares are close to fair value.
Holding Loop Capital means that “the stock is expected to perform in line with the market or similar stocks over the next 12 months.”
Tesla
What happened? Tuesday, Mizuho (NYSE:) upgraded Tesla Inc (NASDAQ:) to Outperform with a price target of $515.
*Tilder: Mizuho upgrades Tesla, sees significant valuation bump. The price target was raised to $515.
What's the full story? Mizuho's upgrade comes against a backdrop of distinct tailwinds over the next four years. Company notes that loosening regulatory frameworks for self-driving provides further upside valuation for FSD/Robotaxi New Trump administration policies better position Tesla with lower EV cost structure than peers TSLA set to outpace global light vehicle production with more EV Profitability. A roadmap that includes a low-cost Q/Cybercab model in 2026-2027.
Mizuho's SOTP valuation includes approximately $1.8 trillion for Tesla, with core automotive, energy and other sectors at approximately $711 billion, FSD and Robotaxi at $614 billion with an increase to $896 billion, and humanoid robots at $472 billion with access to 740 billion dollars. As a result, Mizuho raised its price target to $515 from $230, in line with its valuation, driven by positive recalibration with new management and FSD/Robotaxi optimism, despite near-term challenges from EU tariffs and EV credit cancellation.
Mizuho's outperformance means that “the stock's total return is expected to outperform the forecast unweighted total return of the analyst's industry coverage universe over the next 12 months.”
Citizens Finance
What happened? Wednesday, Raymond (NS:) Double James upgrade Citizens Financial Group Company (NYSE:) is a strong buy with a target price of $55.
*Tilder: Raymond James is bullish on CFG, strengthening NIM/NII. Profits are expected to rise.
What's the full story? Headwinds from fixed contract swaps received are expected to subside, strengthening CFG's net interest margin (NIM) and net interest income (NII), Raymond James reported. The company expects an increase in capital markets fees, exceeding current expectations as the environment becomes more favorable for mergers, acquisitions and capital raising. The private banking initiative is expected to see profitability accelerate, while credit concerns appear benign with metrics likely to improve due to contracting rates and lower contribution from the repatriation portfolio.
As a result, analysts are increasingly bullish on CFG shares, citing the discounted valuation as an attractive entry point for a bank well positioned to improve its profitability and earnings per share (EPS) growth in the future.
Strong buying in Raymond James means “the security is expected to rise, produce a total return of at least 15%, and outperform the S&P/TSX Composite Index over the next six to 12 months.”
Oklo Company
What happened? On Thursday, Wedbush launched Oklo Inc (NYSE:) to Outperform with a price target of $26.
*Tilder: Wedbush highlighted Oklo's strong stance. AI-driven demand boosts Oklo's prospects.
What's the full story? Wedbush noted that Oklo, a Santa Clara-based SMR manufacturer founded in 2013, aims to develop its first small modular reactor by 2027. Backed by Sam Altman, the Oklo Aurora microreactor, scalable to 100 megawatts, will operate for more than 10 years before refueling.
Oklo's project pipeline was 93% ahead of its 2027 deployment plan, with data centers accounting for a significant portion of its strength under letters of intent.
Analysts highlighted Oklo's unique build-own-operate business model, where it sells power directly to customers under long-term contracts to capture recurring revenue and simplify regulation. Despite being in the pre-revenue stage, Oklo plans to accelerate additional revenue streams, including recycling, following its acquisition of Atomic Alchemy.
The artificial intelligence revolution and growing demand for clean energy puts Oklo in a strong position to capitalize on this growing demand.
Outperformance at Wedbush means “an expectation that a stock's total return will outperform relative to the average total return of the analyst's coverage universe (or analyst team) over the next six to 12 months.”
PBF Energy
What happened? On Friday, TD Cowen downgraded PBF Energy Inc (NYSE:) to sell with a target price of $20.
*Tilder: TD Cowen noted PBF's weak refining performance. Exposure to the West Coast is viewed as a detriment.
What's the full story? TD Quinn noted that PBF has shown poor refining results per barrel over the past year and a half, due to a high-cost refining system and weak light/heavy differentials. Analysts noted that PBF's large exposure to the West Coast could be detrimental through 2025, given increased renewable diesel imports and continued destruction of gasoline demand. TDC values PBF on a 50/50 NPV basis of FCF through 2026 at a 10% yield and NPV EBITDA at 6x, with 2026 as a mid-cycle cut-off year.
The assessment listed cracks $1/bbl lower than the sector in 2025, and $1/bbl higher in 2026, with normalized heavy/light spreads. TD Cowen also highlighted that PBF was currently trading at 5.5x EV/EBITDA in 2026, accounting for changes in capital structure, consistent with the historical trading range, despite limited FCF generation.
A short on TD Cowen means that “the stock is expected to deliver a total return of -10% or less over the next 12 months.”
