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These reports, extracted and edited by Barron’s, were recently published by investment and research firms. Reports are a sample of analysts’ thinking; they should not be taken as Barron’s views or recommendations. Some of the reporters have provided, or hope to provide, investment banking or other services to the companies analyzed.
Hertz Global Holdings
HTZ-Nasdaq
Overweight Price $ 24.06 on December 3
by JP Morgan
We are starting coverage with a price target of $ 30 in December 2022. Hertz is benefiting from a number of very strong tailwinds that are contributing to the current record earnings, including unprecedented used vehicle prices and a supply / supply imbalance. rental car demand – tailwinds likely to ease only gradually over the next 12-18 months. In addition, recently announced initiatives, including partnerships with
American Express
[ticker: AXP],
You’re here
[TSLA],
Uber
[UBER], and
Carvana
[CVNA], could increase normalized earnings, helping to mitigate the effect of mitigating macroeconomic tailwinds. Hertz also has a completely renewed post-bankruptcy capital structure, with much less debt and much more liquidity. We see a relative value compared to the actions of close peers
Budget Notice
[CAR], which benefits from the same macroeconomic factors but is trading at a significantly higher multiple.
Apple
AAPL-Nasdaq
Overweight Price $ 165.32 on December 6
by Morgan Stanley
Despite a consistent and significant contribution to new product and service revenue over time, Apple stocks do not appear to be absorbing the impact of upcoming new product launches. We believe this will change as Apple nears the launch of an augmented reality / virtual reality product over the next year … while AR / VR has gained more investor attention following the change. Facebook brand [as
Meta Platforms
,
FB], Apple has been methodically developing the technology for years. Apple’s AR / VR patent quality ranks among the top technology providers. In conversations with venture capital-backed AR / VR companies, the consensus is that the real catalyst for mass adoption will come when Apple enters the market. Our bullish assessment assumes that AR / VR generates revenue per installed base user similar to that of the iPad in its first four years, equivalent to $ 74 billion in revenue for fiscal 2026, or $ 56 billion. of dollars discounted for one year from today. Target price: $ 200 (revised from $ 164).
Rivien
Automotive RIVN-Nasdaq
Surpass Price $ 104.67 December 3
by Wedbush
We’re starting coverage with a target price of $ 130. Rivian is an undisputed electric vehicle start-up that focuses on redefining the sport utility vehicle with its innovative R1S and R1T models. It is looking to enter an untapped market, as electric SUVs / pickup trucks are virtually non-existent today. Rivian’s first vehicles are expected to launch in early 2022, competing with GM’s all-new Hummer,
Ford
‘s
Tesla’s trusty F-150 and Cybertruck, and Rivian is set to disrupt the auto industry over the next decade. With over $ 10 billion in funding before going public and
Amazon
.
com as a 20% owner, a vertically integrated process, 48,000 pre-orders for the R1 platform and a 100,000-unit partnership with Amazon [for delivery vehicles], Rivian could become a leader in the electric vehicle industry over the next decade.
Azek
AZEK-NYSE
Surpass Price $ 42.26 on December 8th
by BMO Capital Markets
We welcomed CEO Jesse Singh and CFO Peter Clifford from Azek [a building-products company] for a virtual conversation by the fireside. There is a multi-year growth path for decks, from materials conversion to composites. In addition, there is a significant margin expansion opportunity through 1) increasing the use of recycled materials and 2) switching to lower cost resin formulations. Azek’s balance sheet is strong, offering financial flexibility. And the valuation of the share is attractive. The company is aiming for 500 basis points [5%] Improved EBITDA margin from 2019 levels. Target price: $ 53.
Point correction
SFIX-Nasdaq
To sell Price $ 24.97 on December 7
by MKM partners
While sales and EBITDA were above expectations in the [apparel retailer and stylist’s] Last quarter, net customer additions were lower than expected. Of greater concern, however, was the severe second-quarter and full-year reset. [guidance], including expectations of 0% to 3% sales growth and a decline in the number of active customers in the second quarter. The forecast for fiscal year implies a relatively similar EBITDA to that of fiscal 2020. Our price target of $ 19 is 9.7 times our lowered sales estimate for fiscal 2023.
Lindblad LIND-Nasdaq Expeditions
Market performance Price $ 16.50 December 8
by William Blair
Lindblad is a market leader in specialized adventure tourism on land and at sea.
As the industry has been severely affected by the pandemic, the recovery is underway, with domestic leisure travel expected to exceed pre-pandemic levels in 2022. Favorable demographics and Lindblad’s award-winning brand are contributing to its growth prospects at long term. However, it’s prudent to wait for more clarity on the potential impact of the Omicron variant before being more constructive on the name.
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