Investing.com — Here’s your pro recap of the top takeaways from Wall Street analysts last week.
InvestingPro subscribers always get first dibs on the market’s most dynamic AI analyst commentary. Upgrade today!
Alarm.com
what happened On Monday, JP Morgan initiated coverage. Alarm.com Holdings Inc (NASDAQ: ) Underweight with a $50 price target.
*TLDR: Alarm offers a scalable cloud security solution. JPMorgan rates the alarm underweight, citing earnings concerns.
What is the full story? Alarm has developed a robust and scalable cloud monitoring and management platform, primarily targeting the residential and commercial security sectors, according to JPMorgan analysts.
Operating on a B2B2C model, Alarm collaborates with more than 12,000 service providers who, in turn, offer security and video monitoring solutions to more than 9 million customers while managing more than 150 million connected devices. While the majority of end users are American homeowners, the company is also focusing on expanding its reach to commercial customers and homeowners overseas.
JPMorgan’s analyst team has assumed alarm coverage with an underweight rating, citing potential revenue headwinds, limited margin growth, and a relatively high ratio of hardware and non-core compared to similarly valued stocks. Recurring income streams are referred to. Additionally, alarm is included as a brief consideration in the analyst focus list, reflecting these concerns.
Underweight at JPMorgan means “over the period of the price target stated in this report, we expect it to underperform the average total return of the stock in the coverage universe of the stock research analyst, or team of research analysts. “
Bristol-Myers Squibb
what happened On Tuesday, Leerink Outperform Bristol-Myers Squibb Company (NYSE: ) with a 73 price target.
*TLDR: Leerink expects Cobenfy and milvexian to boost stock performance. BMY’s LT sales estimates rose after positive trial results.
What is the full story? Leerink expects upward pressure on consensus expectations for Cobenfy (KarXT) and milvexian, which is expected to outperform the stock. They have adjusted their revenue growth estimates, projecting a 5-year CAGR of 1% and EPS growth of 3% for 2025-2030. Their 2030 revenue estimates are 33% higher than Visible Alpha’s consensus, and 57% higher than EPS consensus.
Despite the strong performance of BMY’s stock since June 2024, Leerink noted that only 23% of the sell-side ratings are Buy/Outperform. Following the failure of AbbVie’s americlidine trial, the research team raised long-term projections for CobainFi, including a 36 percent increase in sales to $5.7 billion in 2030. If the drug succeeds in additional indications, they see Cobain’s potential for more than $10 billion in sales.
Leerink also raised estimates for milvexian sales following a positive trial update, with 2030 risk-adjusted sales rising 26% to $3.9 billion. They believe milvexian could surpass their 2025 Eliquis sales estimate of $14.4 billion if it exhibits a high profile in upcoming trials. While EPS growth is limited through 2029 due to the loss of emissions for Eliquis and Opdivo in 2028, these pressures for BMY are expected to ease from 2030 onwards, with a 10% EPS CAGR expected from 2029-2032.
Outperform on Leerink means “we expect the stock to outperform its benchmark over the next 12 months.”
Axalta Coating System
what happened On Wednesday, Evercore initiated coverage. Axalta Coating Systems Ltd (NYSE: ) with an Outperform rating and a $47 price target.
*TLDR: AXTA gains momentum with 17% EBITDA growth under new leadership. Evercore sees 11x EBITDA potential, suggesting 17% upside.
What is the full story? Evercore highlights that Axalta Coating Systems, a leader in refinish and mobility coatings, has faced challenges since its 2013 spin-off from DuPont (NYSE: ) Performance Coatings, but is now under new leadership. Speed is increasing. Chris Villaverne, appointed CEO in November 2022, has revitalized the company with strategic self-improvement initiatives, which have significantly improved both trading performance and stock momentum. AXTA’s significant EBITDA growth of 17% year-on-year in 2023, with a similar forecast for 2024, indicates a promising path for value creation through both organic and inorganic growth.
Despite improved business fundamentals and lower volatility, AXTA’s market multiple has not increased, trading at 9.8x trailing-twelve-month EBITDA valuation. This is a discount of about 2 times compared to competitor refinish/industrial coatings. PPG (WA:), and more than 3 turns below other materials and industry peers with similar profiles. Evercore suggests that while timing and catalysts present challenges for re-rating stories, continued operational execution by new management and the success of a formal A-plan could gradually trigger multiple expansions.
The brokerage believes that AXTA is likely to rise in multiples. A mere 1-fold expansion to 11x projected 2025 EBITDA of $1.2 billion could support a price target of $47 per share, implying 17% upside.
Outperform Evercore means that “the forecasted total return is expected to exceed the analyst’s coverage sector’s expected total return.”
Plug power
what happened On Thursday, BTIG downgraded Plug Power (NASDAQ: ) to Neutral with no price target.
*TLDR: Plug Power aims to increase liquidity amid slow hydrogen growth. BTIG highlights cost reduction and sales as keys to margin improvement.
What is the full story? BTIG reports that Plug Power is actively working to increase its liquidity, expecting a slower-than-expected hydrogen order pace. Despite growing global demand for hydrogen, the company’s 2025 revenue guidance of $850M-$950M is about 20% below consensus. PLUG has revised its margin targets, aiming for a positive gross margin by the end of 2025 and a positive EBITDA margin in the second half of 2026, reflecting the need to increase product sales to improve margins. does
Analysts cut PLUG to neutral as slower-than-expected demand weighed on margin improvement. To address liquidity concerns, PLUG has raised approximately $877 million in equity year-to-date, increased its ATM to approximately $1 billion, and recently issued a $200 million convertible note. This financing arrangement helps with near-term liquidity, allowing management to obtain DOE funding to restart the Texas hydrogen production facility and reduce costs to achieve a positive gross margin by the end of 2025. Allows focus.
BTIG emphasizes that while PLUG’s product is well-positioned to build global hydrogen, cost reduction and sales growth are critical to achieving the company’s revised financial goals. Management is hopeful of securing funds early next year to advance its strategic initiatives. The focus is now on cost management to support these goals amid industry growth challenges.
Neutral in BTIG means “a security that is not expected to decline in value or decline in value over the next 12 months.”
Solar Edge
what happened On Friday, Morgan Stanley downgraded. SolarEdge Technologies Inc (NASDAQ: ) to Underweight with a $9 price target.
*TLDR: Morgan Stanley predicts that SEDG faces profitability challenges from lower demand. The price target has been raised to $9, a 30% downside.
What is the full story? Morgan Stanley expects SEDG’s long-term return to profitability due to weaker demand in Europe and intense pricing competition from low-cost Chinese manufacturers. These factors threaten SEDG’s ability to generate strong margins and sustainable cash flows. Additionally, the upcoming debt maturity in September 2025 poses a significant liquidity risk if not managed effectively.
Analysts highlight a continued decline in demand and revenue outlook, with significant declines in SEDG’s core markets increasing its cash flow risk. Reflecting this continued demand weakness, particularly in Europe, Morgan Stanley has cut its 2026 EBITDA forecast by 70%.
As a result, Morgan Stanley lowered its price target for SEDG to $9, representing a 30% downside. This new target sets 0.4 times 2026 revenue estimates or 39.2 times 2026 EBITDA estimates, compared to previous targets of 0.7 times and 28.5 times, respectively.
Underweight at Morgan Stanley means that “over the next 12-18 months, the stock’s total return is expected to be below the average total return of the analyst’s industry (or industry team’s) coverage universe, risk-adjusted.” on the basis.”
