The latest stock calls and tips for the 3rd of July 2024.
[.custom-color]Uber[.custom-color] was named a top stock pick by Deutsche Bank, adding it to its Fresh Money list, which contains its best ideas. With a price target of $95, analyst Benjamin Black can see a 34% upside on the current price of $71. He commented:
"The underlying growth algorithm at Uber remains strong, with driver supply and engagement continuing to support mobility growth, despite declining driver incentives."
[.custom-color]Adobe[.custom-color] was also added to the list, with a target price of $650 (14% above the current price of $567). Despite its NNARR (Net New Annual Recurring Revenue) declining for the past two quarters, Black commented:
"As pricing headwinds invert, new products become generally available, and enterprise adoption of Firefly (Adobe's generative AI product)... Continued productivity enhancements from generative AI and users outgrowing freemium offerings should continue to support ARPU (Average Revenue Per User) growth in the future."
[.custom-color]PayPal[.custom-color] was upgraded to Positive from Neutral by Susquehanna. The price target, however, was unchanged at $71. While a drop in price to sub-$59 has helped the improved rating, analyst James Friedman was also impressed that "profitable growth is now a top priority for PayPal." New product offerings, including Fastlane guest checkout, "could help gain share at Christmas."
For the first time since the beginning of 2024, half the analysts following PayPal are bullish.
[.custom-color]Atlassian[.custom-color] was upgraded to Overweight from Neutral by Piper Sandler. Their new price target of $225, up from $200, represents a 24% upside.
"With shares at 8x CY'25E revenue, the risk/reward is now favorable for $TEAM. Eighty-two percent of Data Center seats are enterprise, suggesting enterprise customers will drive the next wave of cloud migrations, enhancing cloud growth. We view the current valuation as an attractive entry point into one of the most durable companies in our coverage."
Wells Fargo also recently gave the company a price target of $250.
[.custom-color-downgrade]CrowdStrike[.custom-color-downgrade] was downgraded to Neutral by Piper Sandler, with an unchanged price target of $400. They commented that "Shares have deservedly risen to the highest revenue multiple of any public software company above $75B in market cap"; however, they do not see a near-term catalyst for raising the price even further. Essentially, this is a short-term value call:
"We are optimistic about the company longer term as well as the opportunity, just not the stock over our 12-month investment horizon."