NetFlix stock (NASDAQ: NFLX)
“We believe NFLX is well positioned as the first choice for streaming movies and TV shows online, while the company continues to ramp Originals and increase the value proposition of the service,” Cowen analyst John Blackledge wrote in a note published Thursday.
The firm reiterated its outperform rating on Netflix and maintained its $650 price target, implying a 23% gain.
Cowen expects net subscriber numbers to exceed the company’s forecast ahead of Netflix’s second-quarter earnings report due to low churn and improved engagement.
Cowen anticipates 1.276 million total global paid net streaming subscriber additions in the second quarter, compared to Netflix’s guidance of one million.
During the second quarter, the company pointed to a strong slate of original content, including new seasons of “Kominsky Method” and “Master of None.”
“We see NFLX as a pioneer in online streaming, with further expected growth in subs in the US and long-term sub growth internationally in existing and new markets,” according to the note.
Netflix shares are down more than 2% in 2021, despite a massive pandemic-era subscriber surge in 2020, according to Cowen, but the streaming giant “continues to lead living room TV.”
According to a Cowen survey, Netflix continues to dominate streaming among US consumers, with 28 percent of respondents saying the platform has the best video content, more than any other platform.
Cowen’s report comes roughly a week after a Credit Suisse study found that consumers see Netflix as the streaming leader in terms of original content.
Netflix shares closed at $528.21 on Wednesday, up 5.8 percent in June.
Gap stock (NYSE: GPS)
For Wells Fargo, the Yeezy line from Kanye West’s business is anticipated to push the price of Gap stores more than 30% higher.
“We see $900M to $1.0B in Yeezy-driven revenue at GPS in 2022 (a combination of Yeezy sales and increased Gap sales due to the “halo”),” said Ike Boruchow of Wells Fargo.
According to Wells Fargo, Yeezy’s potential equity value to Gap is around $10 per share, and the collaboration could boost earnings by 50 cents per share in 2022.
The firm maintained its overweight rating on the stock and raised its price target from $40 to $45 per share. The new price target implies a 33.7 percent increase over Wednesday’s closing price of $33.65.
According to FactSet, this is also the highest price forecast on Wall Street.
Last June, the clothing retailer announced its collaboration with West’s Yeezy. The first item Gap released last month, a $200 blue nylon puffer jacket, was only available for a limited time and is now selling for more than $1,000 on resale sites — and the jackets haven’t even been shipped yet.
Wells Fargo also expressed its enthusiasm for other Gap brands, particularly Old Navy and Athleta.
“The highly compelling sum-of-the-parts story has been a large part of our bullish thesis on GPS over the last year. “We believe the market continues to undervalue the individual brands within the GPS portfolio,” said Boruchow.
Gap stock rose 1.6 percent in June and is expected to rise 66.7 percent in 2021.
ConocoPhillips stock (NYSE: COP)
Goldman Sachs recently described ConocoPhillips as a solid Big Oil investment concept, with attractive returns for investors.
According to Goldman, the oil stock is cheap when compared to peers, and there is more room for share prices to rise given its relationship to Brent crude futures, a benchmark for oil prices.
“The company reiterated its focus on shareholder returns and improving [return on capital employed], where we see material improvement and robust capital returns at our above consensus oil price deck,” Goldman’s Neil Mehta wrote in a note the day after ConocoPhillips hosted a virtual analyst event.
Return on investment employed is one metric for determining how well a company generates profit from the capital it employs.
Goldman reiterated its buy rating on ConocoPhillips and raised its 12-month price target by $1 to $68, representing an 11.66 percent increase over the stock’s Wednesday closing price of $60.90. When dividends and capital gains are considered, the bank sees a total return of 15% for ConocoPhillips shares.
“We continue to believe there is room for COP’s share price to rise,” Mehta said.
ConocoPhillips’ acquisition of Concho Resources, according to the firm, should improve asset quality.
ConocoPhillips stock gained 4.5 percent in June and is up more than 52 percent this year.
Bed Bath & Beyond stock (NASDAQ: BBBY)
On Wednesday, B. Riley started coverage of the long-term potential winner in the retail sector, Bed Bath & Beyond (BBBY), with a target price of 30% above current levels.
“We believe BBBY’s new management team has made significant improvements to reduce costs and make necessary investments to elevate BBBY into a top omni-channel retailer in the bed, bath, and home space,” Susan Anderson of B. Riley said in a note.
Anderson praised the company’s plans to save money by closing stores while increasing profits through e-commerce and proprietary brands.
The firm assigned a buy rating to the retail stock and set a price target of $44, implying a 32.2 percent increase from Wednesday’s closing price of $33.29.
The call comes after the stock experienced wild trading on Wednesday as a result of mixed first-quarter fiscal results, with its price falling and then surging as more than 50 million shares changed hands.
Despite this year’s massive rally in the stock, B. Riley believes Bed Bath & Beyond’s shares are undervalued.
“Because of the significant progress the company has made, we believe BBBY should be trading closer to peer valuations,” Anderson said.
The company also stated that it expects to see a boost during the back-to-school season as college students who stayed home during the pandemic last year will now buy dorm room products for on-campus learning.