Investing.com Pro Recap

Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week.

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Petrobras

What happened? On Monday, Morgan Stanley upgraded Petrobras (NYSE:PBR) to Overweight with a $20 price target.

TLDR: Morgan Stanley upgraded Petrobras ADRs to Overweight, optimistic about returns from recent management and strategic continuity. Analysts predict a 60% total return, including 37% appreciation, 16% regular dividends, and 7% extraordinary distributions.

What’s the full story? Morgan Stanley boosted Petrobras to Overweight from Equal-weight, maintaining a positive outlook on potential total returns. Despite a 17% stock drop from its peak earlier in 2024 and high volatility over the past five months, analysts suggest recent management changes will stabilize stock volatility. Insights from calls and meetings with the new CEO and CFO emphasize a balanced approach to investments and dividends, contingent upon surplus cash. Analysts anticipate a substantial total return of 60%, including 37% price appreciation, 16% from regular dividends, and 7% from extraordinary distributions, indicating confidence in the company’s strategic direction.

Hershey

What happened? On Tuesday, Citi downgraded Hershey (NYSE:HSY) to Sell with a $182 price target.

TLDR: Citi predicts a tough year for Hershey’s 2025 gross margins due to insufficient pricing against cocoa inflation. Volume trends and competitive pricing issues may hinder immediate financial performance, despite potential earnings improvement in 2026.

What’s the full story? Citi expects challenges in Hershey’s gross margins in 2025 from insufficient pricing strategies against cocoa inflation, especially in the first half of the year. The bank notes disappointing volume trends partly due to retail distribution declines. Potential improvements in earnings for 2026 are acknowledged, but starting points may be lower than expected due to current challenges in cost inflation and competition in the chocolate market.

Moderna

What happened? On Wednesday, HSBC upgraded Moderna (NASDAQ:MRNA) to Neutral with a $62 price target.

TLDR: HSBC downgraded Moderna’s 2024 revenue guidance due to weaker COVID-19 vaccine sales and competitive pressures on mRESVIA, but sees significant potential in its cancer vaccine program.

What’s the full story? HSBC adjusted Moderna’s 2024 revenue guidance down following weaker COVID-19 vaccine sales. Despite approval for its mRNA-based vaccine, mRESVIA, the product faces competitive challenges. The bank notes that Moderna’s future growth increasingly hinges on its cancer vaccine program, viewing potential in this area despite existing uncertainties in the respiratory vaccine franchise.

Take-Two Interactive

What happened? On Thursday, Redburn-Atlantic initiated coverage on Take-Two (NASDAQ:TTWO) at Buy with a $194 price target.

TLDR: Redburn-Atlantic highlights Take-Two as a top publisher, anticipating GTA VI to drastically enhance financial outlooks. They predict a 20% stock return boost from GTA VI with a target of $194.

What’s the full story? Redburn-Atlantic sees Take-Two Interactive as a leading video game publisher, with GTA VI expected to be a significant financial boost, marking the first new entry in the franchise since 2013. With anticipated returns of 20%, Redburn states that current expectations haven’t fully recognized the transformative potential of GTA VI’s release.

1-800-Flowers.com Inc.

What happened? On Friday, DA Davidson upgraded 1-800 FLOWERS.COM Inc (NASDAQ:FLWS) to Neutral with a $7 price target.

TLDR: DA Davidson shifted 1-800-Flowers.com to Neutral after missing Q4 2024 expectations and lowering 2025 EBITDA guidance. The price target was cut to $7 due to de-risked estimates and poor consumer sentiment.

What’s the full story? DA Davidson reported that 1-800-Flowers.com missed its Q4 expectations and lowered fiscal 2025 EBITDA guidance. Ongoing low consumer sentiment poses risks to anticipated sales recovery, prompting the upgrade to Neutral. The price target was reduced from $8 to $7, given a cautious outlook for the upcoming year.