5 analyst picks of the day: Roku sizzles on upgrade | Pro Recap

By Davit Kirakosyan

Investing.com -- Here is your daily Pro Recap of the biggest analyst picks you may have missed since yesterday.

Roku upgraded to positive, shares jump

Susquehanna upgraded Roku (NASDAQ: ROKU ) yesterday to Positive from Neutral with a price target of $75.00, noting that despite near-term noise, it believes the long-term connected TV (CTV) opportunity remains intact. The firm continues to see Roku as a prime beneficiary of the secular shift of linear budgets.

“In fact, we see most of the opportunity as still in front of the company. In terms of near-term trends, we believe that the scatter market likely bottomed in late 4Q, with improvement building through 1Q23,” added the firm.

Shares rose more than 4% yesterday, and were ticking fractionally higher in the premarket today.

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J.M. Smucker upgraded at Argus

Argus upgraded JM Smucker (NYSE: SJM ) to Buy from Hold with a price target of $170.00 based on the company's current growth prospects and efforts to divest less profitable businesses. The firm stated:

Smucker is gaining market share as at-home consumption of food and beverages continues to exceed pre-pandemic levels. The company is also working to offset inflation and supply-chain challenges with price hikes and improved productivity, and divesting slower-growing pet food brands, which should improve profitability.

Shares added 1% yesterday.

Bowlero initiated at Buy

Stifel initiated coverage on Bowlero (NYSE: BOWL ) with a Buy rating and a price target of $26.00 yesterday afternoon.

The firm said it believes the company sits at the beginning of a compelling growth story with a dominant position in a fragmented market, a rich opportunity set of assets to roll-up, a successful acquisition and margin expansion blueprint, and powerful secular tailwinds.

Shares were gaining 1.6% in the premarket, and closed Monday's session up 2.4%.

PagSeguro earns Buy rating at Citi

Overnight, Citi upgraded PagSeguro Digital (NYSE: PAGS ) to Buy from Neutral with a price target of $12.00. The firm sees many factors (macro, PIX, churn, fixed pricing, competition) still pressuring PagSeguro’s micro-merchant segment.

“Moreover, it is still unclear how much efficiency gains could drive a change in profitability in the short term – and the lack of guidance does not help on the visibility front,” said the firm, but yet, given the stock underperformance since February and virtually no changes to macro/micro since then, they upgrade the stock.

Shares recently advanced 4.4% in the premarket.

Real Brokerage gets an upgrade

Singular Research upped Real Brokerage (TSX: REAX ) (NASDAQ: REAX ) to Buy from Buy-Long Term yesterday with a Nasdaq share-price target of $2.20.

The upgrade was based on three main factors, said the firm:

First, the Company is continuing to rapidly grow its roster of active licensed agents. Second, a new fee structure should drive profits. Finally, it appears the Fed may stop raising interest rates, and mortgage rates should moderate, driving increased transactions.