Coca-Cola European Partners
Coca-Cola Enterprises is now Coca-Cola European Partners PLC (NYSE: CCE). After a 24% drop, which reflected a $14.50 equivalent dividend adjusted price, to $38.81 after the merger, it was started with a Buy rating Merrill Lynch on June 1.
The firm’s $44.50 price objective implied upside of 15% from the prior $38.81 close. The shares continued to rise and hit $39.50 the day after the call, and they closed at $40.13 on Friday.
Coca-Cola European Partners’ 52-week range is $37.73 to $54.54, and the consensus price target is still listed as around $51.00 for even more potential implied upside if the analysts are right.
Deere & Co. (NYSE: DE) was raised to Buy from Neutral at Goldman Sachs on June 3, and the firm raised its price target to $105 from $87, compared with a prior $84.06 close. Deere has a consensus price target of $78.26 and a 52-week range of $70.16 to $98.23. Its shares closed up 1.8% at $85.57 on Friday, and the move was on above average volume.
Goldman Sachs is calling for upside north of 25%, when the dividend yield of almost 3% is included.
On June 2, UBS raised Pure Storage Inc. (NYSE: PSTG) to Buy from Neutral and gave an upside price target of $16. that was up some 41% from the prior $11.31 closing price. Its shares were up over 5% at $12 at one point shortly after the opening bell that day, although they were at $11.70 later in the day and closed at $11.70 on Friday.
Pure Storage has a consensus analyst target of $17.55 and a 52-week range of $11.05 to $20.60. The market cap is $2.4 billion.
Could Whole Foods Market Inc. (NASDAQ: WFM) be back from the dead? The organic and natural foods giant was raised to Outperform from Neutral at Credit Suisse on June 1. The firm’s price target was raised to $40 from $30, well above the prior $32.35 closing price. The consensus price target of $29.71 at the time was back to a consensus of $30.19 after the call. Even Jim Cramer talked up the stock.
Whole Foods shares ended the week at $34.07. The company has a market cap of $11 billion, and the 52-week trading range is $28.07 to $41.97.
Credit Suisse said about Whole Foods:
We see a unique opportunity to own this leading specialty food player while still in the early stages of a repositioning that should reinvigorate growth. A 50% drop in the stock from its peak provides an attractive entry point … while downside seems limited by poor sentiment. … Earnings could remain choppy near-term, but we see a recovery taking hold within 18 months.
Whole Foods is cutting prices, accelerating private brand penetration, aggressively reducing costs, enhancing marketing, investing in technology, and rolling out a value format in 365. The company has been slow to anticipate accelerating competition, but this innovative management team’s aggressive response looks supportive of a return to growth.
More important than Maxim Group starting Yelp Inc. (NYSE: YELP) with a Buy rating on June 3 was that it was assigned a $41 price target. This target implies well over 50% upside to the prior $26.52 closing price.
Yelp had a consensus analyst price target of $25.71 going into that call, and it has a 52-week range of $14.53 to $48.50.Maxim thinks Yelp can leverage its user-generated content and deepen its merchant relationships. What felt like a letdown about this call is that the market ignored it after a weak jobs number on Friday.
Yelp shares were down 0.7% at $26.35 late on Friday, but a late-day recovery took shares up to a 9 cent gain to $26.61 by the closing bell.