Investing

5 Analyst Favorite Stocks at Raymond James Are Perfect Reopening Theme Buys

Dave and Buster’s

This top chain continues to be a favorite across Wall Street as Generation X and millennials love to spend time there. Dave & Buster’s Entertainment Inc. (NASDAQ: PLAY) owns and operates entertainment and dining venues for adults and families in North America. Its venues offer a menu of “Fun American New Gourmet” entrées and appetizers, as well as a selection of non-alcoholic and alcoholic beverages, and an assortment of entertainment attractions centered on playing games and watching live sports and other televised events.

As expected, the company’s fourth-quarter financial results were negatively affected by the COVID-19 pandemic. It began the quarter with 104 open stores, or approximately 75% of its total store base. Due to renewed operating restrictions imposed by local jurisdictions during November and December in response to the COVID-19 resurgence, Dave and Buster’s had 89 stores open as of January 3, or approximately 65% of its total store base. Management expected more than 100 stores to be open by mid-January, continuing through the end of the quarter, all operating under various limitations, and for its 27 stores in California and New York to remain closed for the remainder of the quarter.

Clearly, the reopening of the economy and businesses will be huge for this company.

Raymond James has its price target set at $45, but the much lower consensus target is $32.20. Dave and Buster’s stock rose almost 5% on Monday to close at $40.61 a share.

Diamondback Energy

This is a top Permian Basin play for investors who are more aggressive. Diamondback Energy Inc. (NASDAQ: FANG) is an independent oil and natural gas company headquartered in Midland, Texas, and focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves.

Diamondback’s activities are focused primarily on the horizontal exploitation of multiple intervals within the Wolfcamp, Spraberry, Clearfork and Cline formations. Oil pushing through the $60 a barrel level should help boost production, and travel should also increase, which could support pricing.

Wall Street analysts have noted in the past Diamondback Energy’s top-tier asset base, solid accretive additions and financial discipline, which they think allows for not only continued solid cash flow but could put the company in play as a takeover target. It continues to drill some of the most economical wells in the United States as efficiencies improve, costs decrease and activity remains in the better regions.

The towering $91 Raymond James price objective compares with the $76 consensus target price. Monday’s $68.41 a share close for Diamondback Energy stock followed a gain of over 4% for the day.

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