Top Analyst Calls on Friday: Warner Bros. Discovery to see over 35% increase, Scotch tape maker gets upgraded

Analysts had a busy day on Friday, with upgrades and downgrades for several prominent companies. Warner Bros. Discovery caught the attention of KeyBanc, which upgraded the media giant to overweight and set a price target implying over 35% upside. Meanwhile, HSBC raised its rating on 3M to buy, predicting a ‘return to growth’ due to improving macroeconomic conditions. On the flip side, Stifel downgraded Planet Fitness despite a first-quarter earnings beat, citing concerns about franchisee development and rising cancellation rates.

TD Cowen had positive news for Dutch Bros, upgrading the drive-through coffee company to buy and highlighting its attractive risk-to-reward profile. The firm sees potential for more than 40% upside in Dutch Bros stock, thanks to strong traction in turnaround efforts and successful strategies like beverage innovation and loyalty program offers. In contrast, Stifel’s concerns about Planet Fitness include its quarterly sales volatility and strategic decisions like international expansion, leading to a hold rating and lowered price target.

HSBC’s upgrade of 3M was based on expectations of growth driven by an improving macroeconomic backdrop and cost savings, as well as the recent spin-off of its health care component, Solventum. With a forecast of over 18% upside, the firm believes 3M’s forward guidance is conservative and that the company remains a quality investment. KeyBanc’s upgrade of Warner Bros. Discovery reflects optimism that the company’s struggles may soon come to an end, citing potential improvements in DTC profitability, subscriber growth, and ARPUs.

Overall, it was a mixed day for analyst calls, with a range of upgrades and downgrades affecting the stock performances of the companies involved. Investors interested in Dutch Bros may see potential for significant gains based on TD Cowen’s positive outlook, while those considering Planet Fitness may want to take a closer look at the risks mentioned by Stifel. 3M and Warner Bros. Discovery also offer opportunities for growth, according to HSBC and KeyBanc, respectively, based on factors like improving macroeconomic conditions and promising developments in the media industry.

As always, it’s important for investors to conduct their own research and consider all available information before making investment decisions. Analyst calls can provide valuable insights, but they are just one piece of the puzzle when it comes to evaluating potential opportunities in the stock market. Keep an eye on these companies and others highlighted by analysts to stay informed about changing market dynamics and potential investment opportunities.