Street Calls of the Week

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

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Roku

What happened? On Monday, Redburn-Atlantic upgraded Roku Inc (NASDAQ:ROKU) to Buy with a $100 price target.

*TLDR: Roku thrives on strong revenue, ad growth. Redburn-Atlantic upgrades, sees 80% upside.

What’s the full story? Roku is printing money, and Redburn-Atlantic is here to explain why. With 11% revenue growth and 5% opex CAGR through 2028, EBITDA and FCF/share are set to explode at 36% and 33%, respectively. CFO Dan Jedda’s obsession with FCF/share is the cherry on top—Redburn-Atlantic sees opex control and margin expansion as a sure bet. Roku’s installed base? Bulletproof. It’s in over half of U.S. broadband homes, making it the ad buy of choice for CTV’s future. Ad growth is pegged at 14%, with six points coming from international. And let’s not forget the $90 million political ad bonanza in 2H24. Advertisers need Roku.

Now, the juicy part. Redburn-Atlantic’s downside scenario—cutting 2027 ad forecasts by 5%, applying a 50% decremental margin, and assuming EBITDA multiple contraction—still only implies 20% downside. But the upside? A juicy 80% to their $100 PT, which values Roku at 18x 2027 EBITDA and 26x FCF. Sure, tariffs will hurt TV companies, but Roku’s price-conscious consumers give it an edge. The stock is already 45% off highs, making this a no-brainer upgrade to Buy.

Because in a world of linear TV dinosaurs, Roku is the comet.

Coinbase

What happened? On Tuesday, Cantor Fitzgerald upgraded Coinbase Global Inc (NASDAQ:COIN) to Overweight with a $245 price target.

*TLDR: COIN undervalued, crypto backbone, re-rate ahead.

What’s the full story? Cantor is here to tell you COIN is more than just a degenerate gambling den for crypto bros. Sure, it’s the crypto casino king with $1.2 trillion in trading volume in 2024, but the market is asleep on its Base L2 network and its cozy stablecoin ties with Circle. These aren’t just shiny toys—they’re the infrastructure bones of the crypto economy. Yet, COIN trades 32% below historical multiples, screaming “buy me” if you squint hard enough.

The buyside is sweating trading volumes—Cantor’s 1Q25E estimate is $385 billion vs. $416 billion consensus, and 2026E looks rough. COIN’s non-trading revenue streams are the unsung hero, keeping EPS within 1% of consensus for 2026E. Earnings volatility is fading, and investors assigning a low multiple are missing the plot.

COIN isn’t just a cycle play anymore—it’s the crypto economy’s backbone, and Cantor says it’s time for a re-rate.

Bath & Body Works

What happened? On Wednesday, Piper upgraded Bath & Body Works Inc. (NYSE:BBWI) to Overweight with a $35 price target.

*TLDR: BBWI excels in fragrance, Piper upgrades outlook.

What’s the full story? BBWI is sitting pretty in a fragrant bull market. Piper’s thesis is simple…fragrance and body care are beauty’s fastest-growing categories, and BBWI’s vertically integrated structure, accessible price points, and minimal overseas exposure buffer it from macro chaos. Trading at a discount—7-8x NTM P/E, near multi-year lows—it’s an enticing entry point according to the report.

Everyday Luxuries are driving growth, with >1/3 of sales in these categories. Even if the market slows to mid-single-digit growth by 2025, BBWI’s competitive edge ensures it carves out incremental gains.

BBWI’s teen survey results are a breath of fresh air. Male and female fragrance spend hit new highs, and BBWI remains the #1 female fragrance brand, even as mindshare dips. My lady has me buying them monthly. For the first time since 2018, it’s a top beauty destination for females (#3), a testament to newer leadership’s push for an expanded beauty assortment and engaging storefronts.

Piper sees a brand that’s not just surviving but thriving in a crowded, fickle market.

Dollar General

What happened? On Thursday, Gordon Haskett downgraded Dollar General Corporation (NYSE:DG) to Reduce with a $75 price target.

*TLDR: Dollar General struggles as Walmart (NYSE:WMT) tightens grip. Gordon Haskett downgrades DG, citing price gaps.

What’s the full story? The dollar store apocalypse looms. Dollar General’s price gaps are 3x wider than historical norms—music to Walmart’s ears, which is flexing its digital margins, advertising, and membership muscles, which means DG’s squeeze is only getting tighter. Yes, DG’s stock is up 15% YTD, crushing the XRT’s -16%, but that’s just recessionary fear-mongering on discount. Now, with the tariff delay, those fears are on clearance.

Walmart is the predator, DG the prey. If the economy tanks, Walmart will feast on DG’s customer base. Gordon Haskett downgrades DG to Reduce, sticking with a $75 PT. Because in the race between a dollar store and a retail behemoth, the behemoth always wins—and DG’s run looks about as sustainable as a $1 pair of flip-flops.

Verizon

What happened? On Friday, Evercore upgraded Verizon Communications Inc (NYSE:VZ) to Outperform with a $48 price target. Verizon is also a New Top Pick.

*TLDR: VZ up 11%, tops S&P, lags rivals: upgraded.

What’s the full story? VZ’s stock is up 11% YTD, crushing the S&P’s -10% as investors flock to the defensive allure of wireless—domestic, tariff-resistant, and reliable. But there’s a kicker…VZ is still lagging behind T and TMUS, up 19% and 16%, respectively, extending years of underperformance. T’s executing a turnaround, and TMUS is riding a growth narrative. VZ? Stuck walking a tightrope. It’s the postpaid phone champ, but premium pricing demands a defensive stance in a cutthroat market.

Still, management is delivering: Consumer postpaid trends are improving, Business wireless is gaining momentum, and broadband targets are being hit. The stock’s relative underperformance is overdone, and Evercore argues it’s not pricing in the resilience of wireless service revenue growth, the fiber push, the Frontier acquisition upside, or the $5B/year excess capacity post-2027.

The wireless tide is going out—competition is heating up, and macro pressures loom. But in a market drowning in uncertainty, wireless names like VZ will stay afloat. Evercore upgrades it from In Line to Outperform, pegging a $48 PT—6.5x EV/EBITDA and 11.7x P/FCF on 2026 estimates—vs. T at 6.6x/10.8x and TMUS at 9.4x/15.5x.

VZ is now the top wireless pick and the best Value play at Evercore.