Wingstop, CarMax, health stocks: Analyst calls


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Wingstop initiated at Wells Fargo with an overweight rating. The analyst says the stock could bounce back later this year due to multi-year sales drivers and strong free cash flow. The firm does acknowledge near-term hurdles, like a difficult backdrop and weak comp sales in the first half of the year. But the analyst also set the price target to $270 a share. That’s implying 23% increase from the stock’s last close. Next up, we’re tracking shares of CarMax getting an upgrade from Stevens ahead of its earnings report to overweight from equal rates. Now, the analyst is optimistic about the real time unit sales and credit metrics, particularly in the first half of the year. So the firm also noting here that the used car retailer will likely marginally benefit from most tariff scenarios, at least in the first year. Finally, a couple of calls on the health care companies. Morgan Stanley initiated coverage of Tenet Healthcare with an overweight rating. The analyst saying, Tenet’s business improvements aren’t yet reflected in the stock, and while government spending cuts present a short-term risk, long-term investors may find a good opportunity. The firm also initiating Tenet’s peer, Universal Health Services. That stock given an equal weight rating and the analyst says that the risk reward is balanced with overhang from uncertainty around potential government spending cuts.


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