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(This is CNBC Pro’s live coverage of Thursday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Some of the biggest calls on Thursday involved a banking giant and a red hot insurance stock. Wells Fargo raised its price target on Bank of America, now calling for more than 15% upside. Meanwhile, HSBC upgraded Allstate after a strong start to the year. Check out the latest calls and chatter below. All times ET. 5:52 a.m.: Bank of America turns bullish on Estee Lauder Bank of America moved off the sidelines on Estee Lauder shares as the bank sees a “Cinderella story.” Analyst Bryan Spillane upgraded the beauty products maker to buy from neutral. Spillane also upped his price target by $10 to $170, which now implies a 17.2% upside. “There are a range of initiatives in motion to recover profitability, sharpen brand/product efficacy/proposition and achieve more balance (sales growth and profit) across channels and geographies,” Spillane wrote in a Thursday note to clients. While Estee Lauder’s Chinese market is still volatile, Spillane said the inventory has been cleared and the company is working to reduce its reliance on the region. Now, Spillane said the Tom Ford and Aveda parent is back to focusing on marketing and new products. Shares rose about 2% in Thursday premarket trading following the upgrade. Estee Lauder’s stock has bucked the market uptrend this year, slipping nearly 1% compared with the start of 2024. — Alex Harring 5:42 a.m.: Buy DraftKings following Wednesday’s drop, JPMorgan says Traders should snap up DraftKings after a tough session, according to JPMorgan. The sports-betting stock tumbled nearly 7% on Wednesday. But analyst Joseph Greff has an overweight rating and price target of $55, reflecting the potential for a 21.3% rally over Wednesday’s closing level. Wednesday’s decline was “largely attributable to multiple headlines simultaneously causing investor concerns,” Greff told clients. “Our view as well as general sentiment is that the decline in DKNG’s stock … largely seems overdone.” Greff said the proposed ban for college prop wagering isn’t considered a real headwind for margin expansion. That’s especially true given the low mix and when considering that many states already have some form of restriction on collegiate betting, he added. And Greff said DraftKings and competitor FanDuel can actually benefit from any increases to regulations on promotions or advertising. He said the pair could actually see higher margins if this happens. Finally, he acknowledged that a New Jersey bill to raise taxes on gaming revenue could cause headwinds. But Greff said the company has enough levers to keep margins strong, even if the legislation passes. Despite Wednesday’s tumble, shares are still up more than 28% this year. — Alex Harring 5:37 a.m.: HSBC upgrades Allstate Allstate shares are poised to build on their strong start to 2024, according to HSBC. Analyst Vikram Gandhi upgraded the insurance stock to buy from hold, raising his price target to $190 from $158. The new forecast implies upside of 11.9% from Wednesday’s close. Allstate has outperformed year to date, surging 21.3% in that time, while the S & P 500 is up 10%. ALL .SPX YTD mountain ALL vs SPX year to date “The US personal lines space may be hitting a sweet spot as continuing rate momentum coupled with decelerating inflationary trends implies scope for strong margin expansion over the next couple of years,” Gandhi wrote. “We see much improved prospects for a turnaround in its underwriting profitability, driven by a combination of decisive management actions, and a more conducive regulatory environment.” 5:37 a.m.: Wells Fargo raises price target for ‘Goliath’ Bank of America Wells Fargo sees more room to run for Bank of America shares after a strong start to the year. Analyst Mike Mayo raised his price target for the bank stock by $4 to $44, implying a 16.4% upside over Wednesday’s close. He has an overweight rating on the stock. Mayo said it’s one of the “best positioned” large-cap banks when looking at deposits, costs management, credit quality or reputation. It’s also a technology leader in the sector, he said, which can help it expand deposit share and prove elite operating leverage. “Overall, BAC is a Goliath at a time when Goliath is winning,” Mayo wrote. Mayo also raised expectations for first quarter per-share earnings by 1 cent to 74 cents and by 5 cents for the whole year to $3.15. That move is largely tied to better models for investment banking and trading, he said. The analyst’s call comes amid a period of outperformance, with shares up more than 12% since the start of 2024. — Alex Harring
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