(That is CNBC Professional’s reside protection of Tuesday’s analyst calls and Wall Avenue chatter. Please refresh each 20-Half-hour to view the newest posts.) Analyst calls on Tuesday embody an improve to a little-known agriculture inventory. Financial institution of America raised its score on Adecoargo to purchase , with its worth goal pointing to greater than 26% upside. The financial institution stated shares ought to profit from a possible financial shift in Argentina after the nation’s latest presidential election. To make sure, there have been additionally some downgrades. Piper Sandler reduce its score on Albemarle to underweight from impartial, citing lithium pricing pressures. Take a look at the newest calls and chatter under. 5:55 a.m. ET: Brazilian monetary disruptor XP might acquire greater than 30%, JPMorgan says JPMorgan is bullish on Brazilian monetary companies platform XP , which the financial institution says provides a variety of merchandise which can be slowly “disrupting” banks, pushing XP’s valuation greater. Yuri Fernandes upgraded shares to obese and stated it was a most popular inventory amongst Brazilian financials. The analyst elevated his 2024 year-end worth goal to $30 per share, which suggests 32.2% potential upside from Monday’s shut. “We believe XP is well positioned to continue gaining share over incumbents on different verticals, driven by a combination of broader product offerings, better customer satisfaction, and increasing brand awareness,” Fernandes wrote. “Lower rates going forward should be a tailwinds … additionally, we started to see indications of capital being returned to shareholders, which will drive higher ROEs and comparisons to banks should decrease.” The agency expects a minor quarter-over-quarter earnings lower for XP within the fourth quarter, however expects gradual earnings acceleration in 2024. The inventory has popped almost 48% this 12 months. — Pia Singh 5:36 a.m. ET: Piper Sandler downgrades Albemarle on world lithium worth declines Analyst Charles Neivert lowered his score on Albemarle to underweight from impartial, citing a “substantial deterioration” in world lithium markets. He additionally slashed his worth goal by $12 to $128, which means shares. “It is our belief that the market conditions now present will undermine any significant rebound in the pricing environment for at least the next few quarters, leading to further earnings erosion and estimate reduction,” Neivert wrote in a Tuesday word. “By virtue of their contract structures for lithium products, [Albemarkle] will likely experience significant revenue and earnings degradation in 4Q23 and further declines into 2024.” Neivert identified that the lithium carbonate worth in China has fallen by nearly 50% through the fourth quarter, and that the U.S. and Europe have additionally seen comparable declines by way of magnitude and worth. Weaker near- and mid-term outlook for lithium markets will significantly have an effect on batteries and electrical autos, he stated. Shares of Albemarle, the world’s largest lithium producer, have dropped 44.7% this 12 months. Shares are down 2.5% in early buying and selling Tuesday. — Pia Singh 5:36 a.m. ET: Financial institution of America upgrades Adecoagro to purchase BofA raised its score on Latin American agriculture inventory Adecoagro to purchase from impartial and elevated its worth goal on U.S.-listed shares to $14 from $12.50 per share. The brand new forecast implies upside of almost 27%. The corporate crops, harvests and sells merchandise corresponding to grains, rice and sugarcane. Yr so far, shares have rallied 33.1%, although they’ve misplaced greater than 3% to begin December. AGRO YTD mountain AGRO in 2023 “We are more constructive on Adecoagro … as: (1) we estimate 28% EBITDA growth in 2024 (excluding land sale in 2023) to US$552mn, half of it driven by much better yields in Argentina, and half by sugarcane crushing volumes, cost dilution and higher sugar and ethanol prices in USD terms; (2) the stock is still trading at an attractive valuation at 13.7% [free cash flow] yield in 2024E and 17% in 2025E; and (3) upside risks depending on the economic developments in Argentina post elections,” wrote analyst Isabella Simonato. “After the presidential elections in Argentina in early November, BofA economists forecast significant devaluation of the Argentine peso in 2024-25,” the analyst added. “A weaker peso is positive for Adecoagro since half of the company’s costs for the crop business are in USD (agricultural inputs mainly) and 100% of revenues are in USD.” — Fred Imbert
