TTWO - Applied Materials Lowe's added to Jeffries franchise picks list

2023-05-17 11:20:38 ET

The Jefferies equity team is shuffling its Franchise Picks list of top-conviction buy-rated stocks, adding three new names.

Applied Materials ( NASDAQ: AMAT ), Lowe's ( NYSE: LOW ) and Exact Sciences ( NASDAQ: EXAS ) join the list of 21 stocks.

• AMAT , price target $140 - "We believe the semi-cap equipment industry has transitioned from flat to DD% secular growth, bolstered by bigger chips and more complex manufacturing," the team said. "We favor AMAT's deposition market exposure & view the stock as an undiscovered AI play. We think shares re-rate to a premium P/E vs. the SPX ( SP500 ) ( SPY ) ( IVV ) ( VOO )."
• LOW , $250 - "We have a favorable outlook on home impv't demand based on housing and demographics factors that we se  bolstering R&R activity. Recent meetings with LOW mgmt. suggested company initiatives are poised to deliver near flat comps Y/Y. Shares trade at a 30% P/E discount to peers, and our '24 EPS forecast is ahead of consensus."
• EXAS , $82 - "We see the co generating a sustainable 10%+ organic revenue CAGR over the next 5+ years, largely driven by rescreening and the rollout of Cologuard 2.0. In addition, we expect '23 to be the year EXAS delivers significant operating leverage, achieving >$100M of adj. EBITDA and turning FCF positive for the first time. Shares trade at an EV of 5.5x our '24 revs, below other high-growth Dx/Medtech comps at 7.0x."

For further details see: