Brinker International (NYSE:EAT) earned an upgrade from Stifel, which comes after the analysts conducted investor meetings with Brinker’s management team. They came away with a more optimistic view of the turnaround efforts at Chili’s, a subsidiary of Brinker International.
Stifel analysts upgraded the company from Hold to Buy and raised the price target from $38 to $45.
The analysts expressed confidence in Brinker’s strategic plan, which they believe aligns with successful restaurant turnaround strategies implemented by brands like Olive Garden, Popeyes, and KFC. They highlighted that Chili’s faces operational challenges, but there are multiple opportunities in the coming quarters to make changes that can enhance the experiences of both team members and customers.

Nike (NYSE:NKE) posted fiscal first-quarter earnings that exceeded expectations, resulting in a 6% surge in its stock price on Friday, even though the company missed revenue estimates. The revenue shortfall was attributed to challenges in North America and an economic slowdown in its crucial Chinese market.
For the fiscal first quarter, Nike reported earnings per share (EPS) of $0.94 on revenue of $12.94 billion. Street estimated EPS of $0.75 on revenue of $13.02 billion.
While Nike brand digital sales recorded a 2% increase, growth in the EMEA (Europe, Middle East, and Africa), Greater China, and APLA (Asia Pacific and Latin America) regions partially offset a decline in North America. Sales in North America dropped by 2%, while sales in China, a critical market for the company, rose by 5% to $1.74 billion, though this figure fell short of Street’s estimate of $1.84 billion.

AB InBev (NYSE:BUD) saw its stock price rise by more than 3% on Friday, driven by a rare upgrade of the beverage giant. AB InBev has been contending with a slowdown in Bud Light sales amidst a controversial advertising campaign involving transgender influencer Dylan Mulvaney.
BofA Securities analysts upgraded the stock from Neutral to Buy and increased the price target to €65 from €59. It marks the first time in three years that the firm has issued a Buy recommendation for the stock, driven by the analyst’s perception of a margin turning point.
In the analysts’ view, AB InBev’s margins are at a critical juncture. They believe that the pressures on the cost of goods sold (COGS) have started to ease, the over $1 billion profit impact from Bud Light is now incorporated into the base, and the higher cost of doing business that had been weighing on margins in recent years is largely accounted for in the base figures.

Bumble (NASDAQ:BMBL) shares rose more than 3% on Friday after Loop Capital upgraded the company to Buy from Hold with a price target of $18.00. The analysts noted that it’s the first time they’ve issued a Buy rating on Bumble since they began covering the company two and a half years ago.
The analysts mentioned that the stock is currently trading near its 52-week low and has declined over 30% year-to-date, which they view as de-risked.
The analysts highlighted Bumble’s strong cash position, effective use of interest rate swaps, and free cash flow generation as factors that protect the company’s balance sheet. In their commentary, the analysts also pointed out that Bumble trades at a lower EV/EBITDA multiple compared to its competitor Match Group and that investor sentiment is bearish, potentially undervaluing Bumble’s growth prospects in the online dating industry.

Monness Crespi Hardt analysts downgraded Spotify (NYSE:SPOT) from Buy to Neutral. The analysts explained that Spotify’s stock has seen significant growth this year, with a 95% increase. Given this substantial outperformance and growing concerns about potential market challenges, the analysts chose to step back from their Buy rating on Spotify.
The analysts mentioned that Spotify is set to release its third-quarter results on Oct 24, and although the company is well-positioned for long-term success with platform enhancements, expansion into the digital advertising market, audio innovations, and cost improvements, it faces stiff competition and operates with slim profit margins. Consequently, the firm believes that Spotify could be entering a more challenging phase.