Monday’s analyst calls: Best Buy gets a double upgrade, consumer stock to pop more than 20%

(This is CNBC Pro’s live coverage of Monday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Best Buy and a consumer goods giant were among the stocks being talked about by analysts to start the week. Citi double upgraded Best Buy to buy from sell, and its new price target indicates upside of 18%. RBC, meanwhile, raised its rating on Kimberly-Clark to outperform, calling for a gain of more than 20% ahead. Check out the latest calls and chatter below. All times ET. 6 a.m.: Piper Sandler upgrades Masimo An upcoming split at Masimo can spark a strong rally ahead for the stock, according to Piper Sandler. The firm upgraded the health technology company to overweight from neutral. Analyst Jason Bednar accompanied the move by raising his price target to $160 from $126, implying upside of 29% from Friday’s close. Masimo recently announced its plans to spin off its consumer unit, which Bednar agreed was a “good move for shareholders” that could have lasting benefits. “We think the scenario setup here skews positively for equity holders regardless of what unfolds with the pending Consumer separation and the upcoming shareholder meeting,” the analyst added. Meanwhile, the company’s core business is improving, with evidence that consumables demand and sensor revenue are returning to more attractive and predictable growth levels, Bednar said. “The commitment to margin improvement at a minimum seems likely to return MASI to its pre-Sound United double-digit EPS growth levels, with upside being a return to the glory days of a bulletproof medtech story with strong cash flow,” he added. — Lisa Kailai Han 5:46 a.m.: Citi double upgrades Best Buy to buy rating from sell There’s a rosy outlook for Best Buy ahead, according to Citi. The bank double upgraded shares of the electronics retailer to a buy rating from sell. It also raised its price target to $100 from $67. This updated price target implies a potential 18% upside from Friday’s close. “We believe the catalyst path looks positive from here with upside potential to both earnings and valuation based on tech replacement cycles underway, new AI innovation providing incremental demand, and margin execution remaining solid,” wrote analyst Steven Zaccone. As a catalyst, Zaccone pointed to a positive inflection point for same-store sales, driven by laptop purchases. This recovery should only grow as AI adoption accelerates, with the analyst seeing a more favorable setup in the latter half of the year due to back-to-school and holiday sales. Other categories outside of laptops will also benefit from lower rates this year as consumers begin to shift spending back towards durable goods. Zaccone added that Best Buy’s margins continue to look solid. “We believe BBY can continue to flex company levers to protect EBIT margin if the competitive environment gets more promotional than expected,” he wrote. Shares of Best Buy are up 8% on the year. — Lisa Kailai Han 5:46 a.m.: RBC upgrades Kimberly-Clark Investors looking for growth with a sense of protection should look to shares of Kimberly-Clark , according to RBC Capital Markets. Analyst Nik Modi upgraded the consumer goods company to outperform from sector perform. His price target of $165, up from $126, implies upside of nearly 24% from Friday’s close. “Since KMB’s analyst day in March, we have been conducting a 360 degree assessment of the company,” Modi said. “The output of our work has made us more bullish on KMB. There is not a specific catalyst driving our view. Just some traditional re-evaluation of an investment thesis underpinned by a lot of work.” The analyst noted he is confident Kimberly-Clark can reach its long-term targets, including operating margins of 18% to 20% along with annual local currency revenue growth of more than 3% compounded annually by 2030. Shares of Kimberly-Clark, which have a dividend yield of more than 3%, are up nearly 10% in 2024. KMB YTD mountain KMB year to date — Fred Imbert