SA analyst upgrades/downgrades: DKNG, CG, DECK, BROS

Recent analyst actions highlight significant movements in the stock evaluations of companies such as Deckers Outdoor Corporation (NYSE:DECK) and DraftKings (NASDAQ:DKNG). These companies have garnered attention due to investment opportunities and strategic acquisitions, respectively. Conversely, Dutch Bros (NYSE:BROS) and The Carlyle Group (NASDAQ:CG) have experienced downgrades based on various challenges and market dynamics.

Upgrades

• Deckers Outdoor Corporation (NYSE:DECK): Upgrade Hold to Buy by Caffital Research. Despite a negative market reaction to Q2 financials, the analyst sees a potential upside due to international brand momentum, particularly for HOKA.

  “I believe that the concern is now overpriced in Deckers’ valuation – HOKA still has a strong long-term runway, especially internationally, and the growth story isn’t over yet despite clear deceleration. The fair value estimate is down slightly from $131.6 previously.”

• DraftKings Inc. (NASDAQ:DKNG): Upgrade Hold to Buy by Ahmed Abdelazim. The analyst highlights DraftKings’ strategic move into prediction markets through the acquisition of Railbird, providing new regulatory leverage and potential long-term financial benefits.

  “DraftKings’ acquisition of Railbird not only expands its TAM, but it also provides it with significant regulatory leverage…to preserve the tax revenue generated from sports betting, which has been a major boon to regulated states’ finances.”

Downgrades

• The Carlyle Group Inc. (NASDAQ:CG): Downgrade to Hold by Wolf Report. The analyst cites limited upside due to elevated valuations and market volatility, recommending a more cautious approach until better entry points emerge.

  “Peers for the company do exist, but the entire financial space is "crowded" at this time, and there are few opportunities that I see. Blackstone (BX), Apollo (APO), and KKR are the primary peers. All of them are currently at valuations that look similar in terms of forecasts. Expected double-digit growth, but average multiples between 11 and 14, and at those multiples, market-beating rates of return are unlikely.

  I therefore consider this to be unattractive and say that Carlyle is a clear "HOLD" here. If it were to rise above $67/share again, I would consider it a "SELL".

• Dutch Bros Inc. (NYSE:BROS): Downgrade to Hold by Uttam Dey. The analyst points out the high valuation and execution uncertainties associated with new strategic ventures into breakfast foods.

  “Dutch Bros’ new strategy is definitely bold and strong, but the risk for its investors is high, especially when the premium is as rich as I observe below.”