Traders Market Weekly: September 12 to 18 2021



Bernstein upgraded MGM Resorts (MGM) to Outperform from Market Perform with a $58.90 price target. The firm has not given MGM enough credit on the progress made in its interactive strategy through BetMGM and tells investors in a research note that MGM has finally been able to effectuate fully its real estate divestiture strategy and buy out its 50% partner in City Center.

BMO Capital upgraded Carlyle Group (CG) to Outperform from Market Perform with a price target of $65, up from $59, implying 35% total return. The firm expects a “narrowing of the valuation gap” relative to capital-lite peers Blackstone (BX) and Ares Management (ARES), driven by a near-term inflection in organic net flows and earnings growth, a reduction in the perceived cyclicality of Carlyle’s business and further increases in the accrued carry balance. The firm notes, while Carlyle’s recent growth has been below peer, it should inflect in the near term.

Piper Sandler upgraded CareMax (CMAX) to Overweight from Neutral with an unchanged price target of $14. At last week’s analyst and investor day, the firm notes management articulated a clear and focused multi-year strategy that prioritizes organic growth through fiscal 2024. The firm believes the execution risk cited in her July 1 initiation report is “significantly reduced as a result of the company’s strategic shift,” and more than priced in at current share levels.

Raymond James upgraded NGM Biopharmaceuticals (NGM) to Strong Buy from Outperform with a price target of $39, up from $27, given validation of its C3 antibody mechanism and the large potential opportunity for NGM621 in GA. The firm notes that Phase 3 data for Apellis’ (APLS) pegcetacoplan in GA provide strong evidence that complement inhibition is an active mechanism in GA. This makes the large GA market accessible to the few mid-stage clinical complement players with plenty of room for differentiation/optimization, he contends. Near term, a first-look readout for cancer cachexia agent NGM120 at ESMO next week is a free call option.