Check out today's top analyst calls from around Wall Street, compiled by The Fly.
CITI INITIATES BEYOND MEAT AT SELL, SEES 15% SHARE DOWNSIDE: Citi analyst Wendy Nicholson initiated coverage of Beyond Meat (BYND) with a Sell rating and $123 price target. The stock closed Thursday down $3.76 to $141.22. Beyond Meat is a leader in the plant-based meat market, benefiting from a "well-known brand" in both the refrigerated meat section of the grocery store and more recently, in foodservice locations, Nicholson tells investors in a research note. However, the company faces both near-term pressure as a result of its exposure to the foodservice segment and longer-term pressure as the category becomes more competitive, says the analyst. As a result, Nicholson sees 15% downside in shares.
FOOT LOCKER UPGRADED: Susquehanna analyst Sam Poser upgraded Foot Locker (FL) to Positive from Neutral with a price target of $34, up from $25. Four months into the coronavirus crisis, Poser said his checks indicate that stimulus money "is burning a hole in many consumers' pockets" and for the most part consumers have stopped spending money on dining out and traveling, leaving funds available to shop for footwear and apparel. He raised his estimates for Foot Locker and several others in the space - including Crocs (CROX), Deckers Brands (DECK), Hibbett Sports (HIBB) and Skechers (SKX) - to reflect the benefits of the increased consumer spending. In his upgrade of Foot Locker, Poser also notes Foot Locker's better than expected near-term trends and his hope that those trends will stick to some degree.
AMAZON, NETFLIX GET STREET-HIGH PRICE TARGETS: Citi analyst Jason Bazinet raised the firm's price target on Amazon.com (AMZN) to $3,550 from $2,700 and keeps a Buy rating on the shares. The analyst rolled forward the valuation framework to 2022 from 2021 and applied a 25 times multiple to his 2022 EBITDA estimate. Bazinet estimates Amazon's share of the U.S. e-commerce market increased from 28% in 2015 to 38% in 2019, and he expects it to reach 43% by 2022. Further, Amazon's market share in shipping is a "powerful, long-term tailwind," the analyst writes in a research note. He estimates the global parcel market excluding China will generate around $400B in revenue in 2022 and expect Amazon's market share "will take several years to ramp."
Meanwhile, Goldman Sachs analyst Heath Terry raised the firm's price target on Netflix (NFLX) to $670 from $540 and reiterates a Conviction Buy rating on the shares. The analyst expects Netflix to report Q2 results "well above guidance" with at least 12.5M net subscriber additions. Quarterly app downloads reached a record high and year-over-year downloads growth reached its highest level since Q1 of 2016 during the quarter, Terry tells investors in a pre-earnings research note. The analyst attributes this to content growth on the platform, a lack of competition for entertainment hours and spend driving churn lower, and more time being spent at home during COVID-19. Further, Terry believes consensus estimates for the second half of 2020 and beyond remain too low.
LENDINGCLUB DOWNGRADED AT OPPENHEIMER: Oppenheimer analyst Jed Kelly downgraded LendingClub (LC) to Perform from Outperform and removed the firm's prior $25 price target. Kelly believes LendingClub is on the correct roadmap in pivoting to a bank model once the Radius Bank acquisition receives regulatory approval and closes, but notes that management expects Q2 originations to decline 90% year-over-year, and the key initiative is now capital preservation in order to appease regulators. Despite trading at 0.5x price to tangible book, the analyst has a tough time identifying any near-term catalysts and expects shares to remain range-bound, based on a difficult fundamental backdrop creating limited visibility on originations and funding. :the
REDFIN DOWNGRADED AT RBC: RBC Capital analyst Mark Mahaney downgraded Redfin (RDFN) to Sector Perform from Outperform and maintained a $41 price target. The analyst views valuation as "reasonably" balanced and said fundamentals remain "intact."
Beyond Meat
-8.85 (-6.27%)
Foot Locker
+0.44 (+1.57%)
Amazon.com
+10.81 (+0.34%)
Netflix
+14.08 (+2.77%)
LendingClub
-0.105 (-2.18%)
Redfin
-1.22 (-3.04%)