Check out today's top analyst calls from around Wall Street, compiled by The Fly.
TOUGHER COMPS IN 2021: UBS analyst Eric Sheridan downgraded Netflix (NFLX) to Neutral from Buy with an unchanged $535 price target. The analyst believes the company's upcoming earnings should continue to highlight the "widespread benefit" of the COVID-19 environment in terms of its consumption habits and "strong" user growth dynamics, but also sees the current stock price already reflecting "many of the long-term business moat dynamics such as sustained growth and steady margin expansion." Sheridan added that he would rather be constructive on the stock at levels reflecting potential subscriber volatility as tougher comps are expected in 2021.
'PERFECTLY POSITIONED' TO CAPTURE SPENDING: Wedbush analyst Seth Basham upgraded Wayfair (W) to Outperform from Neutral with a price target of $240, up from $165. Amidst the coronavirus, consumers have shifted their spending to the home goods category and to the online channel, leaving Wayfair "perfectly positioned" to capture this spending, Basham contended. Further, the analyst noted that increasing coronavirus cases are once again leading consumers to another surge in searching for and shopping at Wayfair based on Google Trends data, and the strength could persist well into 2021 given the limited potential to contain the virus with a vaccine near-term. Consumers have spent substantially on home office and outdoor furniture in recent months, but he expects home-related spending to continue to broaden in the coming months as well.
SELL SPOTIFY: UBS analyst Eric Sheridan double-downgraded Spotify (SPOT) to Sell from Buy with a higher price target of $204, up from $189. Sheridan noted that the 47% run-up in the stock over the past month is pricing in the "entirety of upside optionality" from growth in podcasting that the analyst modeled in the coming years, including subscriber and engagement growth, shift in engagement habits, and potential unit economics improvement. However, while podcasting can broaden Spotify's user base, contrary to the bull case, he is skeptical that it will alter supply case dynamics relative to the music industry.
BUY HARLEY: BMO Capital analyst Gerrick Johnson upgraded Harley-Davidson (HOG) to Outperform from Market Perform with a price target of $33, up from $23. The analyst is more positive about the outlook for the company given recent management changes. New CEO Jochen Zeitz brings a "high level of credibility that has been embraced by investors," Johnson told investors in a research note. As strategic changes are implemented and used bike prices and dealer inventory levels improve, evidence of Harley-Davidson's turnaround should begin to take hold, the analyst contended.
STRONG SECULAR GROWTH TRENDS: Goldman Sachs analyst Matthew O'Neill started coverage of 15 companies in the Payments & IT Services space, favoring companies with "strong secular growth trends" and those with the opportunity for total addressable market expansion. Further, the analyst believes COVID-19 will accelerate greater adoption of contactless payments and e-commerce, benefiting the networks, acquirers and processors. O'Neill also thinks "consensus Cash App enthusiasm" could prove too optimistic in the near-term. The analyst initiated
Netflix
-14.64 (-2.79%)
Wayfair
+0.15 (+0.07%)
Spotify
-11.11 (-4.25%)
Harley-Davidson
+0.55 (+2.12%)
Block
-3.84 (-3.24%)
MasterCard
+0.81 (+0.28%)
Visa
-0.27 (-0.14%)
Euronet
-0.86 (-0.90%)
Western Union
-0.115 (-0.54%)
Paychex
-0.73 (-1.02%)
ADP
-2.57 (-1.77%)
Wex
-3.44 (-2.25%)
Changed to CPAY
-2.13 (-0.86%)
Open Lending
+0.54 (+3.45%)
EVO Payments
-0.27 (-1.28%)
Global Payments
-0.91 (-0.57%)
FIS
-0.89 (-0.66%)
Fiserv
+1.17 (+1.24%)
Evertec
+ (+0.00%)