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WBA

Walgreens Boots Alliance

$63.19

-0.54 (-0.85%)

, CMG

Chipotle

$455.71

-8.54 (-1.84%)

10:22
07/10/18
07/10
10:22
07/10/18
10:22

On The Fly: Top five analyst downgrades

Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Walgreens Boots Alliance (WBA) downgraded to In Line from Outperform at Evercore ISI. 2. Chipotle (CMG) downgraded to Underperform from Neutral at Mizuho with analyst Jeremy Scott saying after an 80% rally since the new CEO appointment, Chipotle shares currently price in an "aggressive recovery" in both comps and margins. 3. Biogen (BIIB) downgraded to Neutral from Outperform at Baird with analyst Brian Skorney saying that following a quick ~35% move since his April upgrade, he is taking his gains off the table on the back of the BAN2401 results. 4. eBay (EBAY) downgraded to Hold from Buy at SunTrust with analyst Youssef Squali citing the anticipated impact of the recent U.S. Supreme Court decision that forces collection of online sales tax on a state level and reverses the 1992 e-commerce precedent. 5. Square (SQ) assumed and downgraded to a Hold from Buy at Jefferies and a Perform from Outperform at Oppenheimer. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

WBA

Walgreens Boots Alliance

$63.19

-0.54 (-0.85%)

CMG

Chipotle

$455.71

-8.54 (-1.84%)

BIIB

Biogen

$342.19

-11.6 (-3.28%)

EBAY

eBay

$37.42

-0.49 (-1.29%)

SQ

Square

$66.06

-0.41 (-0.62%)

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WBA Walgreens Boots Alliance
$63.19

-0.54 (-0.85%)

07/10/18
EVER
07/10/18
DOWNGRADE
Target $67
EVER
In Line
Walgreens Boots Alliance downgraded to In Line at Evercore ISI on Amazon threat
As reported earlier, Evercore ISI analyst Ross Muken downgraded Walgreens Boots Alliance to In Line from Outperform, saying it is increasingly difficult to see the company outperforming after Amazon (AMZN) signalled its intention to enter the pharmacy business with the acquisition of PillPack. Muken adds that the market now has sufficient amount of information to worry about the company's long-term margins, and its "current wall of worry is simply too high to climb" . Muken still raised his price target on Walgreens to $67 from $64.
07/10/18
EVER
07/10/18
DOWNGRADE
EVER
In Line
Walgreens Boots Alliance downgraded to In Line from Outperform at Evercore ISI
07/09/18
07/09/18
DOWNGRADE

On The Fly: Top five analyst downgrades
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Procter & Gamble (PG) downgraded to Hold from Buy at Jefferies with analyst Kevin Grundy saying slowing market growth, volatility in emerging markets, U.S. retail difficulties, the stronger U.S. dollar and "pricing challenges" should drive estimates lower. 2. SeaWorld (SEAS) and Six Flags (SIX) were downgraded to Market Perform from Outperform at Wells Fargo. 3. Walgreens Boots Alliance (WBA) downgraded to Neutral from Buy at Citi with analyst Ralph Giacobbe saying he finds it difficult to argue for "meaningful multiple expansion" given headwinds from industry pressures and a dynamic and changing backdrop. 4. Flowers Foods (FLO) downgraded to Hold from Buy at Vertical Group. 5. Wayfair (W) downgraded to Market Perform from Outperform with the firm citing valuation. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
07/09/18
SBSH
07/09/18
DOWNGRADE
Target $69
SBSH
Neutral
Walgreens Boots Alliance downgraded to Neutral from Buy at Citi
Citi analyst Ralph Giacobbe downgraded Walgreens Boots Alliance (WBA) to Neutral after assuming coverage of the name. The analyst lowered his price target for the shares to $69 from $76. The analyst finds it difficult to argue for "meaningful multiple expansion" given headwinds from industry pressures and a dynamic and changing backdrop. Further, Amazon's (AMZN) recent acquisition of PillPack reignites "further competitive fears," Giacobbe tells investors in a research note.
CMG Chipotle
$455.71

-8.54 (-1.84%)

07/10/18
MZHO
07/10/18
DOWNGRADE
Target $330
MZHO
Underperform
Chipotle downgraded to Underperform from Neutral at Mizuho
Mizuho analyst Jeremy Scott downgraded Chipotle Mexican Grill to Underperform while raising his price target for the shares to $330 from $300. The stock closed yesterday up $12.72, or 3%, to $463.89. After an 80% rally since the new CEO appointment, Chipotle shares currently price in an "aggressive recovery" in both comps and margins, Scott tells investors in a research note. The analyst does not see "clear catalysts that can justify significant earnings upside." As such, he recommends investors "reduce their risk."
06/28/18
MAXM
06/28/18
NO CHANGE
Target $420
MAXM
Hold
Chipotle price target lowered to $420 from $435 at Maxim
Maxim analyst Stephen Anderson lowered his price target on Chipotle to $420 from $435 and kept his Hold rating after the company's investor call which highlighted its store closures and restructuring plans. Anderson says the one-time restructuring charges are leading him to lower his Q2 EPS view to $1.41 from $3.04 and his FY18 EPS view to $6.98 from $10.14. The analyst adds that investors may be disappointed with Chipotle's lack of updated guidance given that Q2 is nearing its end, and also believes that the management missed an opportunity to discuss the positives of "international expansion potential and boosting shareholder returns". After a "strong year-to-date gain", Anderson states that Chipotle stock price is balanced in terms of positives and risks.
07/09/18
BARD
07/09/18
NO CHANGE
Target $500
BARD
Outperform
Chipotle's near-term setup favorable, says Baird, adding Fresh Pick designation
Baird analyst David Tarantino added a Fresh Pick designation to Chipotle Mexican Grill ahead of the company's Q2 results on July 26, telling investors in a research note that the near-term setup appears favorable and that he sees the potential to report "good" quarterly results, with possible upside to EPS estimates. The analyst says he expects same-store sales momentum to accelerate in Q3, leading to greater investor confidence in the company's turnaround prospects under the leadership of new CEO Brian Niccol and more bullish investor sentiment on the shares. Tarantino has an Outperform rating and $500 price target on shares.
06/29/18
RHCO
06/29/18
NO CHANGE
Target $490
RHCO
Buy
Chipotle price target raised to $490 from $410 at SunTrust
SunTrust analyst Jake Bartlett raised his price target on Chipotle to $490 and kept his Buy rating after the company's investor call. The analyst note that while he was disappointed by the absence of specific targets or timelines for the company's sales initiatives, he expects the company's digital sales process, menu innovation, service improvement, and new marketing strategy to have a near term impact, producing a multi-year recovery in comps. Bartlett also raises his FY18 EPS view to $9.13 from $9.11 and FY19 to $13.60 from $13.55 following this week's call.
BIIB Biogen
$342.19

-11.6 (-3.28%)

07/10/18
BARD
07/10/18
DOWNGRADE
Target $323
BARD
Neutral
Biogen downgraded to Neutral from Outperform at Baird
Baird analyst Brian Skorney downgraded Biogen to Neutral and told investors in a research note that following a quick ~35% move since his April upgrade, he is taking his gains off the table on the back of the BAN2401 results. Skorney says he does not believe such a "seismic" move is justified on the back of "pretty ambiguous" Alzheimer's data. The analyst says he is stepping to the sidelines, but keeping his $323 price target.
07/09/18
DZBN
07/09/18
DOWNGRADE
DZBN
Hold
Biogen downgraded to Hold from Buy at DZ Bank
07/10/18
RBCM
07/10/18
NO CHANGE
Target $349
RBCM
Sector Perform
Biogen price target raised to $349 from $320 at RBC Capital
RBC Capital analyst Brian Abrahams raised his price target on Biogen to $349, saying his conference call with Martin Sadowski, Associate Professor at the New York University School of Medicine, suggests positive implications for the company's BAN2401 top-line data. Abrahams notes that Sadowski validated the the beta-amyloid hypothesis of the study and also increased his probability of success estimates for '2401 and aducanumab to 65% from 40%. The analyst keeps his Sector Perform rating on Biogen, adding that while the recent upside stock move is justified, the current valuation reflects the implications of the study and offers less favorable risk-reward.
07/10/18
BARD
07/10/18
DOWNGRADE
BARD
Neutral
Biogen downgraded to Neutral from Outperform at Baird
EBAY eBay
$37.42

-0.49 (-1.29%)

06/21/18
BARD
06/21/18
NO CHANGE
BARD
Baird says buy Amazon, eBay, Shopify on Supreme Court ruling selloff
Baird analyst Colin Sebastian says the Supreme Court ruling in favor of South Dakota over Wayfair (W) does not change his positive sector view on e-commerce. The analyst recommends buying shares of Amazon.com (AMZN), eBay (EBAY) and Shopify on weakness related to today's headlines. While other states are now likely to enact similar sales tax legislation, the financial impact to e-commerce companies is likely to be modest, Sebastian tells investors in a research note titled "Online Sales Tax Ruling a Slight Negative, Headlines More Bark Than Bite." He believes the benefits of convenience and selection are larger drivers of e-commerce share gains compared to low pricing and tax avoidance.
07/10/18
RHCO
07/10/18
DOWNGRADE
Target $40
RHCO
Hold
eBay downgraded to Hold at SunTrust on state online tax SCOTUS ruling
As reported earlier, SunTrust analyst Youssef Squali downgraded eBay to Hold from Buy and lowered his price target to $40 from $48, citing the anticipated impact of the recent U.S. Supreme Court decision that forces collection of online sales tax on a state level and reverses the 1992 e-commerce precedent. The analyst notes that while Q2 results will not be impacted by the ruling, the legal tax changes increase the probability of a slowdown in gross merchandise volume in FY19 and beyond, just as this operating metric has started to show some improvement. Squali adds that eBay's more positive developments around Payments, StubHub and buybacks can limit the downside on the stock.
07/10/18
RHCO
07/10/18
DOWNGRADE
RHCO
Hold
eBay downgraded to Hold from Buy at SunTrust
06/21/18
KEYB
06/21/18
NO CHANGE
KEYB
Supreme Court ruling negative for Wayfair, eBay and Etsy, says KeyBanc
After the Supreme Court ruled that states can require online merchants to collect sales taxes, KeyBanc analyst Edward Yruma called the ruling a negative for Wayfair (W), arguing that it may reduce some of the price differential that has helped it gain share from traditional peers. The ruling is also a negative, but to a lesser degree, for eBay (EBAY) and Etsy (ETSY), said Yruma, who views the impact on those two as more related to compliance and implementation. He adds that the news could be a modest positive for retailers of high-ticket and branded products, such as Best Buy (BBY), Home Depot (HD), Lowe's (LOW), La-Z-Boy (LZB), Kirkland's (KIRK), RH (RH) and Williams-Sonoma (WSM).
SQ Square
$66.06

-0.41 (-0.62%)

07/10/18
PIPR
07/10/18
NO CHANGE
Target $63
PIPR
Neutral
Square price target raised to $63 from $49 at Piper Jaffray
Piper Jaffray analyst Jason Deleeuw raised his price target for Square to $63 after updating his model to reflect the recent acquisition of Weebly and the convertible note issuance. The analyst continues to believe Square's guidance is conservative relative to the revenue growth momentum being driven by its "expanding solution ecosystem for merchants." Deleeuw keeps a Neutral rating on the shares citing an "elevated EV/revenue relative valuation," but he acknowledges that downside risk to consensus revenue estimates is low.
07/10/18
OPCO
07/10/18
DOWNGRADE
OPCO
Perform
Square assumed with a Perform from Outperform at Oppenheimer
Oppenheimer analyst Glenn Greene downgraded Square to Perform from Outperform without a price target after assuming coverage of the name. While the analyst is optimistic that Square's "robust growth will persist," he estimates that greater than 30% and 55% of annual revenue and EBITDA growth are priced into the shares. As such, he sees "meaningful risk if growth moderates or execution falters."
07/10/18
JEFF
07/10/18
DOWNGRADE
Target $63
JEFF
Hold
Square assumed with a Hold from Buy at Jefferies
Jefferies analyst John Hecht downgraded Square to Hold from Buy after assuming coverage of the name. The analyst raised his price target for the shares to $63 from $60. The analyst sees "broadly positive fundamentals" for the company, but believes the shares are fairly valued at current levels. He views competition as well as "high growth targets in nascent business segments" as risks for Square.
07/06/18
MSCO
07/06/18
NO CHANGE
MSCO
Equal Weight
Square still committed to obtaining bank charter, says Morgan Stanley
Morgan Stanley analyst James Faucette noted that Square withdrew its ILC application with the FDIC, but he believes the company remains committed to obtaining a bank charter. The withdrawal of the current application could set back the timing, but he believes that 2019 could still be a realistic goal and that refiling with a more robust application along with an improved balance sheet could increase the odds of success, Faucette tells investors. He maintains his Equal Weight rating on Square.

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