Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BIG LOTS UPGRADED AT PIPER: Piper Jaffray analyst Peter Keith upgraded Big Lots to Overweight and raised his price target for the shares to $53 from $43. The analyst expects to a "strong" tax refund season in early 2019 for lower/moderate-income families. A key driver is the increase of the Child Tax Credit, which should "solidly benefit" Big Lots' comp trends in the first half of 2019, Keith tells investors in a research note.
WELLS UPGRADES BOOKING TO OUTPERFORM: Wells Fargo analyst Robert Coolbrith upgraded Booking Holdings to Outperform from Market Perform and raised his price target on the shares to $2,150 from $2,000. With favorable view of Q3 performance and management strategy, the analyst believes current valuation offers a favorable entry point. Coolbrith notes that shares remain significantly below historical valuation averages and highlights recent mix shift to merchant model bookings as a potentially underappreciated tailwind for working capital dynamics and free cash flow growth going forward.
RAYMOND JAMES UPS VIKING TO STRONG BUY, CUTS MADRIGAL TO SELL: Raymond James analyst Steven Seedhouse upgraded Viking Therapeutics (VKTX) to Strong Buy from Outperform following the recent AASLD meeting, stating that he expects increased comfort with Viking's path to market. Seedhouse also expects the M&A premium in Madrigal Pharmaceuticals (MDGL) to shift to Viking, which has a more attractive valuation if there is a rush on NASH assets. Seedhouse also downgraded Madrigal shares to Underperform, a Sell-equivalent rating, from Market Perform exiting AASLD, stating that he no longer thinks MGL-3196 is better than Ocaliva, Aramchol, or Elafibranor, let along VK2809. He cut his view on the probability of success to 50% from 80%, and cut his patient penetration estimates in half, for Madrigal's NASH treatment.
CREDIT SUISSE CALLS ALASKA AIR TOP PICK IN AIRLINES: Credit Suisse analyst Jose Caiado initiated coverage of the seven largest U.S. airlines, calling Alaska Air (ALK) his top pick in the group. Caiado thinks there is "significant skepticism" around non-fuel unit cost trends owing to Alaska Air's slowing capacity growth. However, he is optimistic that the company can limit that inflation to 2% given a number of "underappreciated cost tailwinds." Caiado also started Delta Air Lines (DAL) and United Continental (UAL) with Outperform ratings.
Big Lots
+1.5 (+3.62%)
Booking Holdings
-1.48 (-0.08%)
Viking Therapeutics
+0.35 (+3.00%)
Madrigal Pharmaceuticals
+1.16 (+0.90%)
Alaska Air
+0.27 (+0.40%)
Delta Air Lines
+0.51 (+0.91%)
United Airlines
+0.19 (+0.21%)