Check out today's top analyst calls from around Wall Street, compiled by The Fly.
FEDEX CUT TO NEUTRAL AT BOFA: BofA/Merrill analyst Ken Hoexter downgraded FedEx (FDX) to Neutral from Buy and slashed its price target to $200 from $304 following the board's surprise move to change its Express CEO. Hoexter said this rapid change is out of character for the company and may signal a potential miss on Express operational target. The analyst lowered his forecasts and said FedEx is still struggling with its ongoing restructuring at Express, as increased costs from e-commerce impact Express and Ground segments, and believes shares could remain under pressure if the company further amends its profit target. In late morning trading, shares of FedEx are down 5.8% to $189.72.
FIVE BELOW UPGRADED TO BUY AT LOOP: Loop Capital analyst Anthony Chukumba upgraded Five Below (FIVE) to Buy from Hold and raised his price target for the shares to $120 from $110. Five Below is more "economic downturn resistant" than most retailers and has a long square footage growth runway ahead of it, Chukumba said. The analyst thinks Five Below's recent comp results shows improving merchandising and store-level execution as well as growing brand awareness. His price target implies 26% upside from current share levels. In late morning trading, shares of Five Below are up 2.8% to $98.27.
NAVISTAR, OSHKOSH CUT TO SELL AT GOLDMAN: Goldman Sachs analyst Jerry Revich downgraded Navistar (NAV) to Sell from Neutral and lowered his price target to $23 from $43 as part of his broader research note on the Engineering & Construction sector which requires a more selective positioning amid "growing signs of oversupply." The analyst expects a downturn in U.S. truck production to become evident by the end of next year and weigh on margins, even though the business trades at the high end of its historical enterprise value to EBITDA valuation range. Revich added that while the U.S. truck demand accelerated in 2016-2017 amid a "sharp increase in spot rates born of low capital stock, low unemployment, and electronic logging standards that reduced effective capacity," supply has now caught up with demand.
Revich also downgraded Oshkosh (OSK) to Sell from Neutral and lowered his price target to $58 from $66. The analyst expects the company's "Aerial Platform orders to decline following a year of peak industry supply additions," which will drive comparable cycle pressure in the segment. Revich added while that the bulls on the stock will point to the record length of backlog, orders are a more telling indicator of the Oshkosh run-rate demand for the next 6-12 months.
QORVO, SKYWORKS CUT TO SECTOR WEIGHT AT KEYBANC: KeyBanc analyst Weston Twigg downgraded Qorvo (QRVO) to Sector Weight from Overweight given further weakening Apple (AAPL) iPhone demand trends, weaker than expected China smartphone demand, and indications Qualcomm (QCOM) is finally gaining market share on RF360 amid transition to 5G in 2H19. While the analyst believes Qorvo remains well positioned for 5G longer term and sees modest downside risk with the stock trading near trough valuation, Twigg struggles to see positive catalysts given the disappointing iPhone cycle and weakening demand environment for China smartphones. Overall, his quarterly Asia supply chain findings and demand checks left him incrementally more cautious on the semiconductor space.
Twigg also downgraded Skyworks (SWKS) to Sector Weight from Overweight given further weakening Apple iPhone demand trends, weaker than expected China smartphone demand, indications Qualcomm is finally gaining market share on RF360 amid transition to 5G in 2H19, and modest share lost in China smartphones to Qorvo this year as a result of RF Fusion phase 6 and signs of supply constraints at Skyworks. While the analyst believes Skyworks remains well positioned for 5G longer term and sees modest downside risk with the stock trading near trough valuation, Twigg struggles to see positive catalysts given the disappointing iPhone cycle and weakening demand environment for China smartphones.
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