Check out today's top analyst calls from around Wall Street, compiled by The Fly.
GOLDMAN UPGRADES SKYWORKS TO BUY: Goldman Sachs analyst Toshiya Hari upgraded Skyworks (SWKS) to Buy from Neutral as he believes smartphone build plans are stabilizing and forming a bottom and he expects fundamentals in the mobile space to improve in late 2019 and into 2020 with the introduction of 5G phones. He sees the improving fundamental backdrop, coupled with early traction in BAW filters, to drive multiple expansion for Skyworks, Hari told investors. The analyst, who thinks the March quarter likely marks the bottom for Mobile, raised his price target on Skyworks to $96 from $73. In late morning trading following last night's earnings report from the company, Skyworks shares jumped nearly 13% to $85.72.
ARLO RATING CUT BY BOFA, COWEN AFTER Q4 MISS: BofA/Merrill analyst Nat Schindler downgraded Arlo Technologies (ARLO) to Underperform from Neutral with a $5 price target. Schindler said Q4 results were below estimates and guidance indicates serious challenges in 2019 due to market headwinds and excess inventory in the channel.
Meanwhile, Cowen analyst Jeffrey Osborne downgraded Arlo Technologies to Market Perform from Outperform. The analyst cited management's lowered guidance for Q1, which was significantly below expectations, and the challenging macro environment, which has led to lower demand levels and a higher channel inventory. Osborne lowered his price target to $7.50 from $25 on Arlo Technologies shares. Shares of Arlo Technology plummeted over 43% to $4.30 in late morning trading.
GUGGENHEIM CUTS PAYPAL TO NEUTRAL: Guggenheim downgraded PayPal (PYPL) to Neutral from Buy citing balanced risk/reward. Analyst Jeff Cantwell reduced PayPal estimates following the Q4 report and said positives are well understood and reflected in valuation. Cantwell expects near-term headwinds to payment volume growth from Brexit/cross-border, M-T headwinds from eBay (EBAY), and increasing competitive dynamics.
CANTOR CUTS VANDA TO NEUTRAL AFTER FDA COMPLAINT: Cantor Fitzgerald analyst Charles Duncan downgraded Vanda Pharmaceuticals (VNDA) to Neutral from Overweight and lowered his price target for the shares to $30 from $38. The company's complaint against the FDA reduces visibility on development timelines for tradipitant in gastroparesis, perhaps even pruritus, and may also affect Hetlioz label expansion efforts, Duncan told investors in a research note. The "challenged" FDA interactions are a result of management disagreement with the agency over the scientific merits of conducting certain nonclinical testing, said the analyst. In late morning trading, Vanda Pharmaceuticals shares dropped just over 18% to $20.53.
COWEN SEES DOMINO'S AS ACQUISITION CANDIDATE FOR RESTAURANT BRANDS: Cowen analyst Andrew Charles said he views Domino's Pizza (DPZ) as a preeminent candidate for Restaurant Brands (QSR) to acquire.The analyst noted Restaurant Brands is open to buying a fourth brand and Domino's, with its international franchisees, provides opportunities to accelerate the company's existing brands' global expansion. He also believes the company can benefit from Domino's digital and delivery best practices. Charles laid out purchase price scenarios in the $350 to $375 per share range for Domino's shares, and reiterated his Outperform rating and $71 price target on Restaurant Brands shares.
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