Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BOFA UPGRADES DELPHI, ADIENT: BofA Merrill Lynch upgraded Delphi Technologies (DLPH) to Buy from Neutral and increased its price target to $30 from $25, saying much of the bad news is priced in. Analyst John Murphy said new CEO Rick Dauch's business review will come to a close in mid-April and expects more formal and constructive updates around Delphi's transformation plan. The analyst believes improving management credibility and constructive updates, combined with an inflection in earnings, will lead to multiple expansion.
Murphy also upgraded Adient (ADNT) to Buy from Neutral and raised its price target to $25 from $19. Murphy believes Adient is in the process of refinancing its debt, despite investor concerns of a potential liquidity crunch, which would allow it to execute on its turnaround. Murphy expects new CEO DelGrosso to provide updates around its transformation plan over the next few months and expects shares to recover over time.
BARCLAYS DOUBLE DOWNGRADES LOGMEIN: Barclays analyst Raimo Lenschow double downgraded LogMeln (LOGM) to Underweight from Overweight and cut his price target for the shares to $74 from $104.The core LogMeln offering around the Gravity platform is at the end of its growth trajectory, as the impact of pricing is weakening, Lenschow told investors in a research note titled "Log Me Out." At the same time, LogMeIn's current collaboration offering faces increased competition and has a dated product set, says the analyst. Lenschow believes the only "viable choice" for LogMeln is to "double down" on the next market - Unified Communication as a Service. However, this transition "would not be without hurdles" given increased competition and the need to invest in sales capacity, he noted. As a result, the analyst expects LogMeln shares will likely be relative underperformers. In late morning trading, shares of LogMeIn were lowere by over 7% to $77.45.
GOLDMAN BOOSTS EXACT SCIENCES TO CONVICTION BUY: Goldman Sachs analyst Patrick Donnelly added Exact Sciences (EXAS) to the firm's Americas Conviction List, citing his view that the stock is set-up well for the remainder of 2019. Cologuard is a unique growth story, competing liquid biopsy products are likely years away from commercial launches and optionality from pipeline products is currently underappreciated, Donnelly told investors. He kept a $120 price target on Exact Sciences shares.
VERTICAL GROUP STARTS TILRAY AT SELL: Vertical Group analyst Gordon Johnson initiated Tilray (TRLY) with a Sell rating and $8 year-end price target, stating that he sees a "best case" being 80% downside as "reality sets in for 'weed' investors" during this year. Despite the bearish initiation, shares of Tilray were higher by over 1% to $54.10 in late morning trading.
GOLDMAN CUTS CALIFORNIA RESOURCES, CHESAPEAKE TO SELL: Within the Exploration and Production space, Goldman Sachs analyst Brian Singer recommended selling stocks where the valuation post recent rallies "appears at odds" with the company's competitive positioning. With that in mind, Singer downgraded both California Resources (CRC) and Chesapeake Energy (CHK) to Sell from Neutral. California Resources has a low decline rate and competitive supply cost but unfavorable debt cost that does not warrant the extent of its current valuation premium, said the analyst. For Chesapeake, Singer sees less favorable supply cost and corporate returns.
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