Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BARCLAYS CUTS BOEING TO EQUAL WEIGHT: Barclays analyst David Strauss downgraded Boeing (BA) to Equal Weight from Overweight and lowered his price target for the shares to $367 from $417. The analyst expects the recovery of 737 Max production to take longer than expected and his 2019-2020 earnings and free cash flow estimates are well below consensus as a result. Further, a survey indicates a large portion of fliers are likely to avoid 737 MAX for an extended period beyond when the grounding is lifted, Strauss told investors in a research note. Social media and fliers' ability to know the aircraft type in advance of booking brings greater risk to 737 Max relative to prior incidents, said the analyst.
MIZUHO BOOSTS CTRIP TO BUY: Mizuho analyst James Lee upgraded Ctrip (CTRP) to Buy from Neutral and raised his price target for the shares to $55 from $35 ahead of the company's Q1 results. The analyst expects decreased competition along with an improved macro environment and yuan appreciation will drive both domestic and outbound travel. As such, he raised his three-year annual EBITDA growth estimate for Ctrip to 35% from 23% on improved long-term fundamentals. Alibaba (BABA) remains Lee's top pick in the China Internet space.
OPPENHEIMER BOOSTS GW PHARMA TO OUTPERFORM: Oppenheimer analyst Esther Rajavelu upgraded GW Pharmaceuticals (GWPH) to Outperform from Perform and raised her price target for the shares to $234 from $162. GW just reported "strong" Epidiolex uptake and more importantly, shared positive topline results from a Phase 3 study of Epidiolex in patients with seizures associated with tuberous sclerosis complex, Rajavelu told investors in a research note. As a result, the analyst updated her probability of approval in tuberous sclerosis complex to 87% from 41%. The analyst also likes GW's efforts to broaden the pipeline with open-label studies of CBDV for autism spectrum disorder and Rett syndrome.
UBS CUTS GARDNER DENVER TO NEUTRAL: UBS analyst Damian Karas downgraded Gardner Denver (GDI) to Neutral from Buy while raising his price target for the shares to $38 from $31. The shares are due for a "breather" following the recent run as benefits from the Ingersoll-Rand (IR) deal are now largely priced in, Karas told investors in a research note.
JUMIA INITIATED AROUND THE STREET: Jumia Technologies (JMIA) was initiated with a Hold at Stifel, a Hold at Berenberg, a Market Perform at Raymond James, a Market Perform at William Blair, and an Underweight at Morgan Stanley.
Stifel analyst Scott Devitt started Jumia Technologies with a Hold rating and $40 price target, saying he is awaiting a more attractive entry point given Jumia's "relatively high" valuation compared to comparable marketplace platforms and "long path" to profitability.
Morgan Stanley analyst Brian Nowak started Jumia Technologies with an Underweight rating and $27 price target, stating that he acknowledges Jumia opportunity with its 4M active buyer base representing only about 1% penetration of Africa's addressable smartphone user base. However, he believes the company's low buyer retention rates mean the company needs large investment and strong execution to grow, noting that he estimates only 50% of current active buyers return over the next 12 months. Nowak also contended that the stock's current valuation understates the risks and uncertainties facing Jumia.
STEPHENS INITIATES ROKU WITH OVERWEIGHT RATING: Stephens analyst Kyle Evans started Roku (ROKU) with an Overweight rating and $84 price target. The stock is likely to remain volatile, but weakness should be used as buying opportunities, Evans tells investors in a research note. He likes Roku's long-term industry position as an "independent, branded, embedded and capital-light player" at the nexus between smart TVs and an "increasingly fragmented" streaming video landscape. Evans views the company as well positioned to grow users, engagement and average revenue per user.
Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street