Check out today's top analyst calls from around Wall Street, compiled by The Fly.
PINTEREST INITIATED AROUND THE STREET: Pinterest (PINS) was initiated with an Outperform rating at Baird, a Buy rating at Citi, a Sector Perform rating at RBC Capital, a Hold rating at Deutsche Bank, a Neutral rating at Credit Suisse, UBS, BofA/Merrill, Goldman Sachs, and JPMorgan, and an Equal Weight rating at Barclays.
Baird analyst Colin Sebastian initiated Pinterest with an Outperform rating and $36 price target, stating that he expects the company to top $1B in revenue this year given its engaged and fast-growing audience and developing ad business. He sees Pinterest having significant runway for growth from international monetization and contributions from shopping/ecommerce as well as operating leverage.
Deutsche Bank analyst Lloyd Walmsley, meanwhile, started Pinterest with a Hold rating and $25 price target. The analyst is bullish on the company's long-term prospects but views the current risk/reward as balanced. The shares are trading at a full multiple with limited near term valuation support on profit metrics, Walmsley tells investors in a research note titled "Upside to Shares is Blurry Through Our Lens."
ZOOM VIDEO INITIATED AROUND THE STREET: Zoom Video (ZM) was initiated with an Overweight rating at JPMorgan and Piper Jaffray, a Buy rating at BofA/Merrill, a Market Perform rating at Wells Fargo and JMP Securities, a Sector Perform rating at RBC Capital, a Sector Weight rating at KeyBanc, an Equal Weight rating at Morgan Stanley, a Hold rating at Stifel, and a Neutral rating at Credit Suisse and Goldman Sachs.
JPMorgan analyst Sterling Auty started Zoom Video with an Overweight rating and $113 price target while adding the shares to his firm's Analyst Focus List. Zoom is a technology that will help fundamentally change the way that business is conducted going forward, Auty tells investors in a research note. He believes the potential for much greater penetration in a bigger portion of businesses for its core video collaboration technology and add-on phone solution provides a "foundation for growth and profitability at a scale not seen in software before."
Morgan Stanley analyst Meta Marshall, however, started Zoom Video with an Equal Weight rating and $75 price target, citing her view that success becoming a central unified communications platform has already been built into its current valuation. While she thinks Zoom can continue to gain market share and is positioned for meaningful beats over the next couple of years, Marshall thinks the current premium valuation is "about appropriate."
BAIRD CUTS DEERE, TITAN TO NEUTRAL: Baird analyst Mig Dobre downgraded Deere (DE) and Titan Machinery (TITN), both to Neutral from Outperform, telling investors that large Ag equipment demand is increasingly at risk as farmer sentiment and grain prices deteriorate amid the drawn out trade war. While Ag inventories at dealers has risen, posing an additional risk, construction equipment growth is moderating, noted Dobre, who lowered his price target on Deere to $150 from $166 and cut his price target on Titan shares to $18 from $26.
GUGGENHEIM CUTS SHOPIFY TO NEUTRAL: Guggenheim analyst Ken Wong downgraded Shopify (SHOP) to Neutral from Buy as he sees upside potential as limited given the stock's current valuation, which he notes has now passed previous peak levels. While he still sees Shopify as a disruptive force within retail, Wong believes bullish investors are already factoring in revenue beats in FY19 and FY20 that are consistent with the company's historical outperform to consensus, he told investors.
MORGAN STANLEY CUTS ADT TO EQUAL WEIGHT: Morgan Stanley analyst Toni Kaplan downgraded ADT Inc. (ADT) to Equal Weight from Overweight as she has less confidence in the company's growth outlook following a recent AlphaWise survey conducted by the firm. The survey showed homeowners seem as inclined to buy DIY systems as ADT systems, that more ADT customers switched to DIY providers than she would have expected and that measure of brand preference for Amazon's (AMZN) Ring and Google's (GOOG) Nest were higher than for ADT, Kaplan explained. Given that the survey leads her to fear ADT may find it difficult to defend its market share, Kaplan lowered her price target on the stock to $7 from $9.
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