Check out today's top analyst calls from around Wall Street, compiled by The Fly.
GOLDMAN PUTS CHEVRON ON CONVICTION LIST: Goldman Sachs analyst Neil Mehta reinstated a rating on Chevron (CVX) at Buy and added the stock to the firm's Americas Conviction List, stating that Chevron's cash flow profile has positively inflected with the production contribution and capital spending roll-off from the startup of both the Gorgon and Wheatstone LNG projects. Chevron is demonstrating capital discipline, as demonstrated by its decision not to make a counterproposal to Occidental Petroleum's (OXY) offer for Anadarko (APC), and it has a lower capital spending growth rate and a higher production growth rate through 2023 than its closest peer, Exxon (XOM), said Mehta. The analyst has a $144 price target on Chevron shares.
GUGGENHEIM BOOSTS ZILLOW TO BUY: Guggenheim analyst Jake Fuller upgraded Zillow (ZG) to Buy from Neutral, stating that its recent results prove that demand for Offers "is real" and he expects the company's Offers business to surpass its ad business by Q4 and generate greater than $1B of revenue in its first full year. Offers has already shown it can be profitable on a unit basis and the addition of Loans and seller leads could "substantially" increase the homes platform's profit potential, argued Fuller, who set a $45 price target on Zillow shares.
SUSQUEHANNA UPS APPLIED MATERIALS, ADVANCED ENERGY TO POSITIVE: Susquehanna analyst Mehdi Hosseini upgraded Advanced Energy (AEIS) to Positive from Neutral, stating that he believes the company is poised to benefit from market share gains made by its largest customer, Applied Materials (AMAT). As Hosseini told investors in his separate upgrade of Applied Materials to Positive from Neutral, his recent checks suggest that the company has won "major" memory design wins that should help it regain lost share. He thinks Applied gaining memory share is "particularly positive" for Advanced's semi system business unit, the analyst stated. Hosseini raised his price target on Applied shares to $60 from $34, and on Advanced Energy shares to $82 from $45.
JPMORGAN SAYS GE MANAGING POWER HEADLINES, NOT FUNDAMENTALS: General Electric's (GE) headline of 4.5 GWs in gas turbine orders promoted by management on the company's Q1 conference call in April was reaffirmed with the McCoy data on a headline basis, JPMorgan analyst Stephen Tusa tells investors in a research note. However, a closer look shows externally sold utility grade HDGT orders of ~1 GW, well below both Siemens and MHI and "far from a signal of a change in trend or upside versus our thesis," Tusa adds. The analyst still believes GE is losing market share in a "stable" HDGT market, especially in advanced class. The analyst believes the reporting is evidence of a "company that appears to manage to headlines rather than on-the-ground fundamentals." Tusa kept an Underweight rating on shares of General Electric.
EVERCORE CUTS TESLA PRICE TARGET TO $200: Evercore ISI analyst Arndt Ellinghorst cut his delivery estimates across all Tesla (TSLA) models and he now estimates 343,000 total deliveries for 2019, which he noted is down from his prior estimate of 368,000, below the consensus forecast of 364,000 and below the company's guidance range of 360K-400K. Tesla will have to prove it can dramatically scale production across multiple models to "reach their lofty aspirations," said Ellinghorst, who added that he sees Model 3 volumes potentially peaking in 2020. Tesla "needs and burns cash like a car company," but still trades at a huge valuation premium, even though both its "supernatural growth" and best in class execution are in question, said Ellinghorst, who lowered his price target on the stock to $200 and kept an Underperform rating on Tesla shares.
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