Check out today's top analyst calls from around Wall Street, compiled by The Fly.
INFLUENTIAL BEAR QUESTIONS GE'S 'COMMERCIAL SUCCESS': In a research note titled "Thoughts On 'Commercial Success,'" with quotes around commercial success, JPMorgan analyst Stephen Tusa keeps an Underweight rating on shares of General Electric (GE). In recent months, "despite general agreement on the need to limit the focus on headlines," market share and big order wins have crept back into the GE narrative, including what appears to be a significant engine order with Indigo, Tusa writes. While admitting orders are important for growth, the analyst points out that GE has "acknowledged chasing deal announcements despite unfavorable price," and has claimed to "no longer promote market share as the main goal." As a result, recent developments "raise questions around how much change has actually occurred," according to Tusa.
MELINTA CUT TO SELL-EQUIVALENT AT JPMORGAN: JPMorgan analyst Eric Joseph downgraded Melinta Therapeutics (MLNT) to Underweight from Neutral without a price target. The analyst says that while a market cap valuation of $20M-25M "begs the questions of whether shares have yet reached bottom," he believes the answer is "no." Melinta fundamentally remains a launch turnaround story, with market access being the chief priority over the next 6-12 months, Joseph tells investors in a research note. The analyst believes payer coverage and prescription trends reflect "minimal traction and lost ground to generics." As such, he sees Melinta shares continuing to be under pressure for the "foreseeable horizon."
BROADCOM TARGETS LOWERED ACROSS STREET AFTER GUIDANCE CUT: Mizuho analyst Vijay Rakesh lowered his price target for Broadcom (AVGO) to $330 from $335 while reiterating a Buy rating on the shares following last night's results. Barclays analyst Blayne Curtis also lowered his price target for Broadcom to $315 from $360 after the company reduced its full year guidance by 8% to reflect macro uncertainty and the Huawei impact. JPMorgan analyst Harlan Sur lowered his price target for Broadcom to $350 from $365, but he said the stock continues to be his top pick in semis and he would accumulate shares on weakness. BMO Capital analyst Ambrish Srivastava lowered his price target on Broadcom to $260 and kept his Market Perform rating after its Q2 results and a cut in its FY19 guidance, saying the company "did a u-turn" following a more bullish tone in the prior quarter. Several others also lowered their targets this morning after last night's quarterly report.
TRANSOCEAN CUT TO NEUTRAL AT CITI: Citi analyst Scott Gruber downgraded Transocean (RIG) to Neutral from Buy and cut his price target for the shares to $6.70 from $11. The analyst says his organic cash burn analysis implies the drillers will burn cash until "at least" 2021. His base case has floater utilization remaining below 70% by 2022, "well below the level needed to see significant pricing power."
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