Check out today's top analyst calls from around Wall Street, compiled by The Fly.
TEVA BOOSTED TO BUY AT ARGUS: Argus analyst Jason McCarthy upgraded Teva (TEVA) to Buy from Hold with a price target of $12, saying the company has been making progress in resolving its "numerous challenges" of the past several years. The analyst believes that the company's reliance on Copaxone has declined and its cost base has also decreased "significantly", adding that the generics industry overall is also stabilizing. McCarthy further noted that while Teva could be faced with "several more challenging quarters," he sees its current forward earnings multiple of 3.9x as an "excessive discount" valuation relative to the peer average of 6.7x and its historical average of 8.6x.
SENSEONICS CUT TO MARKET PERFORM AT RAYMOND JAMES: Raymond James analyst Jayson Bedford downgraded Senseonics (SENS) to Market Perform from Outperform. The analyst said the company's "persistent headwinds" leave him "less patient" with respect to the shares. In late morning trading, Senseonics shares are down about 6% to $1.79.
UBS SAYS WORRIES OVER SALESFORCE ACQUISITION OF TABLEAU OVERBLOWN: Salesforce (CRM) shares have underperformed since the announcement of its Tableau Software (DATA) acquisition as investors worry that the deal could be designed to prop up lagging growth, UBS analyst Jennifer Lowe told investors in a research note. The analyst, however, thinks the concerns are overblown. Channel work shows "robust demand" for Salesforce's solutions, and recent merger disclosures show a "thoughtful and lengthy process" behind the deal, says Love. The analyst kept a Buy rating on Salesforce shares with a $190 price target.
LOOP SAYS CORTEVA MAY BE ON HOOK FOR LEGACY DUPONT LIABILITIES: Loop Capital analyst Chris Kapsch lowered his price target on Corteva (CTVA) to $30 from $31 and kept his Hold rating, saying the complaint brought this week in the courts by Chemours (CC) against DuPont (DD) suggests there is still "dust to settle" regarding legacy DuPont environmental and personal injury liabilities, for which Corteva may be partially responsible. The analyst notes that the prospective liability is "impossible to precisely quantify", but he estimates that it could be somewhere between the $790M amount previously referenced in Corteva's recent 10-Q filing and a maximum of about $1.2B.
MORGAN STANLEY SAYS BROADCOM DEAL TALKS LIKELY TO RAISE QUESTIONS: After Bloomberg and the Financial Times reported that Broadcom (AVGO) is in advanced talks to buy Symantec (SYMC), Morgan Stanley analyst Craig Hettenbach said he thinks such a potential deal would be less surprising than the company's prior acquisition of CA, but there will likely be many questions about it given the deterioration in Symantec's business. He estimates such a potential deal could be approximately 10% accretive at a typical M&A premium and with a 10% reduction in operating expenses. Given that he thinks questions about Broadcom's strategy could linger, Hettenbach kept an Equal Weight rating on the shares.
KEEFE BRUYETTE UNDERWEIGHT ON GOOSEHEAD INTO EARNINGS: Keefe Bruyette analyst Christopher Campbell recommended an Underweight position on Goosehead Insurance (GSHD) shares heading into the company's Q2 earnings report given the stock's 90% rally year-to-date. The shares are likely to underperform on in-line results, and expectations of "persistent" insider sales should drive post-earnings price pressure, Campbell noted. The analyst also reduced his 2019 revenue estimate for Goosehead to $85M from $88.1M, reflecting the company's inclusion of the Q1 contingent commission outperformance in its original 2019 revenue guidance. He kept a Market Perform rating on the shares with a $34 12-month price target.
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