Check out today's top analyst calls from around Wall Street, compiled by The Fly.
MICRON BOOSTED TO BUY AT LONGBOW: Longbow analyst Nikolay Todorov upgraded Micron Technology (MU) to Buy from Neutral with a $66 price target. The analyst's channel checks indicated upside in shipments and improving DRAM and NAND pricing fundamentals. Upstream inventory drawdown is occurring faster than previously forecast, which should drive a bottoming in DRAM fundamentals by yearend, Todorov told investors in a research note. Further, the analyst believes NAND fundamentals are in the process of recovering. As a result, he sees upside to Micron's fiscal 2020 sales and earnings consensus and downside to capital expenditure expectations. Todorov also raised his price target for Buy-rated Western Digital (WDC) shares to $76 from $70.
ALCOA RAISED TO OUTPERFORM AT CREDIT SUISSE: Credit Suisse analyst Curt Woodworth upgraded Alcoa (AA) to Outperform from Neutral and raised his price target for the shares to $27 from $26. The analyst expects alumina prices to recover on "significant" capacity cuts in China, an end to inventory destocking, and the Alpart shutdown. Further, Alcoa's restructuring efforts should also drive "material tailwinds" to its mid-cycle free cash flow starting early 2020, Woodworth told investors in a research note. He believes Alcoa shares appear "significantly undervalued on most metrics."
CALLAWAY GOLD UPGRADED TO OUTPERFORM: Raymond James analyst Joseph Altobello upgraded Callaway Golf (ELY) to Outperform from Market Perform with a $21 price target to reflect the firm's sum-of-the-parts base case valuation on Callaway's golf club, ball, apparel and gear business, the Jack Wolfskin business and Callaway's TopGolf investment. Altobello said he believes the stock is not fully reflecting the company's 14% stake in TopGolf, which it appears to be increasingly open to monetizing and is being overly penalized for the recent acquisition of Jack Wolfskin, which is obscuring the health of the balance of its portfolio.
DAVE & BUSTER'S CUT AFTER EARNINGS: Loop Capital analyst Lynne Collier downgraded Dave & Buster's (PLAY) to Hold from Buy and cut her price target to $40 from $55 after its "mixed" Q2 results, with a slight earnings beat and below-consensus comps. The analyst noted that the company's blended comps in July and August also continued to decelerate as performance fully lapped the benefits of the initial rollout of VR games. Collier added that while she anticipated a soft earnings result, she "underestimated the deceleration in comps on the amusement side of the business" over the recent weeks.
Additionally, William Blair analyst Sharon Zackfia downgraded Dave & Buster's to Market Perform from Outperform, citing the "continued weakening" in the company's comp trends, while Raymond James analyst Brian Vaccaro also downgraded Dave & Buster's to Market Perform from Outperform.
COSTCO CUT TO PERFORM AT OPPENHEIMER: Oppenheimer analyst Rupesh Parikh downgraded Costco Wholesale (COST) to Perform from Outperform with a price target of $300, up from $295. The analyst said he sees more limited potential upside from current valuation levels.
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