Check out today's top analyst calls from around Wall Street, compiled by The Fly.
PIPER SAYS NVIDIA'S BIGGEST GROWTH DRIVERS ARE BACK: Piper Jaffray analyst Harsh Kumar believes Nvidia's (NVDA) two biggest growth drivers, namely gaming and data center, are back. Following a round of channel checks, the analyst said Nvidia is one of the best positioned semiconductor companies from a "company-specific catalyst perspective." Gaming, which represents around half of the company's revenue, appears to have settled following the GPU inventory correction, and the segment is setup for a seasonally strong second half of 2019, Kumar added. In addition, the analyst is convinced Nvidia's data center business appears to have stabilized, and he sees growth in the segment moving forward. Further, Kumar thinks the Mellanox (MLNX) acquisition is on track to close by the end of calendar 2019. Lastly, based on Piper's teen survey results, the analyst believes video game interest remains high among U.S. teens. He kept an Overweight rating on Nvidia with a $200 price target.
MACQUARIE BOOSTS ROKU TO OUTPERFORM: Macquarie analyst Tim Nollen upgraded Roku (ROKU) to Outperform from Neutral with a price target of $130, up from $110. The shift to connected television viewing that has been underway in the U.S. for the past few years will follow internationally in the coming years, Nollen said. Roku has built a leading position in the U.S., and its devices will find a "ready market abroad," contended the analyst. However, he believes the bigger growth opportunity may be the company's smart TV operating system integrations. Nollen thinks Roku can grow its user base by three times to over 70M active accounts by 2022, from 31M currently. 72M subscribers by 2022 could drive Platform revenue to $2.3B and overall revenue of $2.7B, nearly tripling from 2019 guidance, said the analyst.
GORDON HASKET UPS CHIPOTLE TO HOLD: Gordon Haskett analyst Jeff Farmer upgraded Chipotle Mexican Grill (CMG) to Hold from Underperform with a price target of $740, up from $620. The company's sales momentum makes the bear thesis on shares "increasingly untenable," Farmer told investors in a research note.
RAYMOND JAMES CUTS IROBOT TO UNDERPERFORM: Raymond James analyst Brian Gesuale downgraded iRobot (IRBT) to Underperform from Market Perform, telling investors in a research note that he thinks Street models aren't reflecting the beginning of a meaningful commoditization cycle across the RVC category. As growth rates and profits decelerate and its workhorse product, the Roomba, is finally feeling "fatigue" after 17 years of service.
BAIRD STARTS PELOTON AT OUTPERFORM: Baird analyst Jonathan Komp initiated Peloton (PTON) shares with an Outperform rating and $28 price target, telling investors in a research note that the company has "created a better fitness model providing premium content via a vertically integrated digital platform." Komp noted that key satisfaction and engagement measures are "very positive" and added that he sees a sizable potential market. However, the Baird analyst admitted that achieving GAAP profitability "may prove difficult" over the next five years due to investments, but contends that Peloton has substantial long-term sales and profit upside.
Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street