Additionally, RBC initiated Teladoc with an Outperform rating
Check out today's top analyst calls from around Wall Street, compiled by The Fly.
STIFEL BOOSTS UBER TO BUY: Stifel analyst Scott Devitt upgraded Uber Technologies (UBER) to Buy from Hold with an unchanged price target of $34. Uber's business fundamentals are "showing signs of sustainable improvement" while the current valuation "offers a more reasonable entry point," Devitt told investors in a research note titled "Turning the Corner." The analyst believes the ridesharing market has experienced "faster-than-expected competitive rationalization" and that Uber demonstrated an accelerated path to profitability. Further, better segment-level disclosure leaves him more constructive on the core Rides fundamentals, and he noted that Uber management has communicated a willingness to exit losing parts of the business. Devitt continues to believe Uber is "addressing significant transportation and food delivery market opportunities globally."
CITI BOOSTS INTERNATIONAL FLAVORS TO BUY: Citi analyst P.J. Juvekar upgraded International Flavors & Fragrances (IFF) to Buy from Neutral with a price target of $155, up from $137. Following a meeting with management, the analyst believes destocking in the Taste business with large consumer companies is coming to an end. Further, Frutarom's organic growth seems to have improved and the Russia investigation is behind International Flavor, Juvekar told investors in a research note. In addition, he believes working capital reduction should lead to faster debt pay down for the company.
WEDBUSH BOOSTS CHUY'S TO OUTPERFORM: Wedbush analyst Nick Setyan upgraded Chuy's (CHUY) to Outperform from Neutral with a price target of $32, up from $24.50, following the company's Q3 earnings report. In a research note to investors, Setyan said he believes drivers exist for same-store sales growth and margin outperformance relative current 2020 expectations. The analyst boosted his 2020 EPS estimate to $1.14 from $1.04 and his 2021 EPS estimate to $1.28 from $1.09.
GOLDMAN SACHS DOUBLE UPGRADES DUKE: Goldman Sachs analyst Michael Lapides double upgraded Duke Energy (DUK) to Buy from Sell with a price target of $93, up from $88. The shares lagged the sector index by 18% this year and most negative catalysts have already played out, Lapides told investors in a research note. Further, the analyst said Duke shares trade at a discount to peers, even on his below-consensus estimates. The "bad news" for the company is out and the valuation "appears more compelling here," contended Lapides.
Additionally, Mizuho analyst Anthony Crowdell initiated coverage of Duke Energy with a Neutral rating and $90 price target. The analyst noted that the stock trades at a significant price-to-earnings discount, but said it is warranted given the company's "significant" debt levels and future regulatory risk surrounding coal ash recovery. He believes Duke is correctly valued at these levels.
RBC CAPITAL STARTS TELADOC AT OUTPERFORM: RBC Capital analyst Sean Dodge initiated coverage of Teladoc (TDOC) with an Outperform rating and $100 price target. The company is "approaching its tipping point" as utilization should grow "significantly" over the coming years, Dodge told investors in a research note. He called Teladoc the market leader in virtual health with "durable" competitive advantages. The analyst estimates the U.S. total addressable market for general medical and behavioral health alone to be $8B per year, and said Teladoc is only ~5% penetrated.
PIPER SAYS ONE THIRD OF NETFLIX SUBS WANT DISNEY+: Disney's (DIS) streaming service has now been out for ten days and current Netflix (NFLX) subscribers appear to have a fairly strong interest in the service, Piper Jaffray analyst Michael Olson said. The analyst surveyed 1,700 domestic Netflix subscribers to gauge interest in Disney+ and found that 33% expect to subscribe to Disney+, up from 28% in September and 27% in April. Increasing awareness of the service is driving rising subscriber interest, said the analyst. However, Olson pointed out that despite rising interest in Disney+, he has seen a "consistent indication" that only a mid-single digit percentage of Netflix subscribers expect to cancel in favor of Disney+. Further, at any given time, there is a single digit percentage of Netflix subscribers that expect to cancel the service in the next few months, added the analyst. Olson still expects Netflix will continue to capture a significant portion of traditional content dollars as they migrate to streaming. He maintained an Overweight rating on Netflix with a $400 price target.
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