Check out today's top analyst calls from around Wall Street, compiled by The Fly.
COWEN SEES CHIPOTLE OUTPERFORMING: Cowen analyst Andrew Charles upgraded Chipotle (CMG) to Outperform from Market Perform with a price target of $970, up from $800. The analyst sees upside to expectations for the company's comps and earnings from the growth of its digital sales, growing consumer trends calling for food transparency, higher advertising budget, and the success of its loyalty program. Charles adds that the Chipotle brand should grow even faster with the launch of the drive-thru option starting in 2021.
BMO MOVES TO SIDELINE ON MOLSON COORS: BMO Capital analyst Amit Sharma downgraded Molson Coors Brewing (TAP) to Market Perform from Outperform with a price target of $55, down from $62. Molson's "persistently low" valuation and high free cash flow yield have failed to entice investors as its "structurally compromised" sales growth has been "too high a hurdle," even for deep-value investors, Sharma tells investors. Further, management's revitalization plan to lift sales growth does not go far enough to structurally lift the company's outlook and it may delay potentially shareholder-friendly strategic actions, added the analyst.
TESLA CUT TO HOLD AT CHINA RENAISSANCE: China Renaissance analyst Carson Ng downgraded Tesla (TSLA) to Hold from Buy with an unchanged price target of $346. The analyst cites valuation for the downgrade with the shares up 49% since September. Further, he expects the special design of the new Cybertruck to draw "polarized responses" from both consumers and investors. While "strong preorders" of Cybertruck show Tesla's potential to expand its product portfolio, the recent share price appreciation has at least partly factored in the positives associated with upcoming Model Y launches and Shanghai production, Ng tells investors.
DECKERS GETS SECOND UPGRADE IN TWO DAYS: This morning, Baird analyst Jonathan Komp upgraded Deckers Brands (DECK) to Outperform from Neutral. The analyst cited its solid earnings, strong execution, and brand enhancements which supports its favorable risk/reward. He thinks the current sentiment is fairly positive but is does not appear to be giving full credit for its runway ahead for both UGGS and HOKA. Komp raised his price target to $205 from $180 on Decker's shares.
As previously reported yesterday, Wells Fargo analyst Tom Nikic had upgraded Deckers Brands to Outperform from Market Perform with a price target of $195, up from $177.
JPMORGAN CUTS PAGSEGURO RATING, LOWERS TARGET TO $39: JPMorgan analyst Domingos Falavina downgraded PagSeguro Digital (PAGS) to Neutral from Overweight with a price target of $39, down from $60. The company's new lease accounting and "soft" guidance imply cash flows that are 30% lower than previously forecast, Falavina tells investors. The analyst now sees "limited" upside of about 15% from current price levels.
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