Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BAIRD CUTS TESLA TO NEUTRAL, SAYS TIME TO TAKE PROFITS: Baird analyst Ben Kallo downgraded Tesla (TSLA) to Neutral from Outperform despite raising his price target for the shares to $525 from $355. Tesla's risk/reward is more balanced following the recent stock appreciation, Kallo told investors in a research note titled "Downgrading from Plaid Mode." Expectations appear to be "fairly calibrated" with the positive estimate revision cycle is in its latter stages, contended the analyst. That said, Kallo would not short the stock and remains "positively biased over the long run." The analyst simply recommended taking profits at current share levels.
BERENBERG DOWNGRADES BOEING TO HOLD: Berenberg analyst Andrew Gollan downgraded Boeing (BA) to Hold from Buy with a price target of $350, down from $410. The grounding of the 737 Max has lasted "far longer" than expected, and Boeing's decision to halt production adds uncertainty regarding the plane's restoration timing and costs, Gollan told investors in a research note. Further, the 787-800 crash in Iran yesterday "adds further pressure on the stock," said the analyst. Gollan assumes the 737 Max returns to service by mid-Q2 with a further $4B in associated charges.
This is the second downgrade of the stock in as many days, as Cowen analyst Cai von Rumohr also downgraded Boeing to Market Perform from Outperform yesterday.
MIZUHO BOOSTS AMD TO BUY: Mizuho analyst Vijay Rakesh upgraded AMD (AMD) to Buy from Neutral with a price target of $55, up from $38. The 2020 server market could be stronger than current "muted" consensus expectations, Rakesh said. Further, many of the "aggressive" Intel (INTC) price cuts are in the rear-view mirror and channel checks indicate potential Intel delays in the 10nm Ice Lake single socket server market, added the analyst. As a result, Rakesh sees opportunity for AMD server share gains into the second half of 2020. While admitting he missed AMD's rally in Q4, the analyst sees more upside to consensus estimates "with some headwinds retreating."
BARCLAYS RAISES STARBUCKS TO OVERWEIGHT: Barclays analyst Jeffrey Bernstein upgraded Starbucks (SBUX) to Overweight from Equal Weight with a price target of $107, up from $90. The analyst expects a "fundamental reacceleration" into fiscal 2020 and views the shares as attractively valued at current levels. Starbucks offers an attractive combination of outsized global growth in both comparable sales and store units, Bernstein told investors in a research note. The analyst views the company's 2020 global comp sales growth target of 3%-4% given strength from its digital initiates and rewards.
JEFFERIES, COWEN UPGRADE SNAP: Jefferies analyst Brent Thill upgraded Snap (SNAP) to Buy from Hold with a price target of $21, up from $17. With AR lenses, the rebuilt Android app, and local language investments strengthening the ecosystem, he believes Snap can accelerate user growth, particularly from international markets, Thill said. He also said that its monetization is "too low" relative to peers and predicts ad revenue can double over three years, while he expects Snap to be non-GAAP profitable by FY20.
Cowen analyst John Blackledge upgraded Snap to Outperform from Market Perform citing a rebound in fundamentals, a positive survey from ad buyers, and branding trends. The analyst raised his estimates as buyers said the platform is emerging as a meaningful part of their Digital spending. Blackledge raised his price target to $20 from $16 on Snap shares.
COCA-COLA UPPED TO OUTPERFORM: Credit Suisse analyst Kaumil Gajrawala upgraded Coca-Cola (KO) to Outperform from Neutral with a price target of $64, up from $54. The Coca-Cola of today is considerably different compared to a few years ago, Gajrawala wrote in a research note partially titled "Kiss the Past Hello." A return to its "asset-light roots" should drive faster revenue growth and improved return on invested capital, contended the analyst. Gajrawala expects revenues to grow at the high-end of Coke's 4% to 6% algorithm "for several years," driving margin expansion, earnings and cash flow ahead of consensus. The benefits of the structural changes at Coke are reinforced by positive commentary from bottlers, retailers and other industry contacts in recent months, said the analyst.
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