Additionally, Citi upgraded PG&E to Buy from Neutral
Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BERNSTEIN CUTS BEYOND MEAT TO MARKET PERFORM: Bernstein analyst Alexia Howard downgraded Beyond Meat (BYND) to Market Perform from Outperform with an unchanged price target of $106. The stock has rallied 55% thus far in 2020, fueled by recent news including McDonalds (MCD) expanding its test of Beyond's P.L.T. burger in Canada, Howard noted. The analyst cited valuation for the downgrade as she believes Beyond Meat's risk/reward has become less attractive following the recent rally. The company's near-term sales growth potential in the U.S. is largely priced in at this point, said Howard. That said, there could be share upside if Beyond Meat expands internationally down the road, added the analyst.
BARCLAYS DOUBLE DOWNGRADES FIRST SOLAR: Barclays analyst Moses Sutton double downgraded First Solar (FSLR) to Underweight from Overweight with a price target of $49, down from $66. After assessing industry data on 5,000 projects, both operational and in the company's pipeline, the analyst believes First Solar's Systems business "is in trouble." This is not a bear call on U.S. Solar, and First Solar's module business is not at risk, Sutton noted. However, its Systems business has lost 80% of its U.S. market share, with NextEra Energy (NEE), EDF and Invenergy gaining share, said the analyst. Sutton expects First Solar's "rapidly declining share" of the U.S. downstream project market to cause a downward re-rating of the shares.
CITI BOOSTS PG&E TO BUY: Citi analyst Praful Mehta upgraded PG&E (PCG) to Buy from Neutral with a price target of $15, up from $11. The company's potential agreement with bondholders is a "big step forward," Mehta told investors in a research note. The "constructive negotiations" referenced in the bankruptcy court yesterday suggest a deal with bondholders is imminent, said the analyst. Mehta believes that of even if the shareholders give a concession to bondholders, the strategic value of the deal is "significant." Further, a deal would limit the power of the California governor, he added.
PIPER LOWERS WELLS FARGO TO NEUTRAL: Piper Sandler analyst Scott Siefers downgraded Wells Fargo (WFC) to Neutral from Overweight with a price target of $52, down from $60. Tuesday's earnings miss and, more importantly, a lack of visibility on improvement in costs, puts "heavy downward pressure" on earnings estimates, Siefers told investors in a research note. The analyst said that given his reduced earnings outlook and the uncertain path to improved profitability, he has "trouble substantiating" a favorable outlook and arguing for a higher valuation multiple.
CANACCORD RAISES APPLE TARGET TO $355: Canaccord analyst T. Michael Walkley raised his price target on Apple (AAPL) to $355 from $275 . The analyst expects the 5G ramp up to boost iPhone sales in 2021 and he raised his estimates on other products, including wearables where Apple holds a 35% market share. Walkley reiterated his Buy rating on Apple shares.
WEDBUSH STARTS PELOTON WITH AN OUTPERFORM: Wedbush analyst James Hardiman initiated coverage of Peloton (PTON) with an Outperform rating and $37 price target. Hardiman said he does not believe that Peloton will prove to be a fad, based on his firm's analysis of the business model, expansive survey work of both Peloton users and prospective customers and his own experience with the product, instead saying he thinks Peloton will be one of a small number of fitness companies likely to be an enduring force going forward. He said Peloton has a first-mover advantage in an emerging and compelling subset of the fitness market, providing consumers what they want, where and when they want it. Underpinning his bullish view is his belief that Peloton's subscription business can reach ~4M subcribers, with ~3M coming from the U.S.
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