Check out today's top analyst calls from around Wall Street, compiled by The Fly.
RBC CAPITAL BOOSTS CHEWY TO OUTPERFORM: RBC Capital analyst Mark Mahaney upgraded Chewy (CHWY) to Outperform from Sector Perform with an unchanged $38 price target. The analyst sees FY20 as a profitability inflection year for the company and believes that the stock offers "highly favorable" risk-reward given its "strong sustainable fundamentals", including 25% annual revenue growth and "materially" expanding margins.
SUNTRUST CUTS SHAKE SHACK TO HOLD: SunTrust analyst Jake Bartlett downgraded Shake Shack (SHAK) to Hold from Buy with a price target of $79, down from $82. The analyst believes that the company is "one of the strongest growth and brands" in the restaurant space, but he is concerned about its prospects over the near to medium term, with "unusually low" visibility on its same-store-sales amid the transition to a single-delivery partner. Following a 29% year-to-date run in, Bartlett believes that Shake Shack risk-reward is more balanced.
STIFEL DOWNGRADES DOMINO'S TO HOLD: Stifel analyst Chris O'Cull downgraded Domino's Pizza (DPZ) to Hold from Buy with a price target of $365, up from $325. The analyst cites the "surge in valuation" following Domino's "strong" Q4 sales and earnings report for the downgrade. O'Cull remained "highly confident" in the near- and long-term growth outlook for the company, but he believes expectations embedded in the current price create a less compelling risk/reward setup. He said he would consider becoming more constructive on pullbacks to the low-to-mid-$300 share range.
DA DAVIDSON RAISES WW TO BUY: DA Davidson analyst Linda Bolton Weiser upgraded WW (WW) to Buy from Neutral with a price target of $56, up from $33. The analyst said her proprietary data suggests that this is a good time to buy shares, saying consensus calling for 5% sales growth in 2020 appears to be modest with her estimated subscriber growth potential of at least 10%. Weiser added that while the positive "chatter" regarding app download trends has increased, the stock's expected forward earnings multiple of "only" 17-times is "far below" its 3-year average midpoint of 25-times.
RAYMOND JAMES UPGRADES REALREAL TO OUTPERFORM: Raymond James analyst Aaron Kessler upgraded RealReal (REAL) to Outperform from Market Perform with a $21 price target. The analyst expects continued positive near-term fundamental trends, including strong gross merchandise volume growth and margin improvement. As such, he believes Street estimates for RealReal are likely conservative. Kessler remained positive on the resale market increasingly shifting online with RealReal as the leader in the luxury segment. In addition, the stock's valuation has become attractive, Kessler told investors in a research note.
JEFFERIES CUTS HEXO TO UNDERPERFORM: Jefferies analyst Owen Bennett downgraded Hexo (HEXO) to Underperform from Hold with a price target of C$1.00, down from C$1.90. He contended that Canadian cannabis consensus sales estimates remain too high and his "Cannabis 2.0" analysis finds that economics suggest the gross margin benefit from new products "may be nonexistent early on," Bennett told investors. Aphria (APHA) appears best placed to continue to take share, while new data and a proprietary brand positioning matrix support his concern on Hexo's and Canopy's (CGC) portfolios in particular, Bennett added. He increasingly expects to see "a strong divergence between those that can deliver financially near term and those that can't," the analyst noted.
APHA
+
Canopy Growth
-0.255 (-1.14%)
Hexo
+0.005 (+0.35%)
RealReal
+0.16 (+1.03%)
WW
+0.75 (+1.98%)
Domino's Pizza
-9.06 (-2.42%)
Shake Shack
-4.05 (-5.28%)
Chewy
+1.26 (+4.30%)