Additionally, homebuilding stocks were downgraded at SunTrust and Raymond James
Check out today's top analyst calls from around Wall Street, compiled by The Fly.
HSBC CUTS NIKE TO HOLD ON VALUATION: HSBC analyst Erwan Rambourg downgraded Nike (NKE) to Hold from Buy with a price target of $112, up from $95. While he believes Nike, which he calls the "LVMH of sporting goods," continues putting pressure on competitors with its long-term investments, Rambourg sees a "somewhat stretched valuation" and Chinese profit risks limiting the stock's upside in the near-term.
TWO MORE ANALYSTS UPGRADE REGENERON, ONE DOWNGRADES IT: Canaccord analyst John Newman upgraded Regeneron (REGN) to Buy from Hold. The analyst noted its competition decreased when the ASRS warned about 14 cases of vasculitis in patients that received Novartis' (NVS) Beovu. The analyst noted the report should reduce the Eylea competitive concerns in the wet AMD space. Newman raised his price target to $550 from $409 on Regeneron shares.
Bernstein analyst Aaron Gal upgraded Regeneron to Outperform from Market Perform with a $500 price target. The analyst has been cautious around Regeneron, arguing that while near-term earning upside is there, the long-term outlook is limited by competitive pressures on Eylea and Dupixent. However, he believes the news of vasculitis cases with Novartis' Beovu changes the balance. His discussions with doctors suggest that they will narrow the new product's use and its outlook may be hampered for some time. Further, other new products may be slower to be adopted, at least initially, he added.
However, Baird analyst Brian Skorney downgraded Regeneron Pharmaceuticals to Neutral from Outperform with an unchanged price target of $410. The analyst appreciates the "tailwind granted by safety concerns" related to Eylea competitor Beovu, but he noted Regeneron shares are up 50% since his August 2019 upgrade. While the fall of Beovu certainly lowers near-term pressure on Eylea market share, this has now been accounted for in the share price, Skorney told investors. Skorney added that while Dupixent and Regeneron's pipeline "continue to look good," he prefers to take a "wait and see approach."
ARGUS BOOSTS DOMINO'S PIZZA TO BUY: Argus analyst John Staszak upgraded Domino's Pizza (DPZ) to Buy from Hold with a $420 price target. The analyst is positive on the company's stable comps and strong store-level cash flows, noting that the planned addition of 250 U.S. stores and 856 international locations should boost its revenue over the next 12 months. Staszak is also confident that Domino's Pizza can widen its technological lead over its competition.
CITI SEES PROGRESS IN GE ANNUAL FILING: A lack of incremental negatives in General Electric's (GE) annual filing is a sign of progress, Citi analyst Andrew Kaplowitz told investors in a research note. The filing indicates the company remains on the path to a sustainable turnaround, contended the analyst. He does not see signs of significant emerging "new issues" in GE's updated annual filing. This is significant in that it lends credit to the viability of GE's previously announced roadmap for improving results over the course of several years, without, to date, the distraction of incremental unknown challenges, Kaplowitz said. The analyst kept a Buy rating on General Electric with a $16 price target.
HOMEBUILDERS DOWNGRADED AT TWO FIRMS: SunTrust analyst Rohit Seth downgraded KB Home (KBH), Pulte Group (PHM), and D.R. Horton (DHI) to Hold from Buy. The analyst also lowered his price target on D.R. Horton to $58 from $60 while leaving the price targets on KB Home at $40 and PulteGroup at $45. Seth contended that his bullish thesis on the homebuilders has played out "better than anticipated" and now sees a more balanced risk-return profile for the next 6-9 months, adding that it is difficult to picture fundamentals improving further and forecasting new home sales trends to decelerate in the second half of FY20 against tough prior-year comparisons.
Meanwhile, Raymond James analyst Buck Horne downgraded Toll Brothers (TOL) to Market Perform from Outperform following the company's Q1 results that not only missed key expectations on several fronts, but also included guidance for the remainder of FY20 that raises serious questions about internal cost controls and management's financial visibility. Home deliveries, adjusted gross margin, and SG&A costs all missed guidance by considerable levels, Horne told investors.
Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street