Take-Two downgrade at Bank of America also among notable calls
Check out today's top analyst calls from around Wall Street, compiled by The Fly.
IMPROVING REAL ESTATE MARKET: Susquehanna analyst Shyam Patil upgraded Zillow (Z) to Neutral from Negative with a price target of $70, up from $39. The analyst's checks indicate that the improving real estate market continues to benefit Zillow's Premier Agent business, while also pointing to strong leads and excitement around Flex pricing. With the pandemic still having a significant influence on buying behavior, Patil doesn't see the market slowing down meaningfully "anytime soon."
HEADWINDS LARGELY PLAYED OUT: UBS analyst Munjal Shah upgraded Seagate Technology (STX) to Neutral from Sell with a price target of $46, up from $41. The analyst believes the negative catalysts have largely played out with the stock underperforming the S&P 500 Index by roughly 27% year-to-date. Consensus estimates now reflect fiscal 2021 headwinds from the mix shift toward nearline hard disk drives, Shah told investors in a research note. Further, the analyst believes Seagate's focus on cost metrics should help generate sufficient cash flows to support a capital return program.
SELL TAKE-TWO: Bank of America analyst Ryan Gee downgraded Take-Two (TTWO) to Underperform from Neutral with a $166 price target. The upside in the first quarter may already be priced into the shares, Gee told investors in a research note. While there were few negatives on the earnings call, Gee thinks the 10% recurrent consumer spending growth guidance for fiscal second quarter is a sign of recent slowing and the sharp ramp up spending.
'SOLID' Q1 BEAT: Deutsche Bank analyst George Hill upgraded McKesson (MCK) to Buy from Hold with a price target of $202, up from $169. The analyst noted that the company delivered a "solid" fiscal first quarter beat, driven by "strong" results in the Medical segment, as demand for personal protective equipment and improving customer mix in response to the COVID crisis increased sharply. The financial impact of the pandemic may not be as bad as McKesson initially feared, Hill contended.
BUY NKARTA: Mizuho analyst Salim Syed initiated coverage of Nkarta (NKTX) with a Buy rating and $34 price target. The analyst believes natural killer cell biology is "naturally much more elegant than T cell biology." NK cells express a wide variety of inhibitory receptors that identify healthy normal cells, and activating receptors that recognize diseased cells, Syed told investors in a research note. The analyst pointed out that Nkarta is developing allogeneic engineered NK cell-based therapies to treat cancer.
Stifel analyst Stephen Willey also started coverage of Nkarta with a Buy rating and $41 price target. The company's natural killer, or NK, cell engineering platform overcomes the historical challenges associated with ex-vivo NK cell manipulation, said Willey, who sees harnessing NK cells as "the next significant chapter in the generation of engineered cell-based therapies to treat cancer." However, he acknowledged longer-term data will ultimately be needed to discern any meaningful differences in competing platform technologies.
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