Check out today's top analyst calls from around Wall Street, compiled by The Fly. GAP UPGRADED TO BUY ON 'BIG UPSIDE' POTENTIAL: Citi analyst Paul Lejuez upgraded Gap (GPS) to Buy from Neutral with a doubled price target of $24, up from $12. The company's ending of the planned Old Navy spinoff could imply its board is willing to take on corporate actions to unlock shareholder value, Lejuez tells investors in a research note. Given the "favorable positioning" of athletic/casual retailers in a post-Covid world, Gap's Athleta brand "stands out as having value that may not be getting recognized by the market," says the analyst. At the midpoint of his valuation estimates, Lejuez estimates Athleta is worth $3.6BN on a standalone basis or in a sale. With Gap's current enterprise value at just $6.5B, a sum-of-the-parts analysis implies "big upside," says the analyst. STARBUCKS UPGRADED AMID ADAPTATION TO NEW ENVIRONMENT: Stifel analyst Chris O'Cull upgraded Starbucks (SBUX) to Buy from Hold with a price target of $90, up from $78. While Starbucks continues to be one of the more disrupted restaurant businesses, and O'Cull acknowledges his call "may prove early," he believes sales trends should benefit in FY21 from "aggressive" steps the company is taking to improve convenience, the analyst tells investors. He has been impressed with the company's willingness and ability to adapt quickly to the changing environment under the leadership of CEO Kevin Johnson, added O'Cull, who has confidence in the company's ability to achieve 10%-15% annual total shareholder return growth on the other side of the COVID crisis. JACK IN THE BOX STARTED AT BUY: Deutsche Bank analyst Brian Mullan initiated coverage of Jack in the Box (JACK) with a Buy rating and $100 price target, which represents 20% upside from current levels. The resumption of share repurchase serves as a pending catalyst and seems probable, especially given where the company's net leverage ratios appear headed using consensus numbers, Mullan tells investors in a research note. Further, the resumption of consistent domestic net unit growth represents a potential bull case scenario, says the analyst. FACEBOOK PRICE TARGET RAISED TO $330: UBS analyst Eric Sheridan raised the firm's price target on Facebook (FB) to $330 from $242 and keeps a Buy rating on the shares. The company's increasing exposure to e-commerce serves as an incremental driver of revenue, the analyst tells investors in a research note. Sheridan adds that thanks to its product and platform innovation, Facebook should be a beneficiary of rising e-commerce penetration relative to pre-COVID levels, also benefiting from the rise of social commerce and its ability to craft personalized and "highly effective" advertising outcomes.
BUY PALO ALTO ON WEAKNESS, SAYS JEFFERIES: Jefferies analyst Brent Thill recommends adding to Palo Alto Networks (PANW) positions on today's post-earnings selloff. The analyst keeps a Buy rating on the shares with a $300 price target. Palo Alto's fiscal Q4 total revenue and billings "easily" topped Street estimates and its Q1 guide calls for revenue acceleration although the fiscal 2021 guidance was roughly in line, Thill tells investors in a research note. The company is well positioned in the "hybrid world" given its investments in cloud to complement its network assets, says the analyst. Thill continues to view Palo Alto as a "secular winner."
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