Check out today's top analyst calls from around Wall Street, compiled by The Fly.
ORACLE UPGRADED AT RBC: RBC Capital analyst Alex Zukin upgraded Oracle (ORCL) to Outperform from Sector Perform with a price target of $68, up from $60. The analyst cites the company's acquisition of TikTok as a Oracle Cloud Infrastructure customer as a potential catalysts to shares. Depending on the valuation at which Oracle invests, there could be as much as 12% upside in market value to Oracle over the next 12 months, Zukin tells investors in a research note.
William Blair analyst Jason Ader views the TikTok deal as a "major coup" for Oracle. Not only will the company be able to monetize any potential upside from its proposed 12.5% stake in TikTok Global after the eventual U.S. initial public offering, but also TikTok Global adds a "massive" new hosting customer for Oracle's cloud infrastructure service, Ader tells investors in a research note. One downside of the deal is that Oracle "will now be in the hot seat" when it comes to data privacy and security, as the onus will be on the company to ensure U.S. user data is safe and secure, adds the analyst. Ader has a Market Perform rating on Oracle.
CAPRI UPGRADED ON FASTER RECOVERY: Morgan Stanley analyst Kimberly Greenberger upgraded Capri Holdings (CPRI) to Overweight from Equal Weight with a price target of $29, up from $15. Given the faster than expected global retail comparable sales recovery, Greenberger now thinks her unchanged 2020 estimates "remain conservative and beatable" and she is raising her 2021 and 2022 forecasts to account for the sharper revenue recovery pace, the analyst tells investors. She also points to Versace's latest results as underscoring its long-term revenue and margin potential.
SNOWFLAKE STARTED AT SUMMIT: Summit Insights analyst Srini Nanduri initiated coverage of Snowflake (SNOW) with a Sell rating and $175 price target. The analyst sees the company as the "most expensive name in all tech", offering limited differentiation relative to Redshift, Big Query, and Azure SQL Database. Nanduri adds that Snowflake trades at enterprise value of 76-times next-12-months sales, which is higher than Zoom Video's (ZM) 41-times, Shopify's (SHOP) 31-times, and Datadog's (DDOG) 32-times, adding that the stock is at a risk of a "violent selloff" given the uncertain macro environment.
TENET DOWNGRADED ON STALLED HOSPITAL RECOVERY: JPMorgan analyst Gary Taylor downgraded Tenet Healthcare (THC) to Underweight from Neutral with a price target of $20, down from $28. National hospital revenue trends recovered by late June, but have remained generally stalled since, Taylor tells investors in a research note. Further, the analyst believes Tenet's Florida hospitals are "materially underperforming" statewide revenue performance in Q3. Taylor also sees an "increased political overhang" on the space. DARDEN DOWNGRADED TO NEUTRAL: Wedbush analyst Nick Setyan downgraded Darden (DRI) to Neutral from Outperform with a price target of $95, up from $88. Setyan believes Darden's current valuation appropriately reflects the potential for accelerating organic growth in the medium- to longer-term as market share gains accelerate, as well as some risk to this relatively optimistic scenario playing out over the next 3-5 years. The analyst notes that Q1 checks at Olive Garden point to SSS growth largely in line with expectations and checks at Longhorn point to continued improvement in line-to-above expectations.
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