Angi Homeservices initiation and BJ's Wholesale upgrade also among notable calls
Check out today's top analyst calls from around Wall Street, compiled by The Fly.
'MUCH ROOM AHEAD': JPMorgan analyst Doug Anmuth upgraded Pinterest (PINS) to Overweight from Neutral with a price target of $75, up from $57. The company's "strong" engagement continued in the third quarter and more revenue acceleration is expected in the fourth quarter, Anmuth told investors in a research note. The analyst also said that while his upgrade "comes late," he sees "much room ahead" as Pinterest continues to strengthen its early-stage ad platform and builds out the advertiser base. The shares deserve a "significant premium" based on its growth acceleration, high margins, and strong incremental leverage, Anmuth added.
Meanwhile, MKM Partners analyst Rohit Kulkarni also upgraded Pinterest to Buy from Neutral with a price target of $66, up from $35. The analyst argued that the company's "big" third quarter earnings beat and above-consensus fourth quarter guidance demonstrates that the company's trend of accelerating user growth and monetization is "clearly sustainable." Kulkarni added that the pandemic has led to a "fundamental change" in the way consumers shop online and how social media can play a bigger role in shopping in the future.
BETTER EARNINGS OUTLOOK: Morgan Stanley analyst Simeon Gutman upgraded Bed Bath & Beyond (BBBY) to Equal Weight from Underweight with a price target of $24, up from $6. The strong home furnishings backdrop and the company's aggressive ongoing cost cutting give it a better near- to medium-term earnings outlook than he previously estimated, Gutman told investors. Meanwhile, the company's recent balance sheet improvements give it more time to execute its turnaround, the analyst added.
R5 Capital analyst Scott Mushkin also upgraded Best Buy to Hold from Sell with a $108 price target. The analyst argued that the environment remains similar to Best Buy's August business update when it indicated same-store-sales were running up 20% and shares reflect this positive outlook.
BUY ANGI HOMESERVICES: Credit Suisse analyst Yoni Yadgaran initiated coverage of Angi Homeservices (ANGI) with an Outperform rating and $19 price target. The analyst believes the company has a large $900B total addressable market with relatively few competitors. Further, secular and demographic trends are driving an accelerated move online with a generational wave of Millennial users who have only recently come to market as first-time homebuyers, Yadgaran told investors in a research note.
FOOT TRAFFIC STRENGTH: MKM Partners analyst Bill Kirk upgraded BJ's Wholesale (BJ) to Neutral from Sell with a price target of $37, up from $33. The analyst cited the company's continued foot traffic strength, diminished competitor promotional activity for new members, and its "favorable geographic mix" with exposure to cold weather and COVID-related limited options of food-away-from- home.
MOVING TO THE SIDELINES: JPMorgan analyst Paul Coster downgraded First Solar (FSLR) to Neutral from Overweight with an unchanged price target of $94. After rallying 67% year-to-date, the stock is now trading close to the price target and at "historically-elevated" multiples, Coster told investors in a research note. At the current multiple, and entering a later stage of the Series 6 product transition, focus shifts from sequential improvement in margins and profitability as production capacity fills in to whether First Solar has established a sustainable energy-density and cost/watt advantage in the global solar industry, the analyst added.
Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street