NIO Inc. upgrade, Expedia and TripAdvisor coverage initiations also among notable calls
Check out today's top analyst calls from around Wall Street, compiled by The Fly.
ON TRACK FOR CONTINUED STRONG GROWTH: Argus analyst John Staszak upgraded Pinterest (PINS) to Buy from Hold with an $80 price target. The analyst noted that the company posted "solid" third quarter results and looks to be on track for continued strong growth in both monthly average users and average revenue per user. Staszak added that Pinterest is also benefiting from "streamlined" advertising systems through the Pinterest Partners Program for smaller merchants and product improvements like Shop tab.
'ABUNDANCE' OF GROWTH OPPORTUNITIES: Barclays analyst Brandon Oglenski upgraded FedEx (FDX) to Overweight from Equal Weight with a price target of $360, up from $240. A more collaborative future between FedEx's transportation networks could signal the beginning of a multi-year upcycle, Oglenski told investors in a research note. The analyst sees an "abundance of growth opportunities" given the acceleration of e-commerce market adoption during the pandemic coupled with FedEx's Ground network that he says provides the lowest cost final mile delivery of the large private U.S. operators.
LONG-TERM GROWTH EXPECTED: Goldman Sachs analyst Fei Fang upgraded NIO Inc. (NIO) to Neutral from Sell with a price target of $59, up from $7.70, to reflect the long-term growth now expected. The analyst admitted to underestimating the benefits to NIO from powertrain breakthroughs, the introduction of its battery as a service program, and regulatory incentives that turned around electric vehicle market demand from an ongoing decline. Combined, all of these factors have provided "significant tailwinds" to NIO's sale volumes, Fang told investors in a research note. The analyst expects an increase in electric vehicle penetration from 5% this year to 20% in 2025.
ONLINE TRAVEL AGENCIES COVERAGE INITIATIONS: Bernstein analyst Richard Clarke started coverage on the Online Travel Agencies group with a cautious long-term view.
The analyst initiated coverage of Expedia (EXPE) with a Market Perform rating and $113 price target. While he believes Expedia will see the same core slowdown as Booking (BKNG), he sees its take rate being under less pressure and thinks it can offset this with cost savings.
Additionally, Clarke also started TripAdvisor (TRIP) with an Outperform rating and $35 price target. While TripAdvisor's core metasearch business is in active decline, he sees opportunities for growth in Experiences as well as Restaurants & B2B services.
Lastly, the analyst initiated coverage of Booking Holdings (BKNG) with an Underperform rating and $1,720 price target. While Booking has been the best quality business with the fastest growth and highest margin among the group historically, that also means it suffers the most from what he expects to be a slowdown in hotel OTA growth.
'BEST IN CLASS' VACCINE PRICED IN: Bank of America analyst Tazeen Ahmad downgraded BioNTech (BNTX) to Neutral from Buy with a price target of $126, up from $123. BioNTech looks to be on track with partner Pfizer (PFE) to launch the first vaccine against COVID-19 by year-end, pending approval, and a "best in class" vaccine appears to be largely priced in at the stock's current value, Ahmad told investors. The analyst estimates the BNT162b2 vaccine penetrating 40% of the global market in early years of the launch with $8.1B in sales in 2021.
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