Kohl's upgrade and Hasbro downgrade also among notable calls
Check out today's top analyst calls from around Wall Street, compiled by The Fly.
'SIMPLY TOO CHEAP': MoffettNathanson analyst Craig Moffett upgraded Verizon (VZ) to Buy from Neutral with a price target of $66, up from $59. While he still expects Verizon to lose share to T-Mobile (TMUS), he notes that the stock is now trading at just half the market's P/E multiple, which is "simply too cheap." Moffett has also raised his expectations for Verizon's average revenue per user, or ARPU, in 2021, and said he views the company as positioned to "get more for less" in the upcoming C-Band auction.
SLACK ACQUISITION: Citi analyst Walter Pritchard downgraded Salesforce (CRM) to Neutral from Buy with a price target of $250, down from $300. The analyst told investors that he is not a fan of the Slack Technologies (WORK) acquisition, saying the multiple paid "makes it challenging to see a positive return." There is little near-term upside to Salesforce shares as questions around organic growth will likely surface following the deal, Pritchard contended.
Meanwhile, MKM Partners, Piper Sandler, Stephens and Wells Fargo also downgraded Slack Technologies following the news.
'TRANSFORMATIONAL' ANNOUNCEMENT: Deutsche Bank analyst Paul Trussell upgraded Kohl's (KSS) to Buy from Hold with a price target of $49, up from $28. Tuesday's "transformational announcement" of a partnership with Sephora combines with other "unique traffic drivers" for Kohl's, including Amazon (AMZN) returns and expansion of athletic and outdoor, Trussell told investors in a research note. The analyst's math suggests that the addition of Sephora could add $1B in incremental sales once fully rolled out
SHARES 'APPEAR FAIRLY VALUED': BMO Capital analyst Gerrick Johnson downgraded Hasbro (HAS) to Market Perform from Outperform with an unchanged price target of $90. The investment thesis has quickly played out as the news flow out of Entertainment One has improved and the company's toy business has benefited from strong toy sales this holiday season, Johnson told investors in a research note. The analyst feels the market now better appreciates both aspects of the Hasbro story and that the shares "appear fairly valued."
ON THE SIDELINES: Susquehanna analyst John Coffey initiated coverage of Shopify (SHOP) with a Neutral rating and $950 price target, which reflects a sum-of-the-parts valuation and valued against the multiple of peers. The analyst noted Shopify Payments is now the company's largest source of revenue and values it separately against peer online payments companies.
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