KeyBanc upgrade of Goodyear Tire also among today's top calls
Check out today's top analyst calls from around Wall Street, compiled by The Fly.
ANOTHER TESLA UPGRADE: Evercore ISI analyst Chris McNally upgraded Tesla (TSLA) to In Line from Underperform with a $650 price target. Acknowledging the firm has "been on the considerably wrong side of TSLA for over a year now," McNally said the new rating more accurately reflect "how we typically discuss the stock." He previously struggled in analysis of Tesla since he viewed it as a "growth + premium Auto" company, but he believes tech/retail investors see Tesla as two separate Tech companies - one company that is the market leader in electric vehicles and also an "optionality/amalgamation of multiple adjacent call options" on everything from full self-driving to storage to battery and powertrain tech, McNally said.
'NUMEROUS PATHWAYS' TO UPSIDE SEEN FOR GOODYEAR: KeyBanc analyst James Picariello upgraded Goodyear Tire (GT) to Overweight from Sector Weight with a $14 price target. The analyst sees "numerous pathways" to earnings upside through 2022. He expects Goodyear to "solidly outperform" the U.S. replacement market before any likely benefits from the latest tariffs outcome and realize initial channel realignment gains in Europe. Goodyear Tire has "numerous" company-specific and industry tailwinds in 2021, Picariello tells investors in a research note.
HOUSING MARKET STRENGTH: RBC Capital analyst Mike Dahl upgraded D.R. Horton (DHI) to Outperform from Sector Perform with a price target of $80, up from $75. Dahl believes the company's significant local market share better positions it to capture strong demand and mitigate land and labor constraints which are expected to intensify in 2021.
TRIPADVISOR A BUY IDEA: Deutsche Bank analyst Lloyd Walmsley placed a "Catalyst Call: Buy Idea" on shares of TripAdvisor (TRIP) while keeping a longer term Hold rating on the name. The analyst is growing more positive on TripAdvisor and its new Tripadvisor Plus subscription beta product. He thinks Tripadvisor Plus could see a path to over 20M subscribers in a bull case, worth over $60 per share, but notes it is extremely early in the rollout.
CHIPOTLE NAMED TOP PICK: Loop Capital analyst Lynne Collier reiterates a Buy rating and $1,600 price target on Chipotle (CMG) shares following recent investor calls with management, saying Chipotle is one of the firm's favorite restaurant names for 2021. The analyst remains confident that Chipotle has multiple levers in place to drive strong performance over the next several years.
Separately, BTIG analyst Peter Saleh raised the firm's price target on Chipotle to $1,600 from $1,450 and keeps a Buy rating on the shares. Saleh believes Chipotle's investment in drive-thru restaurants will allow the company to unlock greater menu innovation and strengthen new unit returns. The analyst estimates this format could reach more than 1,000 units over the next five years, allowing the company to expand its operating hours with limited incremental costs and potentially open the door for new dayparts like breakfast.
Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street