Microsoft initiation at Goldman Sachs also among today's top calls
Check out today's top analyst calls from around Wall Street, compiled by The Fly. DISNEY UPGRADE: UBS analyst John Hodulik upgraded Disney (DIS) to Buy from Neutral with a price target of $200, up from $155. Disney is positioned to achieve scale similar to streaming leader Netflix (NFLX) with 340M-plus global subscribers by 2024, Hodulik tells investors in a research note. The analyst believes Disney's "premium" intellectual property creates pricing power and enables the company to spend less per subscriber on content, "driving better economics over time." Further, its Parks business will become a beneficiary of vaccine availability and pent up demand for leisure travel in the second half of 2021, adds Hodulik.
'HOT NEW PRODUCTS': JPMorgan analyst Ryan Brinkman upgraded Ford (F) to Overweight from Neutral with a price target of $14, up from $11. An upcoming slate of "hot new products" should bring substantial benefits to Ford in terms of volume, mix and pricing, Brinkman tells investors in a research note. The products include the new Mustang Mach-E battery electric crossover, the two- and four-door Bronco off-road SUVs and the Bronco Sport crossover, says the analyst. Brinkman views the all-new F-150 as the most important from a financial perspective, however, and believes it will become a big contributor to profit when assembly lines return to full speed by Q2 of 2021.
WELLS UPS EXPEDIA: Wells Fargo analyst Brian Fitzgerald upgraded Expedia (EXPE) to Overweight from Equal Weight with a price target of $180, up from $110. Airbnb's (ABNB) "strong market reception" since its initial public offering highlights the opportunity for Expedia to unlock value at its own short-term rental asset, Vrbo, Fitzgerald tells investors. A return to more transparent disclosure of Vrbo's financial performance, efforts to further increase monetization, and a potential a Vrbo IPO "could represent significant value drivers" for Expedia shares, says the analyst. MICROSOFT STANDS OUT 'UNIQUELY': Goldman Sachs analyst Kash Rangan initiated coverage of Microsoft (MSFT) with a Buy rating and $285 price target. The company stands out "uniquely" with its presence across all layers of the cloud stack, the analyst tells investors in a research note. Rangan adds that Microsoft is well positioned to double its $60B commercial cloud business which includes Azure, Office 365, Dynamics, and LinkedIn Commercial into a $120B-$140B business longer term. The analyst further states that Office 365 could potentially double its installed base from over 255M to 500M given the massive number of knowledge workers worldwide.
UNDER THE RADAR: Cantor Fitzgerald analyst Kristen Kluska initiated coverage of iBio (IBIO) with an Overweight rating and $3 price target. iBio focuses on plant-made biologics manufacturing, which is supported by its proprietary FastPharming and Glycaneering Systems, Kluska tells investors in a research note. The analyst believes iBio remains "under the radar" and that its capabilities, beyond CDMO services, are not yet fully recognized by investors. She thinks additional clarity to running trials and data "could drive significant upside."
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