QuantumScape and Bumble coverage initiations also among notable calls
Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BUY SNOWFLAKE: Deutsche Bank analyst Patrick Colville upgraded Snowflake (SNOW) to Buy from Hold with a price target of $300, up from $270. The company's product revenue rose 116% in the fourth quarter, a two-percentage point sequential acceleration and at the high end of the buy-side expectations, Colville told investors in a research note. The analyst sees Snowflake's growth as suggestive of a "very large" total addressable market and a "clear product market fit." The stock's risk/reward now looks more favorable, Colville said.
'COMPELLING' LONG-TERM ENTRY POINT: Piper Sandler analyst Harsh Kumar upgraded Qualcomm (QCOM) to Overweight from Neutral with a price target of $160, up from $150. Current share levels "represent a compelling long-term entry point," Kumar told investors in a research note. The analyst noted that Qualcomm is trading at a five-year low relative to the SOX on a price-to-earnings basis, and argued the company is one of the cheapest in large/mega cap semiconductors. Kumar also believes the company's core business "remains robust, "with 5G handsets growing 150% in 2021 and 47% in 2022.
ON THE SIDELINES: Baird analyst Ben Kallo initiated coverage of QuantumScape (QS) with a Neutral rating and $52 price target, which reflects his discounted free cash flow mode. The analyst acknowledged that the experienced management team, strong balance sheet, and large TAM leaves him optimistic. However, Kallo is looking for more positive proof points before becoming more constructive.
SOLID NICHE: Susquehanna analyst Shyam Patil initiated coverage of Bumble (BMBL) with a Positive rating and $78 price target. Noting that he online dating market is "large and growing at a healthy double-digit rate," Patil told investors that he believes market dynamics, such as evolving cultural norms and lengthening dating windows, are helping to spur growth of the category. Bumble has "firmly entrenched itself in the market, carving out a solid niche with its female-centric dating app," he added.
DIVERSIFIED MIX OF BUSINESS, ONGOING TAILWINDS: Truist analyst David MacDonald upgraded Anthem (ANTM) to Buy from Hold with a price target of $375, up from $360. The analyst is positive on the company's diversified mix of business, ongoing tailwinds in government, and solid trends in Commercial, which "underpin attractive core trends." Anthem is also advancing its IT capabilities and has a " sizable opportunity to further penetrate the book", MacDonald added, stating that the company's financial flexibility remains solid, with core trends being potentially augmented by its capital deployment.
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