Lordstown Motors and Fisker coverage initiations also among notable calls
Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BUY UBER: Nomura analyst Anindya Das initiated coverage of Uber (UBER) with a Buy rating and $80 price target. Uber's scale is a competitive advantage, said Das, who projects that revenue should grow at a 28% compound annual growth rate over fiscal years 2020-2025 and sees a path to profitability at the adjusted EBITDA level by the final quarter of 2021. Further, the analyst believes revenue growth will be driven by growth in the number of global smartphone users, growth in the number of active users of the company's apps, increased frequency of usage of Uber's platform, and growth in average revenue per trip.
MOVING TO THE SIDELINES: Citi analyst Paul Lejuez downgraded Nike (NKE) to Neutral from Buy with a price target of $140, down from $160. The analyst believes in Nike's long-term growth and margin expansion story, but expects near-term pressures due to a slowdown in demand in China related to the Xinjiang cotton issue. Additionally, Nike will see a "big step up" in investments in fiscal year 2022, driving lower margins relative to consensus estimates, Lejuez told investors in a research note. Further, with the valuation near all-time highs, the analyst believes Nike shares look "a bit crowded."
'FIERCELY COMPETITIVE' EV INDUSTRY: Bank of America analyst John Murphy initiated coverage of Lordstown Motors (RIDE) with a Neutral rating and $13 price target, and Fisker (FSR) with a Buy rating and $31 price target as part of a broader research note on electric automakers. While the EV industry is becoming "fiercely competitive" and penetration remains slow, it still translates into an absolute volume growth from a low base and a CAGR of over 30%.
Regarding Lordstown, Murphy added that the company's key competitive advantages come in the form of support from GM (GM) with a production-ready high-volume plant that allows it to bypass obstacles between concept and production, though like its peers, the company remains in the R&D phase. Regarding Fisker, the analyst sees its key competitive advantages coming in the form of an "interesting and attractive" product and its platform sharing, even though its timeline to commercialization is a bit longer. TOP-LINE GROWTH: Bank of America analyst Daniel Bartus reinstated coverage of Twilio (TWLO) with a Buy rating and $480 price target. The analyst believes that the company, as a Communications Platform as a Service "pioneer" and "leader" in the high-growth CPaaS market, can sustain 30%-plus top-line growth for over five years.
STRONG ADVERTISING FUNDAMENTALS: KeyBanc analyst Andy Hargreaves raised the firm's price target on Alphabet (GOOGL) to $2,625 from $2,353, while keeping an Overweight rating on the shares. The analyst expects first quarter earnings and second quarter guidance will reinforce that advertising fundamentals remain strong from share against offline, and COVID-19- affected verticals beginning their recoveries. Further, Hargreaves believes Alphabet is the least controversial stock into earnings given the recovery in Search and modest opex growth point to positive revisions.
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