Kraft Heinz downgrade at Piper also among today's top calls
Check out today's top analyst calls from around Wall Street, compiled by The Fly.
PENT-UP DEMAND: Wedbush analyst Michael Pachter upgraded Imax (IMAX) to Outperform from Neutral with a price target of $26, up from $22. Pent up demand for out-of-home entertainment drove outsized market share for Imax in China, Japan, and elsewhere in Asia over the last several months, particularly in Q1, and Pachter expects similar pent-up demand in North America and Europe to result in market share gains once the film slate returns to a normal cadence, the analyst tells investors in a research note.
HARLEY-DAVIDSON DOWNGRADED: Morgan Stanley analyst Billy Kovanis downgraded Harley-Davidson (HOG) to Underweight from Equal Weight with a price target of $38, up from $36. The analyst states that investors embraced the message from the company CEO about increasing desirability and profitability, but Harley-Davidson is facing secular headwinds, while expectations to execute are now higher, Kovanis tells investors in a research note. VALUATION, COST HEADWINDS: Piper Sandler analyst Michael Lavery downgraded Kraft Heinz (KHC) to Neutral from Overweight with an unchanged price target of $41. The analyst continues to believe that Kraft is better positioned to drive organic revenue growth than it has been in recent years. However, with a 44% increase in the share price since late September, coupled with surges in commodity cost inflation, the stock's risk/reward to is "unattractive near-term," Lavery tells investors in a research note. His analysis suggests Kraft Heinz lags large cap peers in the pricing power that may be needed to maintain sales momentum in an inflationary environment.
'MORE PLATFORM THAN STREAMING SERVICE': Jefferies analyst Andrew Uerkwitz initiated coverage of Spotify (SPOT) with a Buy rating and $360 price target. He argues that "Spotify is more platform than streaming service," adding that in his view platforms have "stickier customers," are less likely to be disintermediated by new technologies, and have a longer tail of growth and margin expansion. He sees Spotify becoming "the primary audio platform for creators," Uerkwitz added.
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