Affirm and Squarespace coverage initiations also among notable calls
Check out today's top analyst calls from around Wall Street, compiled by The Fly.
'SUPER ON-RAMP' TO EVERYTHING CRYPTO: Canaccord analyst Joseph Vafi initiated coverage of Coinbase (COIN) with a Buy rating and $285 price target. Vafi views Coinbase as a "super on-ramp" to everything crypto, and believes it stands to be a major beneficiary as ways of transacting goods and services becomes increasingly tied to the blockchain. Further, the analyst sees recent market weakness as making the short-term Coinbase investment case more intriguing over the past few weeks.
RISK/REWARD 'SIMPLY TOO GREAT': Pivotal Research analyst Jeffrey Wlodarczak upgraded Dish Network (DISH) to Buy from Hold with a price target of $60, up from $50. The new target price is "arguably conservative considering the significant upside potential" in the Dish 5G wireless opportunity and to a much lesser extent from the likely inevitable merger with AT&T's (T) DirecTV, Wlodarczak told investors in a research note. The analyst also pointed out that Dish is in the process of rolling out a "revolutionary cloud-native/software-driven 5G network" with key partner Amazon Web Services (AMZN) that should allow 5G services to be quickly developed. Dish's risk/reward is "simply too great," Wlodarczak contended.
ACCELERATING SECULAR TAILWINDS: Mizuho analyst Dan Dolev initiated coverage of Affirm (AFRM) with a Buy rating and $90 price target. The company should benefit from "accelerating secular tailwinds" in the U.S. buy-now-pay-later market, Dolev told investors in a research note. The analyst sees a "clear path" to sustained 30%-35% long-term annual sales growth and 20%-30% long-term margins.
BUY SQUARESPACE: Mizuho analyst Siti Panigrahi initiated coverage of Squarespace (SQSP) with a Buy rating and $80 price target. Squarespace offers a "robust" software-as-a-service platform to build websites and is "differentiated through aesthetic appeal, ease of use, and features to garner market share in the digital goods and services marketplace," Panigrahi told investors in a research note. The analyst sees Squarespace as a "compelling investment with a valuation that does not yet reflect its promising fundamentals."
IMPROVING BOOKING MOMENTUM: Wolfe Research analyst Greg Badishkanian upgraded Carnival (CCL), Royal Caribbean (RCL) and Norwegian Cruise Line (NCLH) to Outperform from Peer Perform with price targets of $32, $94 and $36, respectively. The upgrade of the "Big 3" public cruise stocks comes after his channel checks suggested improving booking and pricing trends out of North America over the past month, with stronger trends over the past week. While there is some lingering uncertainty surrounding the U.S. restart, the unknowns are "largely transitory when viewed against the broader reopening backdrop," Badishkanian contended. Cumulative 2022 bookings are now up 10% to 15% versus 2019 levels with signs of improving first quarter demand, and pricing is up in the 15% to 25% range versus 2019 before factoring in future cruise credits, the analyst added. He expects pent-up demand and "normalized" capacity to support debt pay down efforts.
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