Wix.com coverage initiation and Five9 downgrade also among notable calls
Check out today's top analyst calls from around Wall Street, compiled by The Fly.
MULTIPLE TAILWINDS: Goldman Sachs analyst Rod Hall upgraded Qualcomm (QCOM) to Neutral from Sell with a price target of $148, up from $136. The analyst believes Qualcomm is "poised to benefit from multiple tailwinds" in the second half of 2021, including an earlier Apple (AAPL) iPhone launch and improving supply situation. He increased the company's handsets segment estimates to reflect updated handset market expectations, which include Huawei share shift to Qualcomm. Hall sees Qualcomm likely reporting "strong chip numbers" in the second half, driven by higher iPhone builds and increased TSMC (TSM) capacity availability.
NEAR-TERM HEADWINDS: Argus analyst Christopher Graja initiated coverage of BJ's Wholesale (BJ) with a Hold rating. The analyst noted that the company faces near-term headwinds, including inflationary pressures, the limited availability of general merchandise, and reduced at-home food consumption as the pandemic eases. Graja added, however, that he would consider rating the stock at Buy if the share price fell back to $42 following a 28% rally this year.
BUY WIX.COM: Morgan Stanley analyst Elizabeth Elliott initiated coverage of Wix.com (WIX) with an Overweight rating and $339 price target. She argued that Wix.com expanding from a web development platform to a full-suite solution, allowing entrepreneurs to manage their businesses online with tools for e-commerce, payments and marketing should drive better monetization per subscription and more durable top-line growth, and warrants a premium to the stock's historical valuation. The analyst also initiated GoDaddy (GDDY) with an Equal Weight rating and $95 price target.
MOVING TO THE SIDELINES: Needham analyst Scott Berg downgraded Five9 (FIVN) to Hold from Buy. The analyst is positive on the company's sale to Zoom Video (ZM) though he is "questioning" the timing after its "most impressive" reported quarter yet and its "massive" sales opportunity. Berg added that the premium of about 13% over Friday's close "seems lackluster," even though he expects the acquisition to enhance Zoom's ability to sell its Zoom Phone up market to large enterprise customers by leveraging the strong Five9 install base and brand.
SURVEY ON APPLE PAY COMPETITION: Mizuho analyst Dan Dolev lowered the firm's price target on Affirm (AFRM) to $76 from $90, while keeping a Buy rating on the shares. The analyst's survey of 178 Apple Pay users shows that a majority, 54%, are willing to try a potential Apple Pay buy-now-pay-later product. The survey also uncovered "significant customer overlap" between Apple Pay and popular buy-now-pay-later providers, Dolev told investors in a research note. However, the analyst believes Affirm is less vulnerable than other BNPL providers "given more modest customer overlap" with Apple Pay. Nonetheless, the specter of consumer willingness to use Apple Pay BNPL "warrants a lower multiple," he added.
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