Check out today's top analyst calls from around Wall Street, compiled by The Fly.
'SIGNIFICANT' POSITIVE INFLECTION: Guggenheim analyst Seth Sigman assumed coverage of Amazon.com (AMZN) with a Buy rating and $4,300 price target. The analyst is positive on direct-to-consumer e-commerce stocks entering fiscal 2022 as he believes online channel share gains should reaccelerate early next year after months of declines and that normalizing consumer spending growth may be good for the stock. For Amazon, Sigman sees potential for a "significant positive inflection" in early/mid 2022 versus its moderating sales and margin trends more recently.
IMPROVING DEMAND: Mizuho analyst Vijay Rakesh upgraded Micron Technology (MU) to Buy from Neutral with a price target of $95, up from $75. Recent checks indicate demand is improving across the PC, server and handset markets, Rakesh tells investors in a research note. The analyst believes server demand could improve in Q1 of 2022 with Amazon and Google orders returning despite less than 10 week of DRAM inventory. He sees improving demand trends and a "tailwind" for memory.
NEAR-PEAK VALUATION: Guggenheim analyst Seth Sigman downgraded eBay (EBAY) to Neutral with a price target of $80 as he assumed coverage of the stock. The firm's prior rating had been a Buy with an $85 price target. The analyst sees a balance between his positive view of management and their strategic direction versus near-term pressure on growth, declining buyer counts, elevated competitive dynamics, and what he sees as a "near-peak" valuation.
LAST POSITIVE CATALYST: Jefferies analyst Saree Boroditsky initiated coverage of General Electric (GE) with a Hold rating and $100 price target. GE is a transformational story with a new pathway toward simplification, but the company's split announcement is "the last positive catalyst from these efforts," Boroditsky contended. With the company looking to split into three by 2024, investors should refocus on business fundamentals, said Boroditsky, whose sum-of-the-parts analysis supports a $100 stock price. The analyst argued that while splitting up the business should allow each company to be more focused and accountable while providing for strategic optionality, the upside potential is already baked into the stock's current valuation.
Meanwhile, Morgan Stanley analyst Joshua Pokrzywinski resumed coverage of General Electric with an Overweight rating and $125 price target. GE management has significantly reduced the tail risk of Power, leverage/pension, and insurance over the past three years and he had viewed the post-COVID path forward being supported by earnings revisions from Aviation and continued deleveraging that would eventually allow GE to go on offense, said Pokrzywinski, who called the company's recently announced breakup "the logical extension of that." The analyst expects 2022 to show "more promise on most fronts," making GE "a good risk/reward now and even better later as catalysts come more rapidly."
BUY ETSY: Guggenheim analyst Seth Sigman initiated coverage of Etsy (ETSY) with a Buy rating and $330 price target. The analyst has a favorable view on the company's marketplace model and Etsy's ability to be "significantly larger" and more profitable over time.