Check out today's top analyst calls from around Wall Street, compiled by The Fly.
'COMPELLING' RE-ENTRY POINT: Gordon Haskett analyst Robert Mollins upgraded DoorDash (DASH) to Buy from Hold with a $217 price target. When the analyst downgraded the stock on November 9 with the shares trading at about $230, he had said he would be more constructive on the shares at a better entry point. With the shares down 22% since the downgrade, Mollins sees a "compelling re-entry point," especially against the backdrop of the omicron variant, which could drive an increase in consumer aversion to dining out in the near-term.
UPGRADE AFTER UNDERPERFORMANCE: Baird analyst David George upgraded Capital One Financial (COF) to Neutral from Underperform with an unchanged price target of $145 following the recent underperformance of the shares. Card stocks have meaningfully lagged financials overall since the third quarter earnings season, and the risk/reward of Capital One is now more balanced in the low $140s, George told investors in a research note.
UNDERVALUED BY THE MARKET: Seaport Global analyst Joseph France initiated coverage of CVS Health (CVS) with a Buy rating and $110 price target. The analyst believes the company's benefits business, the repositioning of its retail business, and its move to capitalize on the opportunity in primary care are currently "undervalued" by the market. CVS's managed care business is "getting stronger, growing faster and driving the development of a provider platform that consumers will like," France told investors in a research note.
SELL KRISPY KREME: Goldman Sachs analyst Jared Garber downgraded Krispy Kreme (DNUT) to Sell from Neutral with a price target of $14, down from $15, representing 4% downside. Rising cost pressures across many key inputs for Krispy Kreme's increasingly company-owned model present a key risk for margins, Garber contended. Further, consumer survey data suggests the brand may have limited pricing power to offset inflationary headwinds, the analyst noted. Garber added that the indulgent food category is only expected to grow at 1.1% annually through 2025 as consumers shift toward healthier lifestyle.
MIXED CATALYST PATHWAY: Citi analyst Navann Ty initiated coverage of Alkermes (ALKS) with a Neutral rating and $22 price target. The analyst sees a "mixed catalyst pathway" for the company. The stock is 25% since the Johnson & Johnson (JNJ) partial termination announcement but it has "mixed-to-negative near-term catalysts," Ty told investors in a research note. The analyst also noted that Alkermes has low margins versus its specialty pharma peers and that Citi expects the company's 2023 and 2024 EBITDA margins to be blow the current guidance of 20%-25%.