Fly Intel: Top five analyst downgrades » 10:1308/0708/07/20
ILMN, CARG, CVNA, DISCA, SERV
Catch up on today's…
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Illumina (ILMN) downgraded to Neutral from Overweight at Piper Sandler with analyst Steven Mah saying the company's Q2 revenue decline 25% year-over-year. 2. CarGurus (CARG) downgraded to Neutral from Buy at BTIG with analyst Marvin Fong saying the company's rate of recovery could be slower than what the stock is implying. 3. Carvana (CVNA) downgraded to Neutral from Buy at BofA with analyst Nat Schindler saying he views the risk/reward as more balanced at current share levels. 4. Discovery (DISCA) downgraded to Neutral from Outperform at Macquarie. 5. ServiceMaster (SERV) downgraded to Equal Weight from Overweight at Morgan Stanley with analyst Toni Kaplan saying the stock has outperformed the S&P 500 since April and her new price target only offers 4% upside from yesterday's closing price. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
Flooring companies not excluded from tariffs under USTR order, says Wedbush » 09:5408/0708/07/20
Wedbush analyst Seth…
Wedbush analyst Seth Basham says that while many products imported from China will be excluded from tariffs through December 31, 2020, flooring was not among them, which will lead to increased costs of certain luxury vinyl tile and possibly laminate flooring imported from China that was previously excluded from 25% tariffs. The analyst notes that Floor & Decor (FND) and Lumber Liquidators (LL) booked material refunds from the tariff exclusions in late 2019 and have been purchasing these products from China at the non-tariffed price since then, and with the tariffs exclusions expiring, the companies will now pay 25% more for the products. The analyst expects the companies to raise prices to combat the higher prices, and sees the potential for a mid-single digit impact to earnings growth for F&D in Q4 and a low-double digit impact for Lumber Liquidators.
Largest borrow rate increases among liquid names » 08:5308/0708/07/20
DGLY, APHA, GNPX, CCL, JMIA, FMCI, AAL, OAS, CGC, MAC
Latest data shows the…
Latest data shows the largest indicative borrow rate increases among liquid option names include: Digital Ally (DGLY) 48.42% +2.21, Aphria (APHA) 10.25% +1.79, Genprex (GNPX) 79.99% +1.27, Carnival (CCL) 8.37% +0.49, Jumia Technologies (JMIA) 18.77% +0.24, Forum Merger II (FMCI) 0.61% +0.21, American Airlines (AAL) 2.81% +0.18, Oasis Petroleum (OAS) 26.25% +0.15, Canopy Growth (CGC) 13.09% +0.15, and Macerich (MAC) 9.89% +0.14.
Lowe's price target raised to $187 from $156 at Jefferies » 08:2108/0708/07/20
Jefferies analyst Jonathan Matuszewski raised the firm's price target on Lowe's (LOW) to $187 from $156 as he views the company's pivot toward a younger customer and Pro-focused initiatives as underappreciated. The analyst, who is raising his second quarter and second half estimates based on data checks and vendor trends, thinks the stock will move higher as spending by homeowners under 35 years old normalizes and Pro Loyalty enrollment "balloons." Matuszewski also raised his price target on Home Depot (HD) shares to $306 from $285 and keeps Buy ratings on both stocks.
ServiceMaster downgraded to Equal Weight on valuation at Morgan Stanley » 08:0408/0708/07/20
As previously reported,…
As previously reported, Morgan Stanley analyst Toni Kaplan downgraded ServiceMaster to Equal Weight from Overweight with a price target of $44, up from $41, following the company's Q2 report. The stock has outperformed the S&P 500 since April and her new price target only offers 4% upside from yesterday's closing price, Kaplan noted. She sees a more balanced risk/reward in the near-term as the catalysts of stronger than expected results during COVID, a CEO appointment, and keeping termite claims within expected levels for a few quarters have now already passed, the analyst argues.
PriceSmart reports July merchandise sales up 2.2% y-o-y » 08:0108/0708/07/20
PriceSmart announced July…
PriceSmart announced July net merchandise sales up 2.2% to $261.4M from $255.8M in July a year earlier. Foreign currency exchange fluctuations impacted net merchandise sales negatively by 3.7% or $9.6M versus the same one-month period in the prior year. There were 46 warehouse clubs in operation at the end of July 2020 and 43 warehouse clubs in operation at the end of July 2019. Comparable net merchandise sales for the 42 warehouse clubs open at least 13 1/2 full months decreased 4.5% when compared to the same four-week period last year. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by 3.6% or $8.3M versus the same period in the prior year.
Prestige Consumer downgraded to Neutral from Buy at DA Davidson » 07:5008/0708/07/20
DA Davidson analyst Linda…
DA Davidson analyst Linda Bolton Weiser downgraded Prestige Consumer to Neutral from Buy with a price target of $45, down from $49. The company's EBITDA is "stable" but not growing, the analyst tells investors in a research note, adding that Prestige is set for retailer inventory reductions in Q2 amid consumption declines in its COVID-impacted brands. Bolton Weiser further states that the company is likely to post a sales decline in each quarter of FY21, so valuation on the stock "could fail to move higher."
Prestige Consumer downgraded to Neutral from Buy at DA Davidson » 06:5908/0708/07/20
DA Davidson analyst Linda…
DA Davidson analyst Linda Bolton Weiser downgraded Prestige Consumer to Neutral from Buy with a $45 price target.
Carvana downgraded to Neutral from Buy at BofA » 06:1208/0708/07/20
BofA analyst Nat…
BofA analyst Nat Schindler downgraded Carvana to Neutral from Buy with a price target of $230, up from $150. The analyst views the risk/reward as more balanced at current share levels. Carvana is well positioned for a "long growth runway," but current valuations fully price in a "fast recovery" while capacity constraints may limit multiple expansion from current levels, Schindler tells investors in a research note.
Carvana downgraded to Neutral from Buy at BofA » 06:0408/0708/07/20
BofA downgraded Carvana…
BofA downgraded Carvana to Neutral from Buy.