Check out today's top analyst calls from around Wall Street, compiled by The Fly.
DEUTSCHE BANK UPGRADES AIRLINE STOCKS TO BUY: American Airlines (AAL), Delta Air Lines (DAL), and United Continental (UAL) upgraded to Buy from Hold at Deutsche Bank. Deutsche Bank analyst Michael Linenberg upgraded American Airlines Group to Buy and raised his price target for the shares to $47 from $40. Linenberg also upgraded Delta Air Lines to Buy and raised his price target for the shares to $60 from $53. For both, the analyst cited the companies' better than expected fuel expense for the upgrade. Finally, Linenberg upgraded United Continental Holdings to Buy and raised his price target for the shares to $100 from $91. The analyst views Tuesday night's Q3 results as solid and increased his earnings outlook to reflect United's "strong" revenues.
CREDIT SUISSE DOWNGRADES HOME IMPROVEMENT RETAILERS, HOMEBUILDERS: Home Depot (HD), Lowe's (LOW), KB Home (KBH), Lennar (LEN), and Meritage Homes (MTH) were all downgraded at Credit Suisse. Credit Suisse analyst Seth Sigman downgraded both Home Depot and Lowe's to Neutral from Outperform, citing his concern that their recent results and stock prices have disconnected from housing. While he sees good reasons for that, Sigman thinks it's difficult to assume that continues, he said. He continues to view Home Depot as best-in-class in retail, but struggle to find multiple upside from its current premium level as housing sentiment shifts and some uncertainty arises, said Sigman, who cut his price target on the stock to $204 from $222. While he continues to expect meaningful improvement in sales and operating profit at Lowe's under new CEO Marvin Ellison, Sigman thinks consensus estimates are baking that in. He lowered his price target on Lowe's shares to $111 from $115.
Additionally, another Credit Suisse analyst, Susan Maklari, downgraded the homebuilders, saying that although she believes housing and macro fundamentals remain "intact," including high consumer confidence and sustained low unemployment, unit gains are likely to moderate. She sees any near-term earnings beats to be offset by even more tempered demand and rising affordability concerns. She downgraded KB Home to Underperform from Neutral and lowered her price target to $18 from $27, and downgraded Lennar and Meritage Homes to Neutral from Outperform and lowered her respective price targets for the shares to $45 from $55 and to $36 from $50.
NETFLIX CUT TO SECTOR WEIGHT AT KEYBANC: KeyBanc analyst Andy Hargreaves downgraded Netflix (NFLX) to Sector Weight from Overweight following the company's quarterly results. While the analyst maintains a favorable view of Netflix's strategic positioning, he believes improving investment efficiency or significant ancillary opportunities are needed to drive upside from current levels, and he does not anticipate either over the next year.
BOFA DOWNGRADES MARTIN MARIETTA, VULCAN: BofA/Merrill downgraded Martin Marietta (MLM) to Neutral from Buy and cut its price target to $179 from 225, and downgraded Vulcan Materials (VMC) to Underperform from Neutral and cut its price target to $103 from $120. . Analyst Timna Tanners thinks increased hurricane activity and unusually heavy rains have contributed to disappointing volumes and a lower multiple is more appropriate given lack of catalysts and concerns the US construction cycle is nearing a peak. Tanners added that Vulcan is expecting margins to be squeezed due to higher diesel costs and is having some challenges in certain regions passing through higher costs.
American Airlines
+0.54 (+1.62%)
Delta Air Lines
+0.71 (+1.34%)
United Airlines
+3.42 (+4.10%)
Home Depot
-9.32 (-4.81%)
Lowe's
-4.32 (-4.08%)
KB Home
-0.95 (-4.42%)
Lennar
-1.51 (-3.42%)
Meritage Homes
-2.35 (-6.53%)
Netflix
+19 (+5.49%)
Martin Marietta
-6.95 (-4.05%)
Vulcan Materials
-4.96 (-4.92%)