Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BARCLAYS UPGRADES NXP SEMICONDUCTORS TO OVERWEIGHT: Barclays analyst Blayne Curtis upgraded NXP Semiconductors (NXPI) to Overweight from Equal Weight while lowering his price target for the shares to $95 from $105. Fundamentals in the U.S. Semiconductor space are not falling as fast as the stock prices, Curtis noted. The analyst said that while he may be early on NXP, the recent selling pressure presents a buying opportunity. He said that while he debated NXP's high auto exposure and Qualcomm (QCOM) disruption, he ultimately felt the stock "had taken too much pain." Curtis sees the company's earnings moving higher given the $5B buyback, which he feels is not fully reflected in estimates.
BARCLAYS UPGRADES AMD TO EQUAL WEIGHT: Barclays analyst Blayne Curtis upgraded AMD (AMD) to Equal Weight from Underweight with an unchanged price target of $25. The analyst is using the recent pullback in AMD shares to upgrade the stock, while he reiterated an Underweight rating on Intel (INTC). Curtis, who admits to being surprised by how much credit AMD got this year, says the company is "ready to put pressure on Intel." Heading into 2019, the "competitive pressure should get very real," Curtis said. The analyst is "surprised by the notion that Intel delivering 10nm client products in 2019 on schedule is now a positive and would highlight that it still does nothing to help Intel navigate a 12-18 month gap in servers." In late morning trading, AMD shares were down 1.9%.
TESLA IN FOCUS AHEAD OF EARNINGS: Barclays analyst Brian Johnson, who has an Underweight rating on Tesla (TSLA) shares with a $210 price target, said Tesla's Q3 results could lead to a rebound in the stock. The analyst, however, expects a "drift down" in the shares on profit and cash worries until the earnings call. Johnson thinks Tesla can report stronger than expected free cash flow in Q3, driven by increased payables. The strong, "albeit temporary," cash flow, along with a non-GAAP profit and likely typical bullish management commentary could drive Tesla shares higher, Johnson said. He believes Tesla's Q4 production "needs to hold steady to preserve cash." This is likely why the company unveiled the mid-priced Model 3 variant, Johnson noted.
Baird analyst Ben Kallo said the Tesla narrative will change with strong Q3 results. The analyst said the focus will be on cash generation given concerns over upcoming capital needs. He believes management could provide an update on the potential to incrementally increase production over the next year, which would be a positive catalyst. Kallo reiterated his Outperform rating and $411 price target on Tesla shares ahead of the company's earnings report, due out after the close Wednesday. In late morning trading, Tesla shares were up 5.7%.
IMPERIAL UPGRADES VIACOM: Imperial Capital analyst David Miller upgraded Viacom (VIA, VIAB) to In-Line and raised his price target for the shares to $29 from $25. There is a "palpable rotation at work in the financial markets away from growth and into value within the Media sector," Miller said after speaking with value-centric portfolio managers. He believes Viacom has many characteristics of a "value moniker," including a low growth rate, a low price/book ratio, and a dividend. Further, Miller thinks the chances of Viacom taking any impairments are low based on its upcoming film slate.
MACQUARIE CUTS DISH TO UNDERPERFORM: Macquarie downgraded Dish (DISH) to Underperform from Neutral. Analyst Amy Young said the path to monetization is less compelling and questions the Dish's next steps as 2020 nears. Young said if Chairman Ergen decides to build, Dish's valuation will change, if he bluffs, spectrum dynamics could work against him. Further, the core video business is still under pressure as linear subs decline and streaming competition increases, the analyst wrote in a note to investors. Young sees further short-term downside as more spectrum enters the market and lowers his price target to $31 from $36 to reflect spectrum valuation. In late morning trading, Dish shares were down 6.5%.
NXP Semiconductors
-0.57 (-0.75%)
Qualcomm
-1.06 (-1.60%)
AMD
-0.52 (-2.08%)
Intel
-0.87 (-1.93%)
Tesla
+14.86 (+5.69%)
Via Renewables
-0.36 (-0.98%)
VIAB
+
Merged into SATS
-2.23 (-6.43%)