Check out today's top analyst calls from around Wall Street, compiled by The Fly.
JPMORGAN LOWERS GE PRICE TARGET TO $6: In a research note wrapping up the company's Q3 results, JPMorgan analyst Stephen Tusa cut his price target for shares of General Electric (GE) to $6 from $10. The outcome of GE's results was worse than expected "on almost all fronts," with forecasts for free cash flow and EBITDA "moving materially lower," Tusa said. Further, a "material change" in language from the quarterly filing "suggests a negative step down in the leverage situation," he added. The analyst believes, however, that the story is "not really about liquidity, it's about a deterioration in run rate fundamentals." On that front, Tusa expects the "anchor" on earnings, free cash flow and the dividend to all be down ~85% as "the dust continues to settle." He kept an Underweight rating on General Electric shares.
SKYWORKS CUT TO NEUTRAL AT TWO FIRMS: BofA Merrill Lynch analyst Vivek Arya downgraded Skyworks (SWKS) to Neutral from Buy and lowered his price target on the shares to $92 from $120 after cutting his calendar 2019 pro forma EPS view by about 8% following the company's "disappointing" December quarter outlook. While Arya sees potential for Skyworks to expand into the new premium filter market and strength in its non-smartphone markets, he also believes the core high-end smartphone market has now matured and doesn't think content gains can offset unit weakness until perhaps the 5G cycle begins in earnest. The analyst, who now projects Skyworks' FY19 sales growth at only about 1%, down from his 7% prior forecast, believes Apple (AAPL) iPhone uncertainty could persist, he added.
Additionally, B. Riley FBR analyst Craig Ellis downgraded Skyworks Solutions to Neutral from Buy and lowered his price target for the shares to $89 from $105. The company's reduced outlook pushes out growth catalysts, Ellis said in his post-earnings research note.
SYNAPTICS CUT TO SECTOR WEIGHT BY KEYBANC: KeyBanc analyst John Vinh downgraded Synaptics (SYNA) to Sector Weight from Overweight. In a research note to investors, Vinh said his latest latest carrier survey indicated sell-through of the Apple iPhone XR has been disappointing, with meaningful inventory starting to accumulate in store channels. Additionally, he sees an inability for Synaptics to monetize early cycle growth in TDDI given supply constraints. He sees fair value in the range of $35-$40.
GOLDMAN UPGRADES CREE TO BUY: Goldman Sachs analyst Brian Lee upgraded Cree (CREE) to Buy with a price target of $58, saying his more in-depth field work and market analysis around the company's silicon carbide opportunity has made hime "incrementally more bullish" on its growth potential. The analyst noted that the silicon carbide market could reach $4B over the coming decade, stating that Cree is one of the unique and more pure-play ways to gain leverage to its investment theme. The analyst further cites the company's incumbency status of up to 30% market share along with its "unique vertically integrated positioning."
GOLDMAN SAYS CONCERNS OVERBLOWN, UPGRADES MONSTER: Goldman analyst Judy Hong added Monster Beverage (MNST) to the Conviction Buy List saying concerns over the dispute Coca-Cola (KO) are overdone and recommended buying shares on weakness. Hong believes Monster's shares downside is limited from a Coca-Cola Energy launch and does not believe the partnership is in jeopardy. The analyst sees upside to consensus 2019/20 estimates and a path to her $66 price target based on mid-teens plus earnings growth.
GE Aerospace
-0.64 (-7.04%)
Skyworks
-7.67 (-9.20%)
Apple
-3.73 (-1.79%)
Synaptics
+2.53 (+7.24%)
Cree
+1.67 (+4.14%)
Monster Beverage
+1.97 (+3.64%)
Coca-Cola
+0.51 (+1.03%)