Check out today's top analyst calls from around Wall Street, compiled by The Fly.
DISNEY UPGRADED TO OUTPERFORM AT IMPERIAL: Imperial Capital analyst David Miller upgraded Disney (DIS) to Outperform from In-Line and raised his price target for the shares to $129 from $113. While fiscal 2019 should be a "transitional year," fiscal 2020 brings an "abundance of catalysts," Miller said. The analyst sees Disney in fiscal 2019 continuing its campaign with the various regulatory agencies abroad in seeking approval for the 21st Century Fox (FOX, FOXA) merger and continuing its investment spending in the BAMTech platform. However, in fiscal 2020, Miller sees shareholders benefiting from "four distinct catalysts," and he thinks the market may price these in "fairly quickly." The catalysts are a strong film slate, the opening of the two Star Wars lands, "substantial pricing power" around its three over-the-top services, and the resumption of share buybacks.
MORGAN STANLEY CUTS MACERICH, UPGRADES TAUBMAN: Morgan Stanley analyst Richard Hill downgraded Macerich (MAC) to Underweight and lowered his price target for the shares to $45 from $58. The analyst believes the market is underappreciating the company's free cash flow declines in 2019 and 2020. Macerich's dividend payout ratio is over 100% of free cash flow, said Hill. Further, the consensus believes Macerich is a more likely takeover candidate than Taubman (TCO), "but it's not a given to us," Hill said. The analyst coupled the downgrade of Macerich with an upgrade of Taubman to Equal Weight from Underweight, while lowering his price target for the shares to $50 from $51.50. The analyst sees a more balanced risk/reward at current share levels saying consensus net asset value estimates are around 60% above the current stock price.
HORMEL CUT TO HOLD AT JEFFERIES: Jefferies analyst Akshay Jagdale downgraded Hormel Foods (HRL) to Hold from Buy with an unchanged price target of $44. Sector rotation into high-quality staples like Hormel, combined with "significantly better" pork margins, have more than offset bottoming turkey margins, resulting in the stock rallying 34% over the last nine months, Jagdale said. The company deserves a double-digit valuation premium to peers, but the current 34% premium "prices in all the good news," added the analyst. He downgraded Hormel on valuation and awaits a better entry point into the name. In late morning trading, Hormel shares were trading lower by over 2.7%.
GOLDMAN UPGRADES MARRIOTT, CUTS WYNDHAM: Goldman Sachs analyst Stephen Grambling added Marriott International (MAR) to his firm's America's Conviction List while keeping a Buy rating on the shares. The analyst lowered his price target for the shares to $153 from $159. The stock has been penalized recently amid Starwood integration issues, but these will prove temporary and position Marriott better in the future, Grambling said. He believes that as the disruption normalizes, net unit growth should accelerate and Marriott should post upside to consensus estimates. Grambling removed Wyndham Hotels & Resorts (WH) from his firm's America's Conviction List while keeping a Buy rating on the shares. The analyst lowered his price target for the stock to $70 from $76. Grambling reduced his estimates for Wyndham to reflect incremental caution around timeshare amid softening housing data and rising rates. However, he continues to believe upside from the La Quinta acquisition, accelerating unit growth, and fee rates should all drive upside to consensus estimates and a "re-rating" versus peers. Nonetheless, Grambling sees a more attractive risk/reward in shares of Marriott.
Wyndham Hotels
+0.15 (+0.31%)
Disney
+1.02 (+0.91%)
Fox Corp.
+0.24 (+0.49%)
Fox Corp.
+0.15 (+0.31%)
Macerich
-0.32 (-0.65%)
Bought by SPG
+0.67 (+1.32%)
Hormel Foods
-1.26 (-2.76%)
Marriott
+0.08 (+0.07%)