Check out today's top analyst calls from around Wall Street, compiled by The Fly.
JPMORGAN CALLS HUMANA A 'BEST IDEA' FOR 2019: JPMorgan analyst Gary Taylor upgraded Humana (HUM) to Overweight from Neutral while lowering his price target for the shares to $333 from $354. The analyst also named the company one of his best ideas for 2019. The upgrade reflects the "significant" recent pullback in the shares, Humana's accelerating market share gains, its "attractive" Medicare Advantage exposure and "conservative" balance sheet, Taylor said.
CITI DOWNGRADES SANMINA, CUTS IBM PRICE TARGET: Citi analyst Jim Suva downgraded Sanmina (SANM) to Neutral from Buy and lowered his price target for the shares to $26 from $35. The analyst also cut his price target for Neutral-rated IBM (IBM) to $125 from $165. The outlook for 2019 shows slowing growth across most end markets, Suva wrote in a research note. As such, he expects tech companies to increase their M&A actions coupled with production or sourcing moves away from China.
JEFFERIES UPGRADES MIDSTREAM & REFINING SPACE: Jefferies analyst Christopher Sighinolfi upgraded DCP Midstream (DCP), EnLink Midstream (ENLC), EnLink Midstream Partners (ENLK), Kinder Morgan (KMI), Magellan Midstream Partners (MMP), Plains All American (PAA), Plains GP Holdings (PAGP), Phillips 66 (PSX), Phillips 66 Partners (PSXP), and Targa Resources (TRGP) all to Buy from Hold. The analyst said he finds the Midstream & Refining attractive citing "simplified structures, reduced leverage, minimal equity need, and continued growth." U.S. Midstream and Refining equities are approaching year-end at multi-year lows with valuation multiples 15%-30% below three-year averages, Sighinolfi wrote in a research note titled "Hey Nineteen, That's Real Opportunity." The analyst sees "supportive" 2019-2020 fundamentals and believes investors will find value in the sector. As such, he upgraded these ten names in the space.
CAPITAL ONE 'RECALIBRATES' E&P SECTOR: Capital One analyst Phillips Johnston recalibrated his E&P, or exploration and production, ratings. The analyst upgraded one stock, Continental Resources (CLR), to Overweight from Equalweight. He also downgraded 19 stocks to Equalweight from Overweight, and nine to Underweight, including double downgrading Devon Energy (DVN), Eclipse Resources (ECR), Halcon Resources (HK), and Laredo Petroleum (LPI) to Underweight from Overweight. Johnston said the heavy amount of downgrades are "more a function of new barbell approach rather than the swoon in oil prices," adding that it is "important to note that we would have downgraded as many E&P stocks as we did today even if WTI was still hovering ~$70/bbl. The disproportionate balance of downgrades is therefore much more a reflection of a more rigid and selective barbell strategy of ratings system than a reflection of our forward view of oil and gas prices."
Humana
-2.34 (-0.83%)
Sanmina
-0.3 (-1.26%)
IBM
-1.7 (-1.46%)
DCP Midstream
-0.89 (-2.99%)
EnLink Midstream
-0.18 (-1.76%)
EnLink Midstream Partners
-0.24 (-2.03%)
Kinder Morgan
+0.06 (+0.39%)
Magellan Midstream
-0.23 (-0.40%)
Plains All American
+0.04 (+0.19%)
Plains GP Holdings
+0.03 (+0.14%)
Phillips 66
+0.44 (+0.52%)
Phillips 66 Partners
-0.18 (-0.40%)
Targa Resources
-0.5 (-1.28%)
Continental Resources
-0.8 (-1.96%)
Devon Energy
-0.51 (-2.14%)
Eclipse Resources
-0.033 (-4.06%)
Halcon Resources
-0.07 (-4.24%)
Laredo Petroleum
-0.01 (-0.29%)