Check out today's top analyst calls from around Wall Street, compiled by The Fly.
PFIZER UPGRADED AT TWO FIRMS: Argus analyst David Toung upgraded Pfizer (PFE) to Buy from Hold with a price target of $55, with the analyst saying he anticipates an upward revenue inflection point in 2021 after flat sales in the second half of 2019 and first half of 2020. After cycling through Lyrica loss of exclusivity over the next year, the analyst anticipates Pfizer to benefit from optimized portfolio of assets as it completes its consumer healthcare business joint venture with GlaxoSmithKline (GSK). Toung added that while he does not "expect major transformational deals," he does see the management pursuing "acquisitions and divestitures that improve long-term profitability".
Additionally, Credit Suisse analyst Vamil Divan upgraded Pfizer to Outperform from Neutral and raised his price target on the shares to $47 from $45. The analyst noted that Pfizer has been working through a dark period with extensive patent expirations that have hampered the company's ability to grow, but that period is now nearing an end. Further, the analyst believes the company's new product story with multiple marketed and pipeline assets may be underappreciated. In late morning trading, shares of Pfizer are higher by over 1.5% to $41.85.
TELSEY UPGRADES RALPH LAUREN, CUTS STEVE MADDEN: Telsey Advisory analyst Dana Telsey upgraded Ralph Lauren (RL) to Outperform from Market Perform with an unchanged price target of $155. The company's improving sales, combined with ongoing margin expansion, should bolster its earnings, Telsey said in a research note. Further, she views Ralph Lauren's valuation as "relatively attractive" at current share levels. The company is executing well against its strategic initiatives, added the analyst.
Telsey also downgraded Steven Madden (SHOO) to Market Perform from Outperform and lowered her price target for the shares to $37 from $40. While Steven Madden has a lot to like, external factors, such as tariffs and a wholesale channel that has a "more muted tone" entering 2019 as compared to 2018, may weigh on the stock price, Telsey told investors in a research note. The analyst's top pick in footwear remains Deckers Brands (DECK).
AMC CUT TO UNDERPERFORM AT IMPERIAL: Imperial Capital analyst David Miller downgraded AMC Networks (AMCX) to Underperform from In-Line and lowered his price target for the shares to $56 from $64. The analyst reduced his fiscal 2019 estimates for the company to reflect his expectation of lower scatter effects for The Walking Dead, as well as higher overall production costs. Miller believes now is the time to trim positions in AMC in favor of "other, higher-quality SMID names" in Media/Entertainment. AMC is now the only vertically integrated networks entity within that refuses to embrace a branded direct-to-consumer strategy, Miller noted. He pointed out that subscriber growth is already beginning to slow within the skinny bundle universe.
H&R BLOCK CUT TO SELL AT GOLDMAN: Goldman Sachs analyst George Tong downgraded H&R Block (HRB) to Sell from Neutral and lowered his price target for the shares to $22 from $27. The analyst said he sees "structural challenges" to the company's assisted business following tax reform in the U.S. The doubling of the standard deduction reduces the proportion of filers that need to itemize, Tong noted. This dynamic, coupled with the discontinuation of multiple promotions in 2019, will contribute to accelerated declines in H&R Block's assisted tax volumes, concluded the analyst.
WILLIAM BLAIR MAY HAVE UNCOVERED HR DEAL WITH ACCENTURE: William Blair analyst Justin Furby said his recent channel work lead him to believe that Workday (WDAY) recently closed a core human resources deal with Accenture (ACN). If correct, "this would be an important transaction for a number of reasons," Furby wrote in a research note titled "A Deal That Will Turn Heads; We Believe Workday Signed Accenture." First, Accenture is a massive company with close to 500,000 employees globally, the analyst said. Second, Accenture is a "massive influencer in enterprise technology buying cycles," Furby added. Third, the analyst said it is his understanding that Accenture signed a cloud HR deal with SAP (SAP) Employee Central in mid-2016, which he heard was "plagued with challenges." Furby concludes that if in fact Workday landed this deal, he has additional conviction in the company reported upside in Q4. Further, a deal of this type is bigger than any one quarter, and likely has ramifications for quarters to come, Furby noted. The analyst kept an Outperform rating on Workday. He also views the news as "another sign of SAP's weakening position in HR." In late morning trading, Workday is up 5.5% to $182.11.
GSK
+0.255 (+0.66%)
Pfizer
+0.62 (+1.50%)
Ralph Lauren
-0.25 (-0.21%)
Steven Madden
-0.14 (-0.43%)
Deckers Outdoor
+0.42 (+0.33%)
AMC Networks
+0.26 (+0.42%)
H&R Block
-1.875 (-7.35%)
Workday
+10.37 (+6.01%)
Accenture
+0.13 (+0.08%)
SAP
+0.57 (+0.56%)