Check out today's top analyst calls from around Wall Street, compiled by The Fly.
CENTURYLINK CUT TO SELL AT CITI: Citi analyst Michael Rollins downgraded CenturyLink (CTL) to Sell from Neutral and cut his price target for the shares to $11 from $19. The analyst expects headwinds on revenue and cash flow, a possible dividend cut, and the likelihood for capex upgrades to lead to further multiple contraction. CenturyLink will face a "growing tug of war" on cash flow beginning in 2019, which will result in a dividend payout level "well above its previously articulated comfort zone," Rollins wrote in a research note. The analyst forecasts a 50% dividend cut in 2020 for CenturyLink. Further, he believes a sum-of-parts approach "is not compelling" given that the heritage CenturyLink operations are experiencing mid-single digit revenue declines and Level 3 hasn't grown revenue over the last two years.
BOOKING HOLDINGS UPGRADES TO BUY AT DEUTSCHE: Deutsche Bank analyst Lloyd Walmsley upgraded Booking Holdings (BKNG) to Buy from Hold and raised his price target for the shares to $2,370 from $2,150. Booking's room night growth can accelerate in 2019 as the company "leans back into marketing channels," and this can drive multiple expansion, Walmsley told investors in a research note. The analyst has cautious on issues including maturation of online leisure penetration, Google Travel, and competition. However, much of this risk now seems fully understood by investors and a re-acceleration in room night growth "could help mute this overhang in the near-term," said the analyst.
KRAFT HEINZ CUT TO HOLD AT DEUTSCHE: Deutsche Bank analyst Rob Dickerson downgraded Kraft Heinz (KHC) to Hold from Buy and lowered his price target for the shares to $52 from $58. The analyst's analysis shows store brands continue to increase distribution points and take share in the majority of Kraft Heinz's largest categories. This is happening while Kraft Heinz has increased its promotional activity and further reduced price gaps, Dickerson wrote in a research note. He believes management is taking the appropriate steps by aligning its objectives and improving its relations with customers in order to "rebalance the retail ecosystem." The analyst, however, finds it prudent to "let the dust settle on the base business before becoming more constructive once again."
REGENXBIO UPGRADED TO STRONG BUY AT RAYMOND JAMES: Raymond James analyst Reni Benjamin upgraded Regenxbio (RGNX) to Strong Buy from Outperform, stating that his recent talks with management gave him added information on RGX-314 in patients with wet age-related macular degeneration and an update on the company's other gene therapy programs. He believes the recent pullback in shares presents an attractive opportunity "for risk-tolerant investors" given that the company has four wholly owned assets "poised to deliver data in 2019," Benjamin said. He has a $94 price target on Regenxbio shares.
CRONOS CUT TO HOLD ON VALUATION: GMP Securities analyst Martin Landry downgraded Cronos Group (CRON) to Hold from Buy with a C$24 price target, citing valuation. In a research note to investors, Landry noted that shares reached an all-time high of $32.95, surging about 110% year-to-date on no material news. He says his downgrade is not based on any operational issues, as he is a believer in Cronos' "bright" outlook and has no concerns on the company's expansion plans or the execution abilities of its management team, but says shares "need a breather" given the significant appreciation in recent weeks.
CenturyLink
-0.38 (-2.53%)
Booking Holdings
+45.54 (+2.45%)
Regenxbio
+2.21 (+4.87%)
Kraft Heinz
+0.13 (+0.27%)
Cronos Group
-0.26 (-1.12%)