Check out today's top analyst calls from around Wall Street, compiled by The Fly.
JPMORGAN BOOSTS ESTEE LAUDER TO OVERWEIGHT: JPMorgan analyst Andrea Teixeira upgraded Estee Lauder (EL) to Overweight from Neutral and raised her price target for the shares to $175 from $160. The analyst left the company's analyst day more confident that both its fiscal 2019 and long term sales growth algorithm and earnings goals are "not only achievable but actually conservative." Estee is seeing continued strength in China despite difficult compares and has "ample runway" for further expansion ahead in Emerging Markets and travel, Teixeira said. Further, innovation for Clinique should sustain double digits skincare growth in the developed markets and mitigate low-single-digit growth in makeup, added the analyst. She believes concerns over Estee Lauder's growth deceleration are overdone.
PIVOTAL CUTS UNITED FOODS TO SELL: Pivotal Research analyst Ajay Jain downgraded United Natural Foods (UNFI) to Sell from Hold and cut his price target for the shares to $8 from $14. The potential for more disappointment remains following "continued operational setbacks" related to the Supervalu acquisition, Jain told investors in a research note. Further, in addition to a "rapidly declining" earnings outlook, United Natural's leverage remains very high at 6.2 times EBITDA, the analyst added. He pointed out that the company's latest guidance cut is the equivalent of $63M in fiscal EBITDA based on the mid-point of the revised range.
RBC CUTS AB INBEV TO SECTOR PERFORM FROM TOP PICK: RBC Capital analyst James Jones downgraded AB InBev (BUD) to Sector Perform from Top Pick with a price target of EUR 75. Without further "transformational" acquisitions," AB InBev is unlikely to see incremental margin growth, Jones told investors in a research note. And given the combination of high leverage and likely antitrust objections, the analyst does not see a transformational deal coming for the company. Further, he noted the shares are close to his price target after rallying 10% since the February 28 earnings report. In late morning trading, shares of AB Inbev are down almost 2% to $80.50.
CREDIT SUISSE INITIATES HOUSEHOLD PRODUCTS, BEVERAGES: Credit Suisse analyst Kaumil Gajrawala rolled out coverage last night on eight names in the Household Products & Beverages space. The analyst's ratings consist of three Outperforms, two Underperforms, and three Neutrals. His top pick is Constellation Brands (STZ), which he started with an Outperform rating and $230 price target. The company offers "predictable" high-single digit revenue growth with a valuation that is "well below slower growth peers," Gajrawala tells investors in a research note. His other Outperform ratings are on Monster Beverage (MNST) and Clorox (CLX). The analyst has a $78 price target on Monster, noting it is the fastest growing company in his coverage "with runway for continued growth." He has a $172 price target on Clorox saying the company's "unique" portfolio position justifies a premium valuation. Gajrawala's Neutral rated names are Church & Dwight (CHD), Procter & Gamble (PG) and Coca-Cola (KO). His two Underperforms are PepsiCo (PEP) and Colgate-Palmolive (CL). PepsiCo has a $100 price target as the analyst sees limited upside amid the company's "stepped-up" investment years. Colgate-Palmolive, Gajrawala's less favorite name, has a $55 price target. The company's out-year margins are at risk as it reinvests to address several years of slowing growth and sales declines, Gajrawala contended.
PIPER JAFFRAY SEES STRONG Q1 FOR NETFLIX: Piper Jaffray analyst Michael Olson says his analysis of Netflix (NFLX) search trends points to a strong Q1, with potential upside for both international and domestic subscribers. Consensus calls for 9.1% year-over-year domestic sub growth in Q1 and the search index points to 12.6% growth, Olson tells investors in a research note. For international, Q1 consensus calls for 37.9% year-over-year sub growth and the index points to 51.3%, the analyst adds. The index is "directionally positive" and shows a high likelihood of a strong Q1 for Netflix sub adds, writes Olson. He maintains an Overweight rating on Netflix shares with a $440 price target.
Estee Lauder
+0.45 (+0.29%)
United Natural Foods
+0.19 (+1.38%)
AB InBev
-1.59 (-1.94%)
Constellation Brands
+0.64 (+0.39%)
Monster Beverage
+0.44 (+0.71%)
Clorox
+0.67 (+0.43%)
Church & Dwight
+0.33 (+0.50%)
Procter & Gamble
-0.4 (-0.40%)
Coca-Cola
-0.15 (-0.33%)
PepsiCo
-0.55 (-0.47%)
Colgate-Palmolive
-0.62 (-0.94%)
Netflix
-4.58 (-1.27%)