Check out today's top analyst calls from around Wall Street, compiled by The Fly.
APPLE PRICE TARGETS RAISED AFTER Q1 EARNINGS: JPMorgan analyst Samik Chatterjee raised his price target for Apple to $235 from $230, saying he expects investor sentiment to further improve on the company's revenue upside from better price/volume balance as iPhone promotions take hold. The key takeaway from last night's results for investors is the success of the promotional initiatives and its longer term implications to both the Phone shipment outlook and installed base growth, Chatterjee said.
Canaccord analyst T. Michael Walkley raised his price target for Apple to $245 to $230, saying that, given the continued near-term soft sales trends for the latest lineup of iPhones, he forecasts a 12% year-over-year unit decline in calendar 2019 iPhone sales and anticipates 6% unit growth in calendar 2020 based on an increasing installed base driving higher iPhone sales including those from the anticipated introduction of the 5G iPhone next fall.
Morgan Stanley analyst Katy Huberty said "the real surprise" in Apple's report was the better than expected June quarter guidance. She believes the guidance speaks to iPhone pricing cuts, stimulus in China and improved consumer confidence from advancing U.S./China trade talks all contributing to an improved iPhone trajectory. Following the report and guidance, Huberty raised her FY19 and FY20 revenue and EPS estimates "slightly" and increased her price target on Apple shares to $240 from $234.
Wedbush analyst Daniel Ives raised his price target for Apple to $235 from $225 to reflect his growing confidence in the company's ability to monetize its "unparalleled installed base" on both the iPhone and services front over the next 12-18 months. While China remains a wild card in terms of how quickly iPhone demand will ramp in this key region, Ives believes "the stage is now set for [CEO Tim} Cook to put his finishing touches" on what will be a defining comeback and chapter in his legacy and Apple's future heading into 2020 and beyond.
Maxim analyst Nehal Chokshi raised his price target on Apple to $217 after its Q2 results, saying the company's tradeoff for recurring product and Services gross profit per user is a "modest net positive."
MCDONALD'S DOWNGRADED AT LONGBOW: Longbow analyst Alton Stump downgraded McDonald's (MCD) to Neutral from Buy. While the company's "impressive" U.S. comp growth in Q1 increases his confidence in comps over the last three quarters of the year, he also believes the stock reflects his favorable view with shares trading near his prior price target of $200. Stump added that he believes the strong U.S. comparable sales growth likely means the company gained share from the likes of Dunkin' Brands (DNKN), Burger King (QSR) and Wendy's (WEN) in Q1.
Meanwhile, several analysts raised their respective price targets on McDonald's. BTIG analyst Peter Saleh raised his price target on McDonald's to $220, saying the company's menu strategy shift has boosted comps. The analyst expects the increased menu focus on "bundles and full price items" -- away from deep discounts -- to drive higher U.S. average check for the next couple of quarters. SunTrust analyst Jake Bartlett raised his price target on McDonald's to $230, saying the stock should see continued upside given its "broad-based SSS strength." BMO Capital analyst Andrew Strelzik raised his price target on McDonald's to $210, rolling out his model to 2020 and noting that the stock can reach $250 as the management "realizes its free cash flow potential" beyond the near term. The analyst said that while Q1 earnings miss saw stronger comps offset by higher commodity inflation, he also pointed to the 6% growth in global system sales in the quarter tempering investor concerns about the global economy. Stephens analyst Will Slabaugh raised his price target on McDonald's shares to $220 from $210, noting the acceleration in the U.S. same-store sales growth and the fact that he believes its International segment is "likely in the best place since the recession" despite Europe's macro uncertainty.
DISNEY PRICE TARGET RAISED AT BARCLAYS: Barclays analyst Kannan Venkateshwar raised his price target for Disney to $150 and kept an Overweight rating on the shares, saying that while the stock has outperformed since the company's investor day, there remains "meaningful uncertainty" around earnings expectations. The analyst continues to like the story, but he admits that sustaining investor optimism will need visibility around direct-to-consumer subscriber trends, which he notes will materialize only in 2020 for Disney+. As such, the stock could consolidate around present levels near term, the analyst said.
NXP SEMICONDUCTORS ADDED TO US 1 LIST AT BOFA/MERRILL: BofA Merrill Lynch analyst Vivek Arya added NXP Semiconductors to the US 1 List following the Q1 beat and raise. Arya attributed strength to strong design wins in autos/IoT, combined with mobile, and 5G markets and notes the margin recovery is on track and management continues to buy back shares aggressively. The analyst reiterated his Buy rating on NXP Semiconductors and raised his price target to $125 from $105.
CORNING UPGRADED TO BUY AT BOFA: BofA Merrill Lynch analyst Wamsi Mohan upgraded Corning to Buy from Neutral and raised his price target to $40 from $38 saying the pullback in shares provides a buying opportunity. Mohan said Corning's growth profile has improved and expects gross profits to scale with near-term investments, and operating leverage to drive incremental margin expansion. Further, the analyst believes glass pricing could surprise to the upside, sees lower capital intensity, and expects the mid-June investor day to provide a positive update.
Apple
+11.07 (+5.52%)
Disney
+1.09 (+0.80%)
McDonald's
-1.56 (-0.79%)
Corning
-0.17 (-0.53%)
NXP Semiconductors
+1.14 (+1.08%)
Acquired by Inspire Brands
+0.14 (+0.19%)
Restaurant Brands
-0.45 (-0.69%)
Wendy's
+ (+0.00%)