Check out today's top analyst calls from around Wall Street, compiled by The Fly.
GOLDMAN SACHS BOOSTS CITI TO BUY: Goldman Sachs analyst Richard Ramsden upgraded Citi (C) to Buy from Neutral and raised his price target for the shares to $77 from $71. Ramsden sees a "realistic path" to a 13% return on tangible common equity in 2020 for Citi, or 100 basis points ahead of market expectations, which he notes is not contingent on either higher interest rates or strengthening global growth trends. While there is a risk that Citi may back away from its 13.5%-plus ROTCE target, neither consensus expectations for 2020 or the current valuation discount achieving the target, Ramsden said. The analyst believes the market is "overly pessimistic" on Citi's revenue growth inflection, targeted expense savings, and outlook for credit costs. As a result, he sees 21% upside potential from current share levels.
GUGGENHEIM UPGRADES COMCAST TO BUY: Guggenheim analyst Mike McCormack upgraded Comcast (CMCSA) to Buy from Neutral, contending that the company's successful pivot from primarily a video distributor to a connectivity company "has been fairly smooth." The results in Q1 showed that multiple-system operators and cable operators are outgaining telecom rivals in the broadband space meaningfully, said McCormack, who added that he expects continued broadband gains. Additionally, NBCU keeps operating at "a very high level" and the Wireless business is showing steady gains, according to McCormack, who raised his price target on Comcast shares to $52 from $39.
UBS CUTS VERIZON TO NEUTRAL: UBS analyst John Hodulik downgraded Verizon Communications (VZ) to Neutral from Buy with an unchanged price target of $59. With the valuation back in-line with historical levels and more difficult comps ahead, Verizon's risk/reward is more balanced at current share levels, Hodulik told investors in a research note. The analyst, however, continues to believe the company is well positioned as a defensive investment with low-single-digit core growth and a sustainable yield. He also expects wireless fundamentals to remain "healthy."
CREDIT SUISSE LOWERS KRAFT HEINZ TARGET: Credit Suisse analyst Robert Moskow lowered his price target for Kraft Heinz (KHC) to $26 from $33 on below management guidance due to the possibility that the SEC's investigation into the company will continue to reveal breakdowns in its internal controls and negatively impact the forward outlook. The analyst believes there is also "significant uncertainty" related to potential dilution from divestitures and reinvestment needs. Moskow reiterated an Underperform rating on the stock.
STEPHENS BOOSTS ZYNGA TO OVERWEIGHT: Stephens analyst Jeff Cohen upgraded Zynga (ZNGA) to Overweight from Equal Weight, stating that the continued acceleration of recent acquisitions and the fact that Social Casino could be poised for a second half re-acceleration give him additional confidence in Zynga's live service portfolio. His sum-of-the-parts analysis indicates that at current prices investors are "getting a nearly free call option on the company's robust new game slate and likely accretive M&A," said Cohen, who raised his price target on Zynga shares to $8.25 from $6.50. His industry contacts indicate that Zynga's reputation as a place where game creators want to go work has "vastly improved," Cohen added.
Citi
+0.38 (+0.60%)
Comcast
-0.28 (-0.67%)
Comcast
+ (+0.00%)
Verizon
-1.59 (-2.73%)
Kraft Heinz
-0.87 (-3.08%)
Zynga
+0.07 (+1.13%)