Check out today's top analyst calls from around Wall Street, compiled by The Fly.
TESLA BOOSTED TO BUY AT ROTH CAPITAL: Roth Capital analyst Craig Irwin upgraded Tesla (TSLA) to Buy from Neutral, with a $238 price target, after meetings with major Chinese EV producers and relevant supply chain participants. While the analyst believes rising battery costs are likely to be a 2019 margin headwind, demand from China will likely be stronger than most anticipate, reducing the potential for lowered 2019 unit guidance. China Model 3 deliveries of 2,324 units in May, after the initial 259 deliveries in April, suggest a "credible" second half of 2019 ramp, Irwin contended.
ANALOG DEVICES DOUBLE UPGRADED AT GOLDMAN: Goldman Sachs analyst Toshiya Hari double upgraded Analog Devices (ADI) to Buy from Sell and raised his price target for the shares to $114 from $101. The analyst, who admitted his Sell thesis did not work, is turning more bullish on the company as he believes analog units are tracking below trend. This indicates that the end of the cyclical correction may be approaching, barring a prolonged economic recession, Hari said. Further, Analog Devices has exposure to "multiple idiosyncratic revenue drivers," including Comms Infrastructure and Automotive, added the analyst. He sees upside to consensus estimates and expects an improved growth outlook to drive the company's relative multiples higher.
SIRIUS BOOSTED TO OUTPERFORM AT CREDIT SUISSE: Credit Suisse analyst Brian Russo upgraded Sirius XM Holdings (SIRI) to Outperform from Neutral with a $7 price target. The stock decline has brought an attractive risk/reward opportunity, Russo told investors in a research note. Consensus estimates for EBITDA and free cash flow have fallen to roughly in-line with the company's 2019 guidance, which is rare given management's long track record of beating their outlook, added the analyst. Russo now sees upside to estimates given Sirius XM's "solid" operating trends and "powerful" stock buyback.
LA-Z-BOY CUT TO NEUTRAL AT SIDOTI: Sidoti analyst Anthony Lebiedzinski downgraded La-Z-Boy (LZB) to Neutral from Buy and lowered his price target on the shares to $35 from $38 after the company pre-announced FY19 sales and earnings that were below consensus estimates. The Trump administration's threats for tariffs on goods imported from Mexico adds another layer of risk given La-Z-Boy's reliance on cut-and-sew kits from a Mexico facility and Joybird's manufacturing plant in Tijuana, Lebiedzinski said.
PIPER SAYS CANNABIS COULD BECOME TOP 2020 ELECTION ISSUE: After Washington D.C. lobbyist Michael Esposito, who also works closely with President Trump's administration, spoke at his firm's conference, Piper Jaffray analyst Michael Lavery believes cannabis regulation could become a top 2020 election issue. By supporting cannabis, Trump may be able to incrementally broaden his appeal with swing voters without alienating his base, Esposito said. Though Trump has indicated his willingness to support the STATES Act, his enthusiasm could depend on whether or not Elizabeth Warren, author of the bill, is his opponent, added the analyst. While Senate Majority Leader Mitch McConnell is a roadblock for legislation in the Senate, Trump could use executive orders between now and the election to show support for the industry, potentially relating to cannabis banking or medical research, said Lavery. The analyst has Overweight ratings on both Canopy Growth (CGC) and Tilray (TLRY). Other names in the space include Aphria (APHA), Aurora Cannabis (ACB), CV Sciences (CVSI), CannTrust Holdings (CNTTF), Cronos Group (CRON), General Cannabis (CANN), India Globalization Capital (IGC), MediPharm Labs (MLCPF) and Zynerba (ZYNE).
Tesla
+10.29 (+5.03%)
Analog Devices
+5.74 (+5.70%)
Sirius XM
+0.08 (+1.50%)
La-Z-Boy
+1.59 (+5.41%)
Canopy Growth
+1.4 (+3.32%)
Tilray
+4.38 (+11.27%)
APHA
+
Aurora Cannabis
+0.16 (+2.09%)
CV Sciences
+ (+0.00%)
CNTTF
+
Cronos Group
+0.9 (+5.65%)
Trees Corporation
+ (+0.00%)
IGC Pharma
+0.022 (+2.42%)
Changed to MEDIF
+ (+0.00%)
ZYNE
+