Check out today's top analyst calls from around Wall Street, compiled by The Fly.
VERTICAL GROUP DOUBLE UPGRADES U.S. STEEL TO BUY: Vertical Group analyst Gordon Johnson double upgraded U.S. Steel (X) to Buy from Sell after the company did the "unthinkable" and idled two U.S. plants and one in the EU. He sees the stock likely moving higher after the actions, he told investors. The analyst reminded investors that U.S. Steel has been a "poster-boy" for President Trump’s steel tariffs and its CEO has recently heralded Trump’s steel tariffs on China, Mexico and Canada. Johnson suspects other U.S. blast furnace steel mills such as AK Steel (AKS) or ArcelorMittal (MT) could idle capacity imminently as U.S. Steel has "effectively given everyone the greenlight to defy Trump and cut jobs to keep profits in the green."
RAYMOND JAMES CUT SUNPOWER TO MARKET PERFORM: Raymond James analyst Pavel Molchanov downgraded SunPower (SPWR) to Market Perform from Outperform on "lofty enough" valuation. The analyst said the company has a "solid position due to its status as an integrated player" with added support of energy giant Total, but after a 104% year-to-date stock price increase, believes that the valuation "appropriately reflects" SunPower's growth prospects.
SUNTRUST BOOSTS TRIPADVISOR TO BUY: SunTrust analyst Naved Khan upgraded TripAdvisor (TRIP) to Buy from Hold with an unchanged $60 price target. The analyst noted that the market valuation is placing more emphasis on the company's EBITDA multiple of the slower-growing Core business, even though its Experiences segment has generated annual growth of over 30% and now represents nearly a third of total sales. Khan added that the Experiences business segment has "reached critical mass" and, along with stabilization in Core, should lead to accelerating growth for overall TripAdvisor revenue in FY20 and beyond.
JPMORGAN CUTS ENERGIZER TO UNDERWEIGHT: JPMorgan analyst Andrea Teixeira downgraded Energizer Holdings (ENR) to Underweight from Neutral and lowered her price target for the shares to $36 from $45. Recent Nielsen data points to a "tough" sales outlook for the company, Teixeira said. While trends for the organic business appear solid, negative sell-through rates have worsened for the acquired battery business, added the analyst. She noted the latter are now declining at a high-teens rate, which she believes may pressure Energizer's ability to achieve guidance this fiscal year. Further, beyond the downside risk to earnings in 2019, the shares will be further pressured in 2020 by the overhang created by Spectrum Brand's (SPB) ~7.6% ownership of Energizer as the lock-up expires in January 2020, cautioned Teixeira.
JPMORGAN CALLS ALLERGAN SELLOFF 'OVERDONE': With Allergan (AGN) shares down 14% over the last 30 days, JPMorgan analyst Chris Schott called the recent selloff "very much overdone." Near-term "controversies" continue to overshadow a "still attractive fundamental story and asset base," Schott added. The analyst, while admitting there are few near-term catalysts beyond a potential split announcement, believes Allergan's valuation does not reflect its core portfolio of "durable, cash-pay aesthetics assets." Further, Schott sees Allergan's opioid exposure as "fairly limited" and the focus on this topic as "significantly overdone." He remained an Overweight rating on the shares with a $200 price target.
U.S. Steel
+0.9 (+6.17%)
SunPower
+0.03 (+0.30%)
TripAdvisor
+0.67 (+1.45%)
Energizer
-2.195 (-5.25%)
Bought by ABBV
+5.45 (+4.52%)