Check out today's top analyst calls from around Wall Street, compiled by The Fly.
WEDBUSH BOOSTS CHIPOTLE TO OUTPERFORM: Wedbush analyst Nick Setyan upgradec Chipotle (CMG) to Outperform from Neutral and raised his price target on the shares to $980 from $780. As the industry transitions towards a larger mix of digital transactions, the analyst believes Chipotle is in a leading position to establish a digital moat. Setyan not only continues to see near-term momentum as management executes towards this transition, he believes Chipotle is poised to sustain outsized same-store sales and EPS growth in the medium- to long-term in an industry where a dearth of growth is likely to command an increasing premium.
BERNSTEIN CUTS HP INC. TO MARKET PERFORM: Bernstein analyst A.M. Sacconaghi, Jr. downgraded HP Inc. (HPQ) to Market Perform from Outperform, with a $20 price target. With supplies growth expected to be negative in both 2019 and 2020, and supplies now having declined at a 4% CAGR since 2011, the analyst worries that printing may be facing greater structural headwinds from the shift to digital and increased pressure from cloned/remanufactured supplies. In short, there is a higher likelihood the printing business is a "melting ice-cube" - despite myriad efforts by HP to improve the business - and the stock accordingly warrants a lower multiple, he contended.
SUSQUEHANNA DOUBLE UPGRADES NUTANIX: Susquehanna analyst Mehdi Hosseini issued a double-upgrade of Nutanix (NTNX) to Positive from Negative, saying that after a 60% correction in its stock price from early 2018 highs, the worst for the company's transition to a subscription model may be in the past. The analyst noted that the new model sets up an "attractive and predictable" recurring revenue and billing stream, also raising the price target on the stock to $45 from $23. Hosseini further stated that he is less concerned about the competitive dynamic and believes that Nutanix can "coexist" with VMware (VMW).
SUSQUEHANNA ALSO UPGRADES PURE STORAGE, NETAPP: Susquehanna analyst Mehdi Hosseini upgraded Pure Storage (PSTG) to Positive from Neutral and raised his price target for the shares to $25 from $16. The company's all-flash array opportunity remains in the early innings and underappreciated by investors, as there still is a "sea of disk/hybrid systems ready to be displaced," Hosseini said. Further, 5G-fueled growth in data and analytics "can add another layer of demand," added the analyst. As a result, he has confidence in sustained growth for Pure Storage through fiscal 2022.
Hosseini also upgraded NetApp (NTAP) to Positive from Neutral and raised his price target for the shares to $75 from $54. The company's all-flash array opportunity remains in the early innings, Hosseini noted. He believes NetApp's "sizable" installed base, an anticipated infrastructure buildout associated with 5G, and revenue contribution from Cloud Data Services will be catalysts for driving greater than 10% earnings growth through fiscal 2022.
MACQUARIE CUTS FOX CORP. TO UNDERPERFORM: Macquarie analyst Tim Nollen downgraded Fox Corp. (FOXA) to Underperform with a price target of $30. The analyst noted that the major deals for sports TV broadcasting rights are expected over the next few years, with NFL, MLB and NHL rights in the U.S. and Europe Champions League, Bundesliga, and EPL rights in Europe all up for renewal in 2021-2022. Nollen believes that the broadcast costs will likely escalate, adding to Fox Corp's margin pressure. The analyst added that there is still "intrinsic value" in the stock, but in the near term, he contended that its valuation is too high relative to peers.
DEUTSCHE BANK RAISES LAS VEGAS SANDS TO BUY: Deutsche Bank analyst Carlo Santarelli upgraded Las Vegas Sands (LVS) to Buy from Hold with a price target of $70. Bearish Macau sentiment has created an opportunistic entry point for medium to longer term investors, Santarelli wrote in a research note. The analyst believes the shares at current levels do not reflect Las Vegas Sands' "fortified" balance sheet and capital return story. Santarelli attributes Macau's "choppy" trends to geopolitical headwinds and he expects positive Macau gross gaming revenue comparisons in the near term.
Chipotle
+16.42 (+1.96%)
HP Inc.
-0.11 (-0.58%)
Nutanix
+1.64 (+6.84%)
Pure Storage
+0.495 (+2.89%)
NetApp
+2.06 (+3.96%)
Fox Corp.
-0.05 (-0.15%)
Las Vegas Sands
+1.45 (+2.58%)