Check out today's top analyst calls from around Wall Street, compiled by The Fly.
JPMORGAN CUTS BEYOND MEAT TO NEUTRAL: JPMorgan analyst Ken Goldman downgraded Beyond Meat (BYND) to Neutral from Overweight with a price target of $134, down from $138. The analyst sees a "more balanced risk/reward outlook" with the shares up 65% this month. With a "variety of optimistic news stories" baked in and the stock, it is prudent to head for the sideline once again, Goldman told investors in a research note. The analyst continues to believe Street estimates for 2020 and 2021 are too conservative, but with only 7% upside to his December 2020 price target, he no longer sees a "compelling valuation argument."
UBS INITIATES UBER WITH A BUY: UBS analyst Eric Sheridan initiated coverage of Uber Technologies (UBER) with a Buy rating and $56 price target. Uber has exposure to each of the key themes and investing opportunities in the sector, including scale, secular growth tailwinds, underlying asset value, and a management team focused on positive capital allocation, Sheridan told investors in a research note. The analyst sees opportunities for "market repair" and "multiple roads" for Uber to unlock asset value. In addition, the company's collection of global businesses "look poised to scale into the next large cap multi-sided marketplace," contended Sheridan. He sees a "compelling" risk/reward at current share levels.
BAIRD BOOSTS WELLS FARGO TO NEUTRAL: Baird analyst David George upgraded Wells Fargo (WFC) to Neutral from Underperform. the analyst noted its decline since his downgrade but since then has seen the company work on its regulatory issues, improve efficiency and infrastructure investments, and changed its leadership. He acknowledged turnarounds take time. George has a $50 price target on Wells Fargo shares.
B. RILEY UPGRADES IHEARTMEDIA TO BUY: B. Riley FBR analyst Zack Silver upgraded iHeartMedia (IHRT) to Buy from Neutral with a price target of $23, up from $17. The analyst sees a "compelling setup" for the shares over the next year. He increased his 2020 and long-term estimates to reflect iHeartMedia's "meaningful" restructuring activity that began on January 14. His analysis suggests the company will cut over $50M in costs this year, driving close to 1% of an incremental adjusted EBITDA margin in 2020. Further, in a best-case scenario, Liberty Media's (LMCA) and Sirius XM's (SIRI) recent interest in iHeartMedia could evolve into a formal offer this year, Silver noted. If nothing else, the interest "provides a sturdier floor" for iHeartMedia's equity value, relative to the rest of the group, added the analyst.
PIPER SANDLER CUTS 3D SYSTEMS TO NEUTRAL: Piper Sandler analyst Troy Jensen downgraded 3D Systems (DDD) to Neutral from Overweight with an unchanged price target of $12. The analyst sees limited upside from current valuations and limited 2020 catalysts after his Q4 reseller survey indicated "another struggle this quarter" for 3D Systems. However, consensus estimates are "somewhat achievable" as they reflect less than normal seasonality for Q4 and the company appears to be focused on cost cuts to improve profitability, Jensen said. The analyst, who noted 3D shares have appreciated nearly 30% since the start of the year, says 2020 does not appear to be a big year for new product introductions. He advised investors to wait for pullbacks before getting more constructive on 3D Systems shares.
BMO BOOSTS CANOPY GROWTH TO OUTPERFORM: BMO Capital analyst Tamy Chen upgraded Canopy Growth (CGC) to Outperform from Market Perform with a price target of C$40, up from C$25. Following the stock's notable sell-off last year, driven by a suboptimal recreational product mix and industry-wide challenges, there is potential upside to Street expectations for fiscal Q3, driven by the company's pivot into a product mix that should now be better aligned with demand, Chen said. Even a modest beat in Q3 "could begin to shift investor sentiment on the stock," the analyst added.
Beyond Meat
-4.4 (-3.53%)
Uber
-0.01 (-0.03%)
Wells Fargo
+0.7 (+1.49%)
Canopy Growth
+1.78 (+8.26%)
3D Systems
-0.01 (-0.09%)
iHeartMedia
+0.63 (+3.53%)