Check out today's top analyst calls from around Wall Street, compiled by The Fly.
MOVING TO SIDELINES ON GM: Deutsche Bank analyst Emmanuel Rosner downgraded General Motors (GM) to Hold from Buy with a $25 price target given the additional downside risk seen for U.S. autos stocks and significant liquidity concerns due to their prolonged production shutdown. Once there is more visibility on liquidity positions as production resumes, the investor debate could then shift to the outlook for global autos demand, the shape of a recovery, and stock valuations, said Rosner, whose base case is for a 10% global decline in 2020 auto production.
BUY LOWE'S: Loop Capital analyst Laura Champine upgraded Lowe's (LOW) to Buy from Hold and lowered her price target on the shares to $105 from $115. The analyst believes that the stock is attractively priced at 15-times her expected fiscal year 2020 earnings, even though she is cutting her expected fiscal year 2020 revenue to $71.98B from $73.95B and also cutting earnings per shares view to $5.71 from $6.52 to reflect the impact of the coming recession. Champine further noted that Lowe's will have its most difficult same-store sales comparison in the first quarter, though there may also be upside to her estimate "if only because" the company remained one of the few open retailers in much of the U.S.
'LESS AGGRESSIVE' INVESTMENT RATING: Barrington analyst James Goss downgraded ViacomCBS (VIAC) to Market Perform from Outperform. He sees the combination of a corporate integration process with varied impacts from the coronavirus as one that warrants "a less aggressive investment rating." While Direct to Consumer services are benefiting from social distancing, ad pricing has been pressured and delays or cancellations in sports programming, plus the soft economic environment, will put meaningful pressure on ad revenues, Goss stated.
NEAR-TERM HEADWINDS FOR SHOPIFY: Raymond James analyst Brian Peterson downgraded Shopify (SHOP) to Market Perform from Outperform, saying near-term headwinds could create a more challenging near-term narrative for the shares. Peterson told investors in a research note that he views the company’s guidance withdrawal as an indication that trends slowed dramatically in March, with potential for further pressure as the COVID-19 pandemic persists. Longer-term, the analyst expects Shopify will outgrow the broader e-commerce market.
VIDEO GAME NAMES INITIATED AT WELLS: Wells Fargo analyst Brian Fitzgerald initiated coverage of several names in the video game space, namely
General Motors
+2.08 (+10.66%)
Lowe's
+5.9 (+6.65%)
Use PARA
+1.97 (+14.14%)
Use PARA
+1.94 (+10.91%)
Shopify
+2.94 (+0.75%)
acquired by MSFT
-2.22 (-3.61%)
Take-Two
-2.94 (-2.42%)
Ubisoft
+ (+0.00%)
Zynga
-0.12 (-1.76%)
Electronic Arts
-3.615 (-3.39%)