Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BETTER POSITION AMID COVID-19: Credit Suisse analyst Dan Levy upgraded Tesla (TSLA) to Neutral from Underperform with a price target of $580, up from $415. Amid the COVID-19 disruption, the analyst believes Tesla "competitively has more edge" in the transition to electric vehicles. The coronavirus pandemic will make it more difficult for legacy automakers to balance the long-term shift to electric vehicle in the face of near-term cycle disruption, he contended. However, Levy believes that in the near-term, Tesla may face risks with demand expected to soften in the second quarter and potential supply shortages if the shutdown lasts until June.
IN-STORE SPENDING RELIANCE: UBS analyst Eric Wasserstrom downgraded Square (SQ) to Neutral from Buy with an unchanged price target of $54. The analyst no longer has conviction that Square's investments in 2020 will drive a reacceleration of revenue growth and margin expansion in 2021. Further, in the near-term, there remains downside risk to estimates given's Square orientation toward in-store spending, Wasserstrom contended. As such, the analyst sees limited upside potential and a balanced risk/reward profile for the shares. The analyst also upgraded FIS (FIS) to Buy from Neutral with an unchanged $146 price target.
MOVING TO THE SIDELINES ON ETSY: BTIG analyst Marvin Fong downgraded Etsy (ETSY) to Neutral from Buy with a $52 price target. Noted that the shares have achieved his former $52 price target, the analyst told investors that he is concerned that actual job losses could curtail spending more seriously than March trends would indicate when many people were still not yet officially laid off. Wong also believes March's "laudable" performance will be tough to sustain over the next several months, and perhaps quarters.
BUY ZOOM VIDEO: Cantor Fitzgerald analyst Drew Kootman initiated coverage of Zoom Video (ZM) an Overweight rating and $150 price target. Kootman told investors in a research note that he believes the current COVID-19 environment presents significant upside potential not currently assumed in the stock. The analyst expects the virus to provide upside to estimates and for the platform and its products to drive increased market penetration and future cross-selling opportunities and expects these impacts to continue to drive multiple expansion.
LENDERS NEGATIVELY IMPACTED BY PANDEMIC: Maxim analyst Michael Diana downgraded LendingClub (LC), Enova International (ENVA), and Elevate Credit (ELVT) to Hold from Buy as part of a broader research note on the online lender sector. The analyst states that all lenders have been negatively impacted by borrowers having been weakened financially by the outbreak of COVID-19, though LendingClub and On Deck Capital (ONDK) are especially vulnerable given their focus on non-prime consumers. Diana still retains his Buy rating on (PAYS) and (USIO) given that these names offer niches with a focus in the healthcare space.
Tesla
+58.55 (+8.99%)
Block
+1.53 (+2.57%)
Etsy
+1.38 (+2.49%)
Zoom Video
+6.195 (+4.56%)
FIS
-0.245 (-0.20%)
LendingClub
+0.02 (+0.23%)
Enova International
-0.3 (-2.07%)
Elevate Credit
+0.05 (+3.55%)
Acquired by ENVA
+0.13 (+11.02%)
Paysign
+0.4 (+6.06%)
Usio
+ (+0.00%)