Check out today's top analyst calls from around Wall Street, compiled by The Fly.
STRONGER BOUNCE-BACK: Wedbush analyst Seth Basham upgraded CarMax (KMX) to Outperform from Neutral with a price target of $90, up from $70. The analyst anticipates a stronger bounce-back than previously expected and believes that the company is well positioned to capture market share coming out of the COVID-19 pandemic period. His proprietary sales tracker indicates that CarMax used unit comps improved through April, and as states remove stay-at-home mandates, he expects further improvement in May. Looking forward to the balance of 2020, Basham thinks consumers' preference for private transportation over public transportation should help further reduce comp pressure, although this preference will be partially offset by consumers inclinations to drive less if work-from-home and certain social distancing measures remain in effect.
MOVING TO THE SIDELINES: UBS analyst John Rigby downgraded Chevron (CVX) to Neutral from Buy with an unchanged $95 price target. The analyst noted that the stock price has nearly reached his target, while shares have outperformed relative to the industry with "only" a 22% year-to-date decline versus a 38% decline for global major peers. Rigby added that Chevron performance speaks to its "leading reputation for capital discipline and the highly resilient, yet flexible financial model" while anticipating oil prices to recover to $47.50/brl in 2021.
COVID OPPORTUNITY SKEPTICISM: JPMorgan analyst Tycho Peterson downgraded Quidel (QDEL) to Underweight from Neutral with a price target of $158, up from $120. With the shares trading at a 34.6 times 2021 price-to-earnings ratio, Quidel's valuation more than factors in a best-case scenario, Peterson told investors in a research note. The analyst does not rule out the company's COVID-19 antigen testing opportunity, but believes it may be overstated due to the "nascent" market, scale-up of competitive tests and the potential for a vaccine in 12-18 months. This leaves him skeptical of the opportunity implied by the stock move.
RANGE-BOUND: Bank of America analyst Ross Gilardi downgraded Stanley Black & Decker (SWK) to Neutral from Buy with a $120 price target. While still down 31% year-to-date, the stock has bounced about 58% from its March 23rd lows and should be range-bound from here, the analyst noted. Gilardi added that his price target assumes a valuation of enterprise value 11-times his expected fiscal year 2020 EBITDA, which is in line with the company's peers.
'FAR MORE' DIVERSIFIED STORY: JPMorgan analyst Chris Schott upgraded AbbVie (ABBV) to Overweight from Neutral with a price target of $105, up from $85, following a period of restriction. The analyst sees the company emerging as a "far more diversified story" post the Allergan acquisition with two major new launches, Skyrizi and Rinvoq, and Humira biosimilar risk appearing "increasingly manageable." With the stock trading at "only" 8.5 times 2020 earnings estimates, "multiple" potential sources of upside to estimates and a 5.5% dividend yield, there is a "meaningful upside" case for the shares, Schott contended. The analyst calls AbbVie a top idea.
CarMax
+2.35 (+3.09%)
Chevron
+0.11 (+0.12%)
QuidelOrtho
-10.14 (-4.85%)
Stanley Black & Decker
-1.215 (-1.07%)
AbbVie
+1.71 (+1.94%)