Check out today's top analyst calls from around Wall Street, compiled by The Fly.
REMDESIVIR COMMERCIAL PROSPECTS: SunTrust analyst Robyn Karnauskas upgraded Gilead (GILD) to Hold from Sell with a price target of $73, up from $70, following her discussion with the company’s management. The analyst noted that she now sees potential commercial sales for remdesivir in the near-term as the drug is still the only approved one to treat hospitalized COVID-19 patients while also assuming that a resurgence of the pandemic could come in early 2021. Karnauskas models global remdesivir sales of about $1.1B, $3.2B, and $2.5B in 2020, 2021, and 2022 respectively, adding that sales from every 500K additional treatment courses adds about $1 per share to her DCF model on Gilead stock.
KEY PRODUCTS IMPROVED OUTLOOK: Wells Fargo analyst Jim Birchenough upgraded Regeneron (REGN) to Overweight from Equal Weight with a price target of $734, up from $559, following a review of recent progress and on an improved outlook for key products EYLEA, DUPIXENT and LIBTAYO plus earlier pipeline progress. Birchenough told investors in a research note that he expects stronger, more sustainable EYLEA growth on expanded label in diabetic eye disease and competitor's BEOVU safety concerns, DUPIXENT growth on new indications and LIBTAYO growth on front-line NSCLC success and as a backbone for proprietary IO combinations. With additional focus on prospects for antibody success for COVID19, the analyst believes Regeneron is well-positioned following earlier success against Ebola.
STOCK ATTRACTIVELY VALUED: JPMorgan analyst Paul Coster upgraded HP Enterprise (HPE) to Neutral from Underweight with an unchanged price target of $11. The analyst cited valuation for the upgrade with the stock down 42% year-to-date. Shares of HP Enterprise now look attractively valued assuming recovery from the disruption caused by COVID-19, Coster contended. Overall, he believes the risk/reward looks more balanced at current share levels.
BUY SOUTHWEST: UBS analyst Myles Walton upgraded Southwest (LUV) to Buy from Neutral with a price target of $41, up from $37. The path for a domestic travel recovery is clearer, while the company's cash burn reduction removes some of the tail risk, the analyst argued. Walton added that load factors of 40% exiting the second quarter would be an "encouraging sign" for Southwest while its balance sheet position relative to other airlines is "remarkably clean."
UPGRADE AT CRAIG-HALLUM, DOWNGRADE AT CREDIT SUISSE: Craig-Hallum analyst Jeremy Hamblin upgraded Ollie's Bargain Outlet (OLLI) to Buy from Hold with a price target of $104, up from $45. The analyst believes the retail stock universe has separated into clear winners and losers and he views Ollie's Bargain Outlet as a "clear winner" that will benefit from "the carnage among struggling retailers and vendors looking to place goods with strong partners." Further, he noted that store checks indicate the company saw a significant uptick in results by mid-April to return to positive territory that Hamblin believes has continued to start second quarter.
Meanwhile, Credit Suisse analyst Judah Frommer downgraded Ollie's Bargain Outlet to Neutral from Outperform with a price target of $90, up from $55, ahead of the company's first quarter results. The analyst raised estimates for the company, saying he likely underestimated the near-term benefit that CARES Act stimulus is having on the company's core customer's propensity to spend and its ability to turn comps back to positive in the second quarter. However, there is potential for a pullback on spending as stimulus wanes and comps settle into a low-single-digit range longer-term, making the risk/reward more balanced at current share levels, Frommer told investors in a research note of his own. He also noted that shares of Ollie's are up 125% since the company reported fourth quarter results.
Gilead
-0.31 (-0.42%)
Regeneron
-27.94 (-4.90%)
HP Enterprise
+0.36 (+3.93%)
Southwest
+2.81 (+9.73%)
Ollie's Bargain Outlet
+3.57 (+4.17%)