Check out today's top analyst calls from around Wall Street, compiled by The Fly.
PANDEMIC EXECUTION: KeyBanc analyst Eric Gonzalez upgraded Dunkin' Brands (DNKN) to Overweight from Sector Weight with a $78 price target. Despite 60% of sales coming from breakfast, a "disadvantaged daypart" during COVID-19, Dunkin has executed well during the pandemic, providing franchisee assistance while leveraging its digital capabilities to stabilize trends, Gonzalez told investors in a research note. The analyst believes these efforts should drive momentum in the short term as key markets reopen and over the medium term with the help of national advertising and digital loyalty. Dunkin's valuation discount to peers should correct over time as the company "restores its growth algorithm," he added.
MOVING TO SIDELINES: Atlantic Equities analyst Kunaal Malde downgraded American Express (AXP) to Neutral from Overweight with a $110 price target with the stock having rallied about 60% from its lows. Volumes have begun to recover and large credit loss reserve builds could be contained in the first half of the year, but a slow recovery in travel and credit card volumes could present a "wide" range of potential outcomes for AmEx, Malde contended.
POSITIVE INVESTOR SENTIMENT: Seaport Global analyst Richard Safran initiated coverage of Boeing (BA) with a Buy rating and $277 price target. While Wall Street's sentiment on Boeing remains Neutral, Safran contended that investor sentiment is getting more positive and noted that history shows Boeing generally outperforming early cycle industrials in an economic recovery. There are risks ahead, but he thinks the worst is now being priced in, absent another COVID-19 wave. The analyst also does not believe the stock currently reflects his view that Boeing's "normal" free cash flow could peak at greater than $18 per share or higher.
LEISURE REBOUND 'IS REAL': Bank of America analyst Andrew Didora upgraded JetBlue (JBLU) to Neutral from Underperform and Alaska Air (ALK) to Buy from Neutral. The analyst argued that the recent recovery seems in line with his forecasts as his base case has revenues recovering from down 90% early on to down 55% in the second half of 2020. The "leisure rebound is real," he contended. However, Didora believes the "true catalyst for the group" will be a return of corporate travel, which will take time.
BUY ZILLOW: Needham analyst Brad Erickson upgraded Zillow Group (ZG) to Buy from Hold with an $80 price target. The analyst believes COVID-19's "unique effects" on real estate carry underappreciated longer-term benefits for Zillow. The pandemic increased the average American's willingness to be introduced to a realtor off the internet and is driving realtor consolidation, he added. Erickson's most recent realtor checks "came back surprisingly positive" with 15%-20% of realtors calling out wanting to spend more through this period likely as a function of Zillow's utility of finding actual buyers going up. Further, the analyst believes Flex is going to be additive to the company's growth.
Acquired by Inspire Brands
+1.92 (+2.80%)
American Express
+3.69 (+3.36%)
Boeing
+22.59 (+11.01%)
JetBlue
+1.2 (+8.76%)
Alaska Air
+4.84 (+11.33%)
Zillow Group
+3.53 (+5.97%)