Check out today's top analyst calls from around Wall Street, compiled by The Fly.
SHIFT AWAY FROM CORPORATE NETWORK: Baird analyst Jonathan Ruykhaver downgraded Cisco Systems (CSCO) to Neutral from Outperform with an unchanged price target of $48. The analyst noted that the current COVID-driven environment could lead to a de-emphasis on the corporate network, which would be a headwind to Cisco. The shift to work from home highlights the benefits of shifting away from the corporate network, and recent signs of success from cloud infrastructure services companies validate the opportunity, Ruykhaver said. As a result, the analyst sees Cisco's risk/reward as more balanced at current share levels given "secular and macro concerns."
'FLOOD' OF RECENT POSITIVE DATA POINTS: Jefferies analyst Brent Thill upgraded eBay (EBAY) to Hold from Underperform with a price target of $52, up from $30. The analyst cited faster gross merchandise volume growth, "easy" comps, tailwinds to revenue from payments and ads, and a new CEO with an "impressive background" for the upgrade. Thill raised estimates across his e-commerce saying a "flood of recent positive data points" increases his conviction about the long-term tailwind to online consumption driven by the COVID-19 pandemic.
'MASSIVE' RECOVERY: Gordon Haskett analyst Chuck Grom upgraded Five Below (FIVE) to Buy from Hold with a $135 price target. The stage is set for "a massive recovery in both comps and store growth" following this quarter, contended Grom, who suspects the Street will "wisely return its focus to the company's long-term favorable model." However, the "upgrade does come with risks," the analyst cautioned, adding that he remains concerned that holiday same-store sales could potentially be a big hurdle given that foot traffic into shopping centers could remain subdued.
BUY ETSY: Jefferies analyst John Colantuoni upgraded Etsy (ETSY) to Buy from Hold with a price target of $110, up from $71. The analyst sees "home nesting dynamics" and repeat purchases from face mask sales driving higher long-term gross merchandise sales growth for Etsy. This additional demand boosts the company's importance to sellers and enhances its ability to pursue another fee increase, Colantuoni told investors in a research note. Further, the analyst believes the benefits of Offsite Ads are not adequately captured by consensus estimates
MOVING TO THE SIDELINES ON MICRON: Wedbush analyst Matt Bryson downgraded Micron (MU) to Neutral from Outperform, while raising his price target on the shares to $55 from $51. The analyst told investors that the believes the stock is fully valued, and noted that his industry checks suggest that forward demand/pricing conditions in the memory market are now more likely to deteriorate.
Cisco
-0.545 (-1.13%)
eBay
+0.07 (+0.14%)
Five Below
+9.505 (+9.11%)
Etsy
+4.25 (+5.56%)
Micron
-1.21 (-2.28%)