Check out today's top analyst calls from around Wall Street, compiled by The Fly.
INTEL 'STAGING COMEBACK': KeyBanc analyst Weston Twigg upgraded Intel (INTC) to Overweight from Sector Weight with an $82 price target. The analyst views Intel as the best-positioned company to take advantage of the next wave of compute, beyond PCs, phones, and tablets. The company is aggressively tackling new markets, quickly launching products on 10nm, and unifying chips, software, and developers, he contended.
ACCELERATING TRENDS: Piper Sandler analyst Brent Bracelin upgraded Shopify (SHOP) to Overweight from Neutral with a price target of $843, up from $773, and Twilio (TWLO) to Overweight from Neutral, with a price target of $225, up from $135. "Data-driven insights" point to accelerating trends in April and May, Bracelin told investors in a research note. The analyst also has increasing conviction that digital commerce penetration rates at 15% today could double or even triple in a post COVID-19 world by 2030.
Leveraging a "critical footprint" as the global retail operating system for 1M-plus merchants today with an expanding product offering, Shopify is one of the best positioned digital commerce beneficiaries for the next decade, Bracelin contended. Further, he believes the company's revenue is poised to quadruple to $12B by 2025. Regarding Twilio, the analyst believes the company is one of the best positioned digital beneficiaries for the next decade. Bracelin thinks "digital tailwinds" could help triple the company's revenue to $5B by 2025.
BUY SIX FLAGS, CEDAR FAIR: B. Riley FBR analyst Eric Wold upgraded Six Flags (SIX) to Buy from Neutral with a price target of $31, up from $27, and Cedar Fair (FUN) to Buy from Neutral with an unchanged price target of $42. Investor focus on the timelines for the various regional theme parks to the reopen to the public as well as the short-term attendance limitations and physical distancing restrictions "misses the greater picture" of a return to more normalized attendance levels in 2021/2022, Wold told investors in a research note. Further, the analyst argued that regional theme parks "control their own destiny" through capital spending on new rides and attractions to provide greater control on bringing consumers back to the parks and driving "stronger" valuation multiples as opposed to the movie theater industry that is dependent upon the studios to provide content.
OPIOID SETTLEMENT POTENTIAL: Morgan Stanley analyst Ricky Goldwasser upgraded AmerisourceBergen (ABC) to Overweight from Equal Weight with a price target of $112, up from $94, noting that fundamentals for drug distributors have been improving but concerns over opioids liability are still weighing on multiples for the group. Nonetheless, as states face increased fiscal pressure, she sees a path for opioid litigation resolution as they might be more willing to accept a lower lump sum, in exchange for an accelerated payment schedule. Goldwasser also argued that an $18B settlement, with a bit over a third paid upfront and the rest paid over 18 years, may be "the sweet spot" that could be acceptable to both sides.
BUY RH: Loop Capital analyst Anthony Chukumba upgraded RH (RH) to Buy from Hold with a price target of $300, up from $250. The analyst believes RH is very well positioned for the "post-pandemic" landscape given the company's focus on home goods, "social distancing-friendly" full-line design galleries, and premier omnichannel capabilities, and thinks RH has a long growth runway ahead, primarily by continuing to replace its small, mall-based legacy stores with much larger full-line design galleries.
Intel
-0.5 (-0.84%)
Shopify
+42.26 (+5.68%)
Twilio
+7.04 (+3.67%)
Six Flags
-0.26 (-1.14%)
Cedar Fair
-0.6 (-1.79%)
AmerisourceBergen
-1.05 (-1.11%)
RH
+0.37 (+0.16%)