Check out today's top analyst calls from around Wall Street, compiled by The Fly.
SLACK DOWNGRADED AT GOLDMAN: Goldman Sachs analyst Heather Bellini downgraded Slack Technologies (WORK) to Sell from Neutral with an unchanged price target of $30. The stock closed Thursday up $1.82 to $34.22. Although Slack has been a near-term beneficiary of the work from home environment, a key investor focus from here will be the company's "enduring battle" with Microsoft Teams (MSFT) over market share, Bellini tells investors in a research note. Slack has a "best-in-class" team messaging offering that is favored by the technical community, but Microsoft Teams will continue to try and leverage its packaging within Office 365 to drive increased adoption, thus creating the potential for a more competitive environment, says the analyst. Bellini sees risk of elevated risk of churn over the next 12 months for Slack as Teams given the uncertain competitive landscape.
OCCIDENTAL UPGRADED AT SUNTRUST: SunTrust analyst Neal Dingmann upgraded Occidental Petroleum (OXY) to Buy from Hold with a price target of $25, up from $13. The company has "ample" free cash flow and assets to address its elevated leverage and expects it to continue improving its balance sheet through internal and external means, the analyst tells investors in a research note. The potential for "massive" asset sales domestically and internationally is "compelling", Dingmann states, adding that even assuming a "conservative" price deck, he sees over $1B in free cash flow generation this year and about $2.8B in 2021.
DISNEY PRICE TARGET RAISED: Wells Fargo analyst Steven Cahall raised the firm's price target on Disney (DIS) to $118 from $107 and keeps an Equal Weight rating on the shares. The analyst remains more pessimistic than most on the potential length and depth of the coronavirus pandemic and its impact on Parks operations and Studio production. Cahall believes that if coronavirus is around for a while, Disney may be range-bound, and thinks that while Parks are beginning a re-opening process, financial progress could be choppy.
SPOTIFY PRICE TARGET HIKED: Monness Crespi analyst Brian White raised the firm's price target on Spotify (SPOT) to $275 from $200 and keeps a Buy rating on the shares. The new, high-profile podcast additions announced over the past month offer the opportunity for increased engagement on the platform and the possibility for incremental MAU additions over the next 12-18 months, White contends. Following the recent announcements, he believes investors are "beginning to buy into Spotify's bold podcast vision that was met with great skepticism when first unveiled," White added.
In addition, Rosenblatt analyst Mark Zgutowicz raised the firm's price target on Spotify to $275 from $190 and keeps a Buy rating on the shares. He notes that over the last few months the company has signed podcast exclusive deals with sports network The Ringer, The Joe Rogan Experience, Kim Kardashian West's The Innocence Project and DC Entertainment. He sees attractive monetization potential from these exclusive deals and also expects them to provide future leverage for premium subscription pricing and label negotiations, Zgutowicz said.
CANTOR BOOSTS NOVAVAX PRICE TARGET: Cantor Fitzgerald analyst Charles Duncan raised the firm's price target on Novavax (NVAX) to $88 from $45 and reiterates an Overweight rating on the shares. The stock closed Thursday up $3.86 to $59.27. The recent additions of "well-known and established biotech veterans" to Novavax's executive team are "value-creating" due to experience and "fresh thinking," Duncan tells investors in a research note. The analyst sees Filip Dubovsky being named Chief Medical Officer and Silvia Taylor named SVP, Investor Relations and Corporate Affairs as external validation of Novavax's maturing pipeline and potential broad applicability of its platform recombinant nanoparticle/Matrix-M adjuvant platforms. Duncan now has increased conviction in Novavax's pipeline potential.
Disney
+1.3 (+1.10%)
Spotify
+9.9 (+4.39%)
Novavax
+3.18 (+5.36%)
Occidental Petroleum
+0.72 (+3.66%)
Microsoft
+2.71 (+1.38%)
Bought by CRM
-1.66 (-4.85%)