Check out today's top analyst calls from around Wall Street, compiled by The Fly.
SLOWER DELIVERY RECOVERY: Bernstein analyst Douglas Harned downgraded Spirit AeroSystems (SPR) to Market Perform from Outperform with a price target of $26, down from $40. The analyst previously reduced delivery expectations for Boeing (BA) and Airbus (EADSY) due to a more negative trajectory for the return of global travel and more near-term pressure from customers to defer deliveries. Harned is now incorporating the lower expectations into his Spirit outlook. The revised delivery outlook reduces revenue, long-term earnings, and free cash flow estimates for Spirit, he noted.
SHARES STARTING TO LOOK ATTRACTIVE: JPMorgan analyst Paul Coster upgraded Nikola (NKLA) to Overweight from Neutral with an unchanged price target of $45. After falling 40% in month-to-date in July, the shares are starting to look attractive for long-term investors ahead of a "number of potential positive catalysts in coming weeks and months," Coster contended. The analyst believes Nikola is currently a "story-stock," and notes he is "on board as long as the company executes to plan." Coster also expects a number of developments out of Nikola soon, including announcement of a manufacturing partner for the Badger truck, an H2 station deployment plan for the U.K., and potentially accelerated implementation plans for the FCEL truck in the U.S.
SUPERIOR REOPENING TRENDS: Bank of America analyst Lorraine Hutchinson upgraded Kohl's (KSS) to Buy from Neutral with a $27 price target. The department store stocks have performed similarly year-to-date, but as the reopening phase continues, investors will begin to differentiate between different business model, the analyst contended, noting that Kohl's has already started demonstrating superior reopening trends relative to its peers. With shares trading at 2.5-times enterprise value to expected forward EBITDA, Hutchinson argued that the upside risk outweighs the downside for the shares.
SHARE LOSSES: Barclays analyst Gaurav Jain downgraded Altria Group (MO) to Equal Weight from Overweight with a price target of $43, down from $50. The analyst pointed out that the company is 100% U.S.-exposed and continues to lose market share. Jan also increased his fiscal 2020 U.S. cigarette industry volumes estimate to down 3%, but expects volumes to worsen to down 4% post 2020.
MOVING TO THE SIDELINES: Citi analyst Jill Shea downgraded American Express (AXP) to Neutral from Buy with a price target of $105, down from $110. The analyst cited valuation for the downgrade. Shea views American Express as more fairly valued at current share levels and sees more limited upside.
Spirit AeroSystems
-0.135 (-0.60%)
Boeing
+1.735 (+0.97%)
Airbus
+ (+0.00%)
Nikola
+8.98 (+22.31%)
Kohl's
+0.82 (+4.04%)
Altria Group
+0.31 (+0.78%)
American Express
-0.42 (-0.45%)