Check out today's top analyst calls from around Wall Street, compiled by The Fly.
'SPEND-DRIVEN' MODEL: JPMorgan analyst Richard Shane downgraded American Express (AXP) to Underweight from Neutral with a price target of $97, down from $100. The company's "spend-driven model" is likely to remain pressured as high-income consumers reduce discretionary and leisure travel spend and corporate budgets remain pressured into the first half of 2021, Shane contends. He added that the potential share return for American Express shares is at low end of the sector coverage.
The analyst also downgraded
On the flip side, Shane upgraded
WESTERN BETTER POSITIONED THAN SEAGATE: Bernstein analyst Mark Newman initiated coverage of Western Digital (WDC) with an Outperform rating and $60 price target. The analyst believes that following its acquisition of SanDisk in 2015, the company has successfully diversified into to a broad storage solution provider spanning hard disk-drive and NAND. Furthermore, Newman sees Western Digital as better positioned for long-term growth versus "structurally disadvantaged" Seagate Technology (STX). The current share price indicates "significant underappreciation" of Western Digital's NAND business, he contended.
Meanwhile, Newman also started coverage of Seagate with a Market Perform rating and $45 price target. The analyst noted that while total data storage is expected to grow 24% per year through 2030, he sees the company as being positioned "relatively worse" next to Western Digital because of its sole reliance on HDD. Newman added that Seagate has greater exposure to the dying markets of Mission Critical and Client drives, though he sees its "stable" free cash flow" and "strong" dividend yield of 5% reducing the stock's downside risk.
BUY IMAX: Goldman Sachs analyst Michael Ng initiated coverage of Imax (IMAX) with a Buy rating and $14 price target. The analyst believes that the company's focus on blockbuster films should position it well for a recovery in movie-going as larger films should be less impacted than smaller and mid-budget films, which are more susceptible to competition from alternative distribution platforms. As such, he sees Imax benefiting from a "strong" 2021 movie slate. Additionally, the analyst started coverage of Cinemark (CNK) with a Neutral rating and $12 price target given "idiosyncratic risk" relative to other exhibitors due to its exposure to Latin America.
IMPROVING BOTTOM LINE PROSPECTS: UBS analyst Robin Farley upgraded Harley-Davidson (HOG) to Buy from Neutral with a price target of $31, up from $24. The analyst acknowledged that the company "does not have clear avenues for growth" and some of its pursued initiatives are losing money. However, her upgrade is not driven by Harley's demand problem but rather by its 12-month outlook update and expectations of improving bottom line prospects. Among the "Harley Rewire" initiatives that would improve profitability, the analyst noted the potential for significant dealer inventory reduction, reduction in U.S. dealer locations, potential delays in new bike intros, a scaled-down version of its regular line-up, and a potential withdrawal from certain international markets.
CONTINUED EARNINGS MOMENTUM: Argus analyst John Staszak initiated coverage of Church & Dwight (CHD) with a Buy rating and $98 price target. The analyst expects the company to demonstrate continued earnings momentum in 2020-2021 with earnings per share growth of about 10% in each year, noting that its margins and earnings should benefit from continued integration of its acquired businesses. Staszak added that the rising demand for Church & Dwight cleaning products will outweigh the higher spending on measures to protect employee health.
American Express
+2.23 (+2.35%)
Synchrony
+0.61 (+2.72%)
Santander Consumer
+0.145 (+0.81%)
SLM
+0.09 (+1.32%)
Ally Financial
+0.49 (+2.35%)
NMI Holdings
+0.82 (+5.91%)
Western Digital
+2.09 (+4.97%)
Seagate
+0.98 (+2.07%)
Imax
+0.66 (+5.87%)
Cinemark
+0.75 (+6.09%)
Harley-Davidson
+1.43 (+5.23%)
Church & Dwight
-0.34 (-0.40%)