Check out today's top analyst calls from around Wall Street, compiled by The Fly.
INTEL DOWNGRADED AFTER EARNINGS: Roth Capital analyst Suji Desilva downgraded Intel (INTC) to Neutral from Buy with a price target of $55, down from $75 following the company's quarterly results. While the Q2 results exceeded consensus with stronger cloud and notebook demand due to the COVID impact, the analyst expects demand across both client and data center to moderate into 2H following the strong 1H results. Additionally, Desilva sees greater uncertainty for the company's longer-term roadmap after Intel pushed out its next-generation 7nm manufacturing ramp timeframe.
Bernstein analyst Stacy Rasgon downgraded Intel to Underperform from Market Perform with a $45 price target following the company's quarterly results, saying this earnings call was the "worst we have seen" and brings Intel's structural issues directly to the forefront. The analyst sees 7nm delays likely overshadowing anything good Intel can put forth, while magnifying any negative events, and that the only bull case remaining is that the stock is cheap.
Barclays analyst Blayne Curtis downgraded Intel to Underweight from Equal Weight with a price target of $48, down from $58. The company's June results were ahead as expected while fiscal year guidance is guidance is weaker, but the real focus of the earnings call was the major delays on its 7nm process technology, Curtis tells investors in a research note. The "big issue here is that 10nm is still not fixed and now 7nm seems uncertain even with the delay," contends Curtis. As a result, the analyst believes AMD (AMD) "should continue to eat into" Intel's share "for the foreseeable future."
Intel was also downgraded at BofA, Northland, Deutsche Bank, and Exane BNP Paribas following the company's quarterly report last night.
UNDER ARMOUR NAMED SHORT-TERM BEST IDEA: Deutsche Bank analyst Paul Trussell placed a "Catalyst Call Buy" on Under Armour (UAA) as a short-term trading idea. The analyst believes the company's Q2 and quarter-to-date performance will beat "muted" expectations due to an overall "healthy" lifestyle trend elevating the brand. Athletic brands and retailers have highlighted strong in store trends as stores reopen, and Under Armour likely took part in this resurgence, Trussell tells investors in a research note.
TESLA UPGRADE: Argus analyst William Selesky upgraded Tesla (TSLA) to Buy from Hold with an $1,888 price target following its "strong" Q2 results this week amid "strong demand" for the company's vehicles during a pandemic. The analyst notes that while Tesla experienced problems with production delays, parts shortages, and labor cost overruns" in the past, he sees its performance continuing to improve thanks to its "unrivaled brand reputation" in the EV industry.
TESLA DOWNGRADE: Daiwa analyst Jairam Nathan downgraded Tesla to Neutral from Outperform with a price target of $1,650, up from $1,500. The stock closed Thursday down $79.26 to $1,513.07. The analyst sees a balanced risk/reward scenario going forward. Positive catalysts such as continued visibility towards strong volume growth and Battery Day in September are largely reflected in current valuations, Nathan tells investors in a research note. At the same time, the analyst sees the possibility of near-term disappointment in margins as Tesla executes on its capacity and product expansion strategy. Nonetheless, he remains positive on Tesla's ability to sustain its technology and cost lead for the next several years.
JPMORGAN UPGRADED TO BUY: Goldman Sachs analyst Richard Ramsden upgraded JPMorgan (JPM) to Buy from Neutral with a $116 12-month price target. JPMorgan is well positioned to "defend" short-term returns and sustain its dividend over the next several quarters, and it has the highest longer-term return profile of the large banks, Ramsden tells investors in a research note. On a go-forward basis, JPMorgan can generate the highest return on tangible common equity among the large banks after 2020, as continued market share gains and efficiency improvement offset pressure from lower rates and drive best in class returns, says the analyst.
AMAZON PRICE TARGET RAISED TO $3,400: Credit Suisse analyst Stephen Ju raised the firm's price target on Amazon.com (AMZN) to $3,400 from $2,760 and keeps an Outperform rating on the shares ahead of the company's July 30 results. The longer consumers remain under shelter-in-place, the higher the likelihood of the new behaviors learned during quarantine to become newfound habits, Ju tells investors in a research note, adding that he sees e-commerce segment operating margin expansion as it grows into its larger infrastructure, with optionality for faster-than-expected free cash flow growth vis-a-vis its advertising segment.
Amazon.com
-71.475 (-2.40%)
JPMorgan
+0.36 (+0.36%)
Under Armour
-0.03 (-0.28%)
Under Armour
-0.025 (-0.26%)
Tesla
-122.09 (-8.07%)
Intel
-10.22 (-16.90%)