Check out today's top analyst calls from around Wall Street, compiled by The Fly.
TESLA UPGRADES: Morgan Stanley analyst Adam Jonas upgraded Tesla (TSLA) to Equal Weight from Underweight with a price target of $1,360, up from $1,050. The analyst says his model now assumes the benefits of a transfer of supply of batteries and EV powertrains to 3rd party OEMs as part of his base case scenario vs. a bull case previously. Jonas adds that the credit for a 3rd party battery/EV powertrain supply business amounts to about $310 per share, though he believes that today's Tesla valuation "largely discounts" the OEM battery opportunity.
Meanwhile, BofA analyst John Murphy upgraded Tesla to Neutral from Underperform with a price target of $1,750, up from $800. The company's "ever-increasing" stock price is "direct evidence" that Tesla has unfettered access to low-cost capital, which remains a key advantage that should be leveraged to accelerate growth, Murphy tells investors. He notes that his revised price target is prior to adjustment for Tesla's five-for-one stock split that will be effective August 31.
VENTAS UPGRADED: RBC Capital analyst Michael Carroll upgraded Ventas (VTR) to Outperform from Sector Perform with a price target of $45, up from $34. While property-level fundamentals will likely remain volatile over the next few quarters, he is incrementally more encouraged on the near-term trends in the seniors housing recovery, Carroll tells investors. He sees the space beginning to recover in early-to-mid 2021 and accelerating in 2022, the analyst added.
Additionally, Evercore ISI analyst Sheila McGrath upgraded Ventas to In Line from Underperform with a $43 price target.
VROOM DOWNGRADED ON REVENUE RESET: Benchmark analyst Michael Ward downgraded Vroom (VRM) to Hold from Buy following the company's Q2 results, saying the unit sales and pricing data was lower than expected in Q2 and the guidance for the second half for units and pricing was also below expectations. Ward says cash needs are minimal and proceeds from the IPO should allow the company to pursue growth ambitions, but, in the near-term, believes the stock is fairly valued at current levels.
RETAILER INITIATIONS: DA Davidson analyst Michael Baker initiated coverage of Walmart (WMT) with a Buy rating and $148 price target. The company is well-positioned to capitalize on consumers' stay-at-home culture given its "strong" grocery offering and improved omnichannel capability, the analyst tells investors in a research note. Baker adds that Walmart shares can outperform if the economy turns weaker than expected given the company's "basic" product mix.
Baker also initiated coverage of Target (TGT) with a Buy rating and $152 price target. The analyst is citing the company's "resurgent comps" as Target benefits from the "power of store assets in the omnichannel world" and its early investments in transforming its supply chain. Baker adds that after 3 years of decline, operating margins grew in 2019 and stand to resume recovery after the pandemic-related challenges.
The analyst further initiated Home Depot (HD) and Costco (COST) with a Neutral and Lowe's (LOW) and Dick's Sporting (DKS) with a Buy.
HOTEL UPGRADES: Jefferies analyst David Katz upgraded Hilton (HLT) and Marriott (MAR) to Buy from Hold with a price target of $101, up from $72, and $125, up from $88, respectively. Katz believes the Street will increasingly seek high-quality laggards as the economy recovers, and expects the hotel operators to outperform. The analyst is confident that efficiencies to the operating model should drive better returns for the companies and related owners as demand rebounds through 2021 and into 2022, and that RevPAR is likely to be consequential for stocks post the crisis versus prior.
Tesla
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Ventas
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Vroom
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Walmart
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Target
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Lowe's
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HDFC Bank
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Costco
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Dick's Sporting
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Hilton
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Marriott
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