Check out today's top analyst calls from around Wall Street, compiled by The Fly.
GAMESTOP UPGRADED AT TWO FIRMS: Jefferies analyst Stephanie Wissink upgraded GameStop (GME) to Buy from Hold with a price target of $8, up from $7. While admitting "the story isn't without risk," she sees GameStop shares offering "asymmetric reward" potential in the near-term as she expects GameStop to "win big and early" as the next gaming console begins in the fourth quarter of this year, Wissink tells investors. The new console launches activate "a series of catalysts" that include new hardware sales and needed trade-in inventory; new software sales; high margin pre-owned sales; sales of peripherals and accessories; increased loyalty membership and more, the analyst stated.
Telsey Advisory analyst Joseph Feldman also upgraded GameStop to Outperform from Market Perform with a $10 price target.
SELL MGM: Goldman Sachs analyst Stephen Grambling downgraded MGM Resorts (MGM) to Sell from Neutral with a price target of $20, up from $17. A slower recovery in Las Vegas will drive downside to consensus estimates and fundamental underperformance relative to peers, Grambling tells investors in a research note. The analyst points out that MGM shares have rallied 44% since the beginning of August. Grambling also reiterates Buy ratings on Penn National Gaming (PENN) and Red Rock Resorts (RRR).
BUY OVERSTOCK: Needham analyst Rick Patel initiated coverage of Overstock.com (OSTK) with a Buy rating and $96 price target. The ongoing "secular share" shift towards digital commerce has accelerated this year, and the home category is benefiting from consumer nesting, a trend that should continue, Patel tells investors in a research note. Overstock has benefited from a more focused strategy and self-help initiatives across mobile, pricing, marketing and customer service, says the analyst. Patel sees Overstock.com as a "compelling growth story with solid momentum."
THERMO FISHER INITIATED: Morgan Stanley analyst Tejas Savant initiated coverage of Thermo Fisher (TMO) with an Overweight rating and $485 price target. Savant expects Thermo Fisher's growth to outpace its end markets and that of its peers given end market strength and share gains in Biopharma and emerging markets, the analyst tells investors. Thermo's COVID-19 tailwind has "far exceeded initial expectations" and Savant sees this as a durable dynamic even after testing contributions decline given vaccine and therapy upside, the analyst added.
KALA CUT TO HOLD: Jefferies analyst Biren Amin downgraded Kala Pharmaceuticals (KALA) to Hold from Buy with a price target of $10, down from $21 after surveying 25 ophthalmologists and 25 optometrists who are based in the U.S. and treat an average of 224 dry eye disease patients per month. While Amin expects FDA approval for Eysuvis by its October 30 PDUFA date, the eye care professionals surveyed estimated Eysuvis could capture 12% market share at launch in year one and 13% in year two, assuming a price of $280/bottle, said Amin, who believes the company is evaluating a price in the range of $300-600/bottle. Most of the survey doctors pointed to product cost and insurance coverage as the main hurdle to strong Eysuvis adoption, added Amin.
GameStop
-0.13 (-2.09%)
MGM Resorts
-0.1 (-0.44%)
Penn Entertainment
-3.22 (-5.16%)
Red Rock Resorts
-0.34 (-1.94%)
OSTK
+
Thermo Fisher
+11.31 (+2.70%)
Kala Pharmaceuticals
-0.16 (-1.79%)