Check out today's top analyst calls from around Wall Street, compiled by The Fly.
WOLFE CUTS DELTA, UNITED, BOEING TO UNDERPERFORM: Wolfe Research analyst Hunter Keay downgraded Boeing (BA), United Airlines (UAL) and Delta Air Lines (DAL), all to Underperform from Peer Perform, given his view that the stocks are pricing in a recovery scenario that appears to be too optimistic. Given the uncertainty as to when business travel will return, he said the stocks have all "run too far ahead" of his estimates. Keay also downgraded aerospace supplier Spirit AeroSystems (SPR) to Peer Perform from Outperform on related concerns.
SELL STITCHFIX: MKM Partners analyst Roxanne Meyer downgraded Stitch Fix (SFIX) to Sell from Neutral with a higher price target of $28, up from $25 ahead of its earnings next week. The analyst notes that while her fundamental outlook on the company has not changed, the stock has appreciated 49% since late September. Meyer adds that some investors will view the management's increased focus on sales as a positive, tying executive compensation to sales performance represents an effort to support "growth at any cost," which creates risk to execution and to margins.
OLLIE'S DOWNGRADED TO NEUTRAL: Goldman Sachs analyst Chandni Luthra downgraded Ollie's (OLLI) Bargain Outlet to Neutral from Buy with a price target of $95, down from $122. The analyst says the company's Q3 earnings commentary was highlighted by a "sharp slowdown" in Q4 quarter-to-date trends while also alluding to uncertainty around the timing of large deals. Luthra continues to see Ollie's as a "strong operator", but warns that valuation will keep the stock range-bound in the near-term, particularly with more challenging compares coming next year.
CARVANA INITIATED AT BUY: Jefferies analyst John Colantuoni initiated coverage of Carvana (CVNA) with a Buy rating and $300 price target. He views the $550B market for used vehicles as "ripe for disruption" and believes the stock could double if Carvana continues expanding its market share at its historical pace, Colantuoni tells investors.
SAGE UPPED TO BUY: Mizuho analyst Vamil Divan upgraded Sage Therapeutics (SAGE) to Buy from Neutral with a price target of $81, up from $77. The analyst sees an attractive risk/reward following the company's collaboration deal with Biogen (BIIB). While Sage is giving up some potential upside from zuranolone and SAGE-324, the deal provides external validation for both programs and makes each one much more valuable than if Sage were to continue developing them on its own, Divan tells investors in a research note. The analyst expects the upcoming data releases from both zuranolone and SAGE-324 to improve investor sentiment and drive share price appreciation.
Boeing
-2.395 (-1.01%)
Delta Air Lines
+0.07 (+0.16%)
United Airlines
+0.33 (+0.66%)
Stitch Fix
-1.22 (-3.21%)
Ollie's Bargain Outlet
-9.48 (-10.59%)
Carvana
+8.02 (+3.52%)
Sage Therapeutics
-0.12 (-0.17%)
Biogen
+0.99 (+0.41%)