Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BUY COMCAST: TD Securities analyst Vince Valentini upgraded Comcast (CMCSA) to Buy from Hold with a price target of $58, up from $54. Given pandemic-related uncertainty, he had previously removed all value from the Parks business in his net asset value calculations. However, Valentini is now including a value of $18B, or about $4 per share, for the Parks business with "widespread vaccinations seemingly on the horizon." The analyst also cited recent share price weakness, noting that Comcast shares have seen the worst decline among the cable comp group since late November.
SELL BED BATH & BEYOND: UBS analyst Michael Lasser downgraded Bed Bath & Beyond (BBBY) to Sell from Neutral with a $20 price target. The analyst recommended that investors take profits after a 73% year-to-date run-up in shares, with the recent gains tilting the stock's risk-reward to the downside. Lasser added that Bed Bath's turnaround probably won't deliver "linear progress," while the challenges faced by the company are "deep and will take time to fix." Industry-wide sales of kitchen and furnishings will face pressure as consumers shift spending to areas like food away from home and travel on the other side of the pandemic, the analyst contended.
ONGOING SALES BEATS: Goldman Sachs analyst Stephen Grambling upgraded DraftKings (DKNG) to Buy from Neutral with a price target of $65, up from $45. The analyst sees ongoing sales beats versus consensus estimates driven by DraftKings' "sustained market leading" position in new and existing markets, its ability to participate in the economics of single operator states, and the presence of national partnerships that should accelerate growth and achieve scale sooner than the broader peer group. DraftKings, along with Penn National Gaming (PENN), have the "greatest optionality to drive a network effect," which should bring an upward valuation re-rating, Grambling told investors in a research note. He recommended buying the market leaders in the "still-emerging" online sports betting industry.
SECULAR GROWTH TO CONTINUE: Deutsche Bank analyst Vitu Leung initiated coverage of JD.com (JD) with a Buy rating and $114 price target. China's e-commerce sector looks set for continued secular growth with new retail ventures, even after a decade of strong growth, Leung told investors in a research note. The analyst expects the second to post a 26% annual revenue growth through 2023, outpacing a China online retail sales growth of 17% in the same period. Leung also started coverage of Pinduoduo (PDD) with a Buy rating and $199 price target.
ESTIMATES LOOK CONSERVATIVE: Cowen analyst John Kernan upgraded Under Armour (UAA) to Outperform from Market Perform with a price target of $23, up from $17. The analyst sees consensus estimates as conservative given improving top-line trajectory, gross margin expansion, direct-to-consumer mix shift, and potential upside to restructuring savings.
Comcast
+0.42 (+0.86%)
Comcast
+ (+0.00%)
Bed Bath & Beyond
+0.85 (+2.77%)
DraftKings
+3.92 (+7.64%)
JD.com
-1.53 (-1.55%)
PDD Holdings
-4.15 (-2.30%)
Under Armour
+0.215 (+1.35%)
Under Armour
+0.23 (+1.23%)
Penn Entertainment
-0.27 (-0.26%)