Check out today's top analyst calls from around Wall Street, compiled by The Fly.
'PARADIGM CHANGER' DELIVERIES: Wedbush analyst Daniel Ives upgraded Tesla (TSLA) to Outperform from Neutral with a price target of $1,000, up from $950. The analyst also added the shares to the "Wedbush Best Ideas" list with a $1,300 "long-term bull case." The first quarter delivery numbers released Friday was a "paradigm changer" and shows that the pent-up demand globally for Tesla's Model 3/Y is hitting its "next stage of growth as part of a global green tidal wave underway," Ives told investors in a research note. The analyst now believes Tesla could exceed 850,000 deliveries for 2021 with 900,000 a "stretch goal," despite the chip shortage and supply chain issues lingering across the auto sector.
While the electric vehicle sector and Tesla shares have been under significant pressure so far this year, the "tide is turning" on the Street and the "eye popping" delivery numbers coming out of China cannot be ignored with the trajectory on pace to represent 40% of deliveries for Tesla by 2022, said Ives. The analyst believes Tesla's profitability and free cash flow profile will significantly improve over the next four years with $20 of annual earnings per share potential by 2026.
BUY GM, FORD: Wells Fargo analyst Colin Langan initiated coverage of General Motors (GM) with an Overweight rating and $67 price target. General Motors is leading the way in the autonomous, electric, and connected future of mobility, the analyst told investors in a research note. While restructuring work still needs to be done internationally, GM's North American operations are strong, reporting a 9.4% adjusted EBIT margin in 2020, an incredible performance in a market down 20%, said Langan.
The analyst also started coverage of Ford (F) with an Overweight rating and $15 price target. The analyst believes the new CEO Jim Farley has already accelerated the previously "glacial" pace of the Ford turnaround and simultaneously accelerated the company's shift from ICE to EV. The turnaround is a massive change, as Ford is no longer focused on having a product for all markets, but rather focused on delivering products in segments with competitive strength, pickups and SUVs, he added, pointing out that Ford North America has one of the strongest line-ups in decades with a refreshed F-150, the Mustang Mach E, and new Broncos.
LITTLE RISK TO NEAR-TERM ESTIMATES: Citi analyst Jason Bazinet upgraded Spotify Technology (SPOT) to Neutral from Sell with an unchanged price target of $310. The analyst sees little risk to near-term net addition estimates. While Spotify app downloads did retrench in the first quarter, if the historical relationship between app downloads and Premium net adds holds, the company will likely add 3M to 6M Premium net adds in the quarter, Bazinet told investors in a research note.
IMPROVING TRENDS: Raymond James analyst Savanthi Syth upgraded JetBlue (JBLU) to Outperform from Market Perform with a $24 price target. Syth cited improving trends in its core markets, including the recovery in near-international, as well as the potential for normalized margin expansion if it were to execute on just a few earnings levers, including the Northeast alliance with American (AAL) and the reduction of fixed costs and improvement in variable cost efficiency.
'IMPRESSIVE' WEEKEND: B. Riley Securities analyst Eric Wold upgraded AMC Entertainment (AMC) to Buy from Neutral with a price target of $13, up from $7, following the "impressive" opening weekend domestic box office performance for "Godzilla vs. Kong." Given that the North American theater base is only about 60% open at this point with theater capacity restrictions averaging 25%-50% across the board, this weekend's results are impressive considering the prior film, "Godzilla: King of the Monsters" opened to only $47.8M back in May 2019, Wold told investors in a research note. The analyst believes consumers want to leave the house and return to the theater.
Further, Wold has "remained impressed" with AMC management's ability to weather the pandemic headwinds by both strengthening the balance sheet and negotiating with landlords to improve the cash runway into 2022. As the largest exhibitor in North America that also operates the highest number of premium Imax (IMAX) screens, AMC is well positioned to benefit from the industry's "projected resurgence and return to pre-pandemic attendance levels by 2023," said the analyst. With management increasingly signaling the ability and willingness to utilize equity to reduce the debt load, Wold can "now be more constructive on the upside opportunity for the shares."
Tesla
+36.36 (+5.49%)
General Motors
+1.69 (+2.92%)
Ford
+0.295 (+2.42%)
Spotify
+5.51 (+2.02%)
JetBlue
+0.75 (+3.68%)
American Airlines
+0.915 (+3.83%)
AMC Entertainment
+0.595 (+6.36%)
Imax
+0.18 (+0.86%)