Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BUY FEDEX: KeyBanc analyst Todd Fowler upgraded FedEx (FDX) to Overweight from Sector Weight with a $350 price target. The analyst cited the proprietary Online Parcel Index suggesting that B2C parcel volumes remained strong throughout the first quarter. Fowler added that the positive trends around more resilient airfreight dynamics, leverage to improving global economic activity, and rational pricing dynamics should persist and "more than offset" any potential impact from a return to in-person shopping and service spending.
TRAVEL REBOUND: Jefferies analyst Brent Thill upgraded Booking Holdings (BKNG) to Buy from Hold with a price target of $2,800, up from $2,300, as he sees increasing signs of pent-up travel demand and notes that shares have underperformed the broader travel space year-to-date. While he recognizes the elevated level of uncertainty around COVID-19 and the fact that 85%-90% of Booking bookings and revenue come from outside the U.S., Thill thinks the rest of the world will catch up with the U.S. on vaccination levels and global travel will rebound by the second half of 2021.
PIPELINE ASSET VISIBILITY: Truist analyst Gregg Gilberg upgraded Bristol-Myers (BMY) to Buy from Hold with a price target of $74, up from $66. The analyst notes that his prior neutral stance and October Hold rating was based on pending greater visibility for key late-stage pipeline assets for the company. But since then, Bristol-Myers has received FDA approval for Abecma and Breyanzi, and has also announced positive topline Phase 3 results for deucravacitinib and relatlimab, he contended.
'CLEAR' SIGNS OF RECOVERY: Susquehanna analyst Christopher Stathoulopoulos upgraded JetBlue (JBLU) to Positive from Neutral with a $26 price target. The analyst said with clear signs of recovery in U.S. domestic air travel, he prefers the low-cost model as he believes its operational flexibility, and lower direct and indirect costs should support better unit economics and by extension, more resilient margins.
ON THE SIDELINES: Wolfe Research analyst Greg Badishkanian initiated coverage of Coca-Cola (KO) with a Peer Perform rating. The company is well positioned to benefit from the restaurant recovery, but getting back to pre-COVID levels is already priced in with the stock trading at 25-times expected forward earnings, the analyst told investors in a research note. Badishkanian added that Coca-Cola's balance sheet issues, capital allocation constraints, and tax overhangs also contribute to his neutral stance.
Additionally, Badishkanian started coverage of PepsiCo (PEP) with a Peer Perform rating. The analyst sees "a lot of momentum" behind Pepsi's business but argues that it is "too defensive for the current market." Further, compares are tough in the FritoLay business and the beverage margin expansion story is well understood by analysts, Badishkanian told investors in a research note.
The analyst also initiated coverage of Constellation Brands (STZ) with an Outperform rating and $265 price target and Molson Coors (TAP) with a Peer Perform rating.
FedEx
-0.815 (-0.28%)
Booking Holdings
-37.09 (-1.54%)
JetBlue
-0.825 (-4.03%)
Bristol Myers
+0.71 (+1.13%)
Coca-Cola
-0.13 (-0.24%)
PepsiCo
+0.49 (+0.34%)
Constellation Brands
-0.88 (-0.39%)
Constellation Brands; also tag STZ
+ (+0.00%)
Molson Coors
+0.32 (+0.63%)