Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BUY NETFLIX: Stifel analyst Scott Devitt upgraded Netflix (NFLX) to Buy from Hold with a price target of $560, up from $550. The analyst told investors that he has "been waiting for" Netflix to have the quarter in which the pull-forward of subscribers due to the pandemic became evident, as was the case in its first quarter results. While Devitt still expects a three-to-nine month period of working through the remaining COVID comp issues, he argued that shares should be accumulated on the share price weakness created by COVID comps given that he thinks Netflix "remains a compelling long-term growth story."
'STRONG' RESULTS: Argus analyst David Toung upgraded UnitedHealth (UNH) to Buy from Hold with a $450 price target after its "strong" first quarter earnings beat and fiscal year 2021 guidance raise. The company has "solid" growth drivers in its managed care and Optum businesses, highlighted by the robust membership growth in the former and a solid backlog in the latter segment during the past quarter, the analyst told investors in a research note. UnitedHealth's combination of top-line growth and margin expansion is also driving an industry-leading ROI, Toung added.
'INCREASINGLY' ATTRACTIVE: Berenberg analyst Eoin Mullany upgraded Morgan Stanley (MS) to Buy from Hold with a price target of $91, up from $67. The analyst believes Morgan Stanley is "becoming increasingly attractive." A growing proportion of its earnings are generated from wealth and investment management, its investment bank has consistently taken market share over the last few years, and its capital return is likely to exceed consensus expectations given the company's strong capital buffer, Mullany contended. The analyst believes this can drive a further re-rating of the shares.
GROWING CRYPTOCURRENCY ADOPTION: Rosenblatt analyst Sean Horgan initiated coverage of Coinbase (COIN) with a Buy rating and $450 price target. The analyst is "bullish" on the stock over the long-term as the company benefits from the growing adoption and acceptance of cryptocurrency, even though he is "more cautious" as the stock faces downside risk from a drawdown in the price of crypto. Horgan added that while sustainable long-term growth is less uncertain, his expectations could also be "potentially conservative" given upside risk from institutional adoption and subscription revenue growth.
SELL AUTOZONE: Bank of America analyst Elizabeth Suzuki downgraded AutoZone (AZO) to Underperform from Neutral with an unchanged price target of $1,390. With the stock up 29% year-to-date, and having outperformed auto parts retail peers Advance Auto Parts (AAP), Genuine Parts (GPC), and O'Reilly Automotive (ORLY), Suzuki thinks the "good news is now priced in." The stock now trades in line with peer Advance Auto, which she views as having more attractive multi-year earnings growth potential.
Netflix
-38.06 (-6.92%)
UnitedHealth
+1.07 (+0.27%)
Morgan Stanley
+0.16 (+0.21%)
Coinbase
-8.61 (-2.68%)
AutoZone
-4.05 (-0.27%)
Advance Auto Parts
+4.9 (+2.53%)
Genuine Parts
+0.62 (+0.52%)
O'Reilly Automotive
-2.02 (-0.38%)