Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BETTER OPPORTUNITIES ELSEWHERE: Wedbush analyst Seth Basham downgraded Best Buy (BBY) to Neutral from Outperform with a price target of $125, down from $135. While the analyst is raising near-term estimates for Best Buy above consensus based on consumer electronics category strength, he believes that the category will continue to trail home improvement and home furnishings category growth in 2021. At the same time, while Basham still sees potential for material cost savings from a transformation of Best Buy's store base and labor, as well as material growth in the company's health care business, plans and contributions are likely going to be slow to develop. Accordingly, the analyst sees better opportunities in other hardlines names.
MOVING TO THE SIDELINES: KeyBanc analyst Edward Yruma downgraded Etsy (ETSY) to Sector Weight from Overweight without a price target. Etsy remains one of the best long-term growth stories in internet retail, but the near-term likelihood of positive earnings revisions is low, Yruma told investors in a research note. The analyst added that the shares are up 876% since his Overweight rating was initiated. He recommends a "reopening basket" of stocks including Revolve Group (RVLV), Revolve Group (LYFT) and Uber (UBER).
'COMPELLING' PLAY: Citi analyst Thomas Singlehurst initiated coverage of Coursera (COUR) with a Buy rating and $55 price target. Coursera is a long duration investment but one "global education investors shouldn't ignore," Singlehurst contended. The analyst believes professional learning and university services are two of the "most dynamic and exciting areas" of the $6 trillion global education market and that Coursera is a "compelling play on both."
William Blair analyst Stephen Sheldon also started coverage of Coursera with an Outperform rating and no price target. The analyst believes Coursera is one of the best positioned companies in education technology. The company's competitive positioning, "solid" learner outcomes, and large addressable market support the valuation, Sheldon told investors in a research note. Further, he thinks Coursera should deliver at least 25%-30% revenue growth annually over the medium term.
Telsey Advisory, Truist, Needham, KeyBanc, UBS, Stifel, Loop Capital, Morgan Stanley, and DA Davidson also initiated coverage of the name with Buy-equivalent ratings, while Goldman Sachs and Raymond James started Coursera with Neutral-equivalent ratings.
TARGET RAISED AHEAD OF EARNINGS: Truist analyst Youssef Squali raised the firm's price target on Alphabet (GOOGL) to $2,400 from $2,250, while keeping a Buy rating on the shares ahead of the company's first quarter results this week. The quarter will show strong signs of recovery, especially for Google sites, the analyst contended, adding that the digital ad market looks to have "bounced back strongly" based on his intra-quarter checks with both marketers and agencies.
RISK/REWARD MORE BALANCED: Citi analyst Ralph Giacobbe downgraded HCA Healthcare (HCA) to Neutral from Buy with a price target of $215, up from $191. As the analyst considers a likely lower contribution from COVID-19 admissions moving forward, he views HCA's risk/reward are more balanced at current share levels. A recovery in HCA's core business is now well understood and anticipated by investors, Giacobbe said in a research note following the company's "strong" quarter.
Best Buy
-0.83 (-0.70%)
Etsy
-6.27 (-2.92%)
Revolve Group
-0.33 (-0.65%)
Lyft
+0.92 (+1.44%)
Uber
+0.27 (+0.47%)
Coursera
+1.4 (+3.01%)
Alphabet
+3.88 (+0.17%)
Alphabet
+4.07 (+0.18%)
HCA Healthcare
-2.62 (-1.29%)