Check out today's top analyst calls from around Wall Street, compiled by The Fly.
MUCH OF THE RISK PRICED IN: Berenberg analyst Jack Cummins upgraded DraftKings (DKNG) to Hold from Sell with a price target of $42.50, up from $41. The analyst noted that since his initiation report in January the shares have fallen 16%, with his fair value estimate per share now offering minimal downside to the current share price. While he remains concerned about the integration and tech migration that is due to complete in September, at the current share price the analyst thinks much of the risk to market share declines is priced in.
IMPROVING EMPLOYMENT: RBC Capital analyst Scot Ciccarelli downgraded Dollar General (DG) to Sector Perform from Outperform with a price target of $207, up from $206. The analyst noted that the company continues to execute at a high level, but an improving employment macro environment could reduce the trade-down activity even as rising food and gas prices pressure its existing customer. Ciccarelli further stated that Dollar General's growth may slow faster as the impact of fiscal stimulus fades.
COMPELLING RISK/REWARD: Stifel analyst Matthew Sheerin initiated coverage of HP Enterprise (HPE) with a Buy rating and $20 price target. While "some can argue that HPE is still a 'show-me' story with many moving parts," Sheerin believes the current risk/reward is compelling given an improved outlook for IT infrastructure spending and what he sees as the likelihood of "at least a modest beat-and-raise."
BUY UNITY: Stifel analyst Tom Roderick upgraded Unity Software (U) to Buy from Hold with an unchanged price target of $125. With shares of Unity off 52% from December highs, and following a first quarter report that should offer "plenty of comfort that IDFA is likely to be a passing storm," Roderick argued that shares are still expensive, but he is "out of reasons as to why they will ever be cheap." Unity is already a premier real-time 3D software development gaming platform, but digital transformation conversations are accelerating projects in verticals like automotive, engineering, and construction and he sees use-cases expanding, Roderick contended.
MOVING TO THE SIDELINES: JPMorgan analyst Eric Joseph downgraded Novavax (NVAX) to Neutral from Overweight with a price target of $161, down from $285. There were "several disappointing updates" on the recent earnings call, the most troubling is the "clear challenge" the company still faces in manufacturing its vaccine candidate at large scale, Joseph told investors in a research note. The analyst has "dwindling confidence" in Novavax's ability to meet its revised production targets in the second half of 2021.
DraftKings
-0.15 (-0.34%)
Dollar General
-3.705 (-1.73%)
HP Enterprise
-0.18 (-1.11%)
Unity
+2.43 (+2.87%)
Novavax
+0.95 (+0.69%)