Check out today's top analyst calls from around Wall Street, compiled by The Fly.
MOVING TO THE SIDELINES: Piper Sandler analyst Alexander Potter downgraded Carvana (CVNA) to Neutral from Overweight with a price target of $306, up from $303. Online platforms are "stealing share" from used car dealerships, and "without Carvana's trailblazing work, this trend wouldn't be so obvious," Potter told investors in a research note. However, there's a price for everything, and Carvana is now fairly valued, the analyst argued. Potter added that Shift Technologies (SFT) is his favorite alternative to Carvana.
CARBONATED BEVERAGE TAILWIND: Wells Fargo analyst Chris Carey upgraded Keurig Dr Pepper (KDP) to Overweight from Equal Weight with a price target of $42, up from $36. The company's carbonated beverages are the key driver of its outperformance versus peers on a portfolio level, Carey told investors in a research note. The analyst believes this outperformance has been "under-appreciated and misunderstood," and expects Keurig Dr Pepper's momentum to sustain with structural portfolio advantages. Further, Carey sees a "positive macro overlay that disproportionately benefits" domestic-focused Keurig Dr Pepper versus multi-national peers.
REASONABLE VALUATION: Stifel analyst Chris O'Cull initiated coverage of Planet Fitness (PLNT) with a Hold rating and $82 price target. Planet is "the leading franchisor in the health club industry" and its high-volume/low-price gym access has helped it achieve roughly 22% member share and weather the pandemic, O'Cull told investors. While he believes Planet will return to expansion, his rating reflects his view of the stock's "reasonable" valuation given the uncertainty around the time needed for franchisees to rebuild their resources to support unit expansion at pre-COVID levels.
BUY HERBALIFE: B. Riley analyst Jeff Van Sinderen initiated coverage of Herbalife Nutrition (HLF) with a Buy rating and $70 price target. The analyst argued that Herbalife has become a global leader in weight management nutritional supplements through a community-based approach, reaching consumers across a broad range of incomes. The company is gaining incremental traction in targeted and sports/fitness nutrition, while growing profitably amid favorable macro trends, Van Sinderen added. He believes the shares have the potential to "re-rate" as investors refocus on cash flow generation and the company's growth opportunities ahead.
ACCELERATION OF REVENUE GROWTH: DA Davidson analyst Peter Heckmann assumed coverage of Coursera (COUR) with a Buy rating with a price target of $52, down from $55. Over the next three years, the analyst expects the company to generate compound annual organic revenue growth in the 25%-30% range while moving it closer to breakeven. The pandemic and related economic impacts stimulated demand across all three of Coursera's segments and led to an acceleration of revenue growth, Heckmann told investors in a research note.
Carvana
-5.565 (-1.82%)
Keurig Dr Pepper
+0.35 (+1.00%)
Planet Fitness
-0.4 (-0.53%)
Herbalife
+0.57 (+1.06%)
Coursera
-1 (-2.38%)
Shift Technologies
-0.045 (-0.52%)