Check out today's top analyst calls from around Wall Street, compiled by The Fly.
ON THE SIDELINES: Jefferies analyst John Colantuoni raised the firm's price target on eBay (EBAY) to $83 from $67 and kept a Hold rating on the shares as he assumed lead coverage of the stock. The analyst believes "the share repurchase story is mostly priced-in" and to get more positive on the stock he would like to see evidence that category improvements are driving a material acceleration in gross merchandise volume, or GMV, growth.
STRONGER SOFTWARE GROWTH TRAJECTORY NEEDED: Morgan Stanley analyst Meta Marshall downgraded Cisco Systems (CSCO) to Equal Weight from Overweight with a price target of $59, up from $57. Cisco's multiple has expanded to a level nearer to its historical discount to the S&P 500 Index, Marshall told investors in a research note. While the analyst remains confident in company's growth trajectory, he believes achieving his "bull case" requires a "stronger software growth trajectory," putting him on the sidelines heading into upcoming analyst day. Mehta added that Cisco's multiple re-rating is largely complete, making further appreciation dependent on earnings upside.
EV TECH CREDENTIALS: Citi analyst Itay Michaeli initiated coverage of Lucid Group (LCID) with a Buy rating and $28 price target. The analyst believes Lucid has the "necessary building blocks" to benefit from his car of the future thesis. The company offers leading electric vehicle technology credentials, years of development experience, brand momentum and speed-to-market, Michaeli told investors in a research note. The analyst also likes the company's initial "L2+/AV sensor/software approach." Lucid "resembles much of what we like about Tesla, but without the lofty 2030 share & FSD/AV outcomes that one must underwrite," Michaeli added.
ANOTHER MARGIN SQUEEZE: Citi analyst P.J. Juvekar downgraded Sherwin-Williams (SHW) to Neutral from Buy with a price target of $309, down from $331. Higher raw material prices and low availability that persisted through summer after winter storm Uri have been exacerbated after Hurricane Ida, Juvekar told investors in a research note. The analyst also noted that shortages, pricing headwinds and the effects of the semiconductor shortage on auto manufacturer builds have led him to downgrade names in the North America commodity chemicals and specialty chemicals space. Juvekar expects coatings companies to "face another margin squeeze" like they did in the second quarter of this year.
BUY HUMANA: Barclays analyst Steve Valiquette reinstated coverage of Humana (HUM) with an Overweight rating and $500 price target following the company's acquisition of the remaining 60% of Kindred at Home. The analyst still views the upside case on 2022 earnings as "quite compelling" and believes Humana continues to be well positioned for growth under a "CMS-friendly Biden administration."
eBay
-0.13 (-0.18%)
Cisco
-0.26 (-0.44%)
Lucid Group
+0.66 (+3.49%)
Sherwin-Williams
-1.09 (-0.37%)
Humana
+2.725 (+0.66%)