Check out today's top analyst calls from around Wall Street, compiled by The Fly.
MOVING TO THE SIDELINES: Argus analyst John Staszak downgraded Peloton (PTON) to Hold from Buy. The analyst cited the company's first quarter earnings miss and the guidance cut announced on Thursday evening.
UPSIDE TO DISCOVERY: Macquarie analyst Tim Nollen upgraded Discovery (DISCA) to Outperform from Neutral with a price target of $40, up from $33. The analyst sees upside to Discovery given strong Discovery+ growth, the transformation into a scaled media player with the Warner merger, and a cheap valuation. Nollen is also raising estimates following Q3 results and given a good advertising backdrop.
BUY VMWARE: Barclays analyst Raimo Lenschow reinstated coverage of VMware (VMW) with an Overweight rating and $163 price target after the spinoff from Dell (DELL). VMware has emerged as an independent company with the Dell overhang removed and the ability to enter into deeper cloud and new OEM partnerships, contended Lenschow, who expects revenue acceleration and free cash flow margin expansion through 2024.
SELL VOLKSWAGEN: Jefferies analyst Philippe Houchois downgraded Volkswagen (VWAGY) to Underperform from Buy with a price target of EUR 170, down from EUR 270. VW CEO Herbert Dies' "constant" Tesla (TSLA) references have become "counterproductive," highlighting vulnerabilities rather than imaginative solutions, Houchois argued. While he does not see Tesla as "an existential threat," Houchois thinks owning VW now "looks unattractive" as the German automaker cannot compete on speed or by adding net capital with Tesla, but "needs to address complexity, legacy burdens and governance issues that are much deeper than unions."
'WEAK' TRENDS: Bank of America analyst Curtis Nagle double-downgraded Purple Innovation (PRPL) to Underperform from Buy with a price target of $16, down from $36. The analyst cited the company's "weak" online and wholesale trends heading into the fourth quarter as well as the announcement by Tempur Sealy (TPX) that it is launching a direct competitor to Purple's gel grid-based bed next year. This direct competition could disrupt the company's volume growth, Nagle added.
Peloton
-3.63 (-6.52%)
Now WBD
+0.27 (+1.02%)
Volkswagen
+0.64 (+1.88%)
Tesla
-50.08 (-4.10%)
Acquired by AVGO
+0.76 (+0.61%)
Dell Technologies
-0.37 (-0.66%)
Purple Innovation
-0.98 (-5.03%)
Tempur Sealy
+0.07 (+0.16%)