Check out today's top analyst calls from around Wall Street, compiled by The Fly.
'GAME-CHANGER' HEADSET LAUNCH: Bank of America analyst Wamsi Mohan upgraded Apple (AAPL) to Buy from Neutral with a price target of $210, up from $160. The analyst expects Apple to introduce an augmented reality/virtual reality headset, either by the end of 2022 or early 2023. This technology is a "game-changer" as it will enable many new applications which will require high performance hardware and higher access speeds, Mohan told investors in a research note. The analyst also expects a stronger iPhone upgrade cycle in fiscal 2023 driven by the need for higher connectivity where "AR becomes the killer app for 5G." Mohan models higher growth in Services revenue as he expects Apple to be able to charge more for more immersive AR/VR enabled apps.
RISKS ON THE HORIZON: Daiwa analyst Jairam Nathan downgraded General Motors (GM) to Neutral from Outperform with an unchanged price target of $65, and cut Ford's (F) rating to Underperform from Neutral with a price target of $19, up from $16. The analyst downgraded the U.S. auto sector rating to Neutral from Positive saying "there are risks in the horizon that could undermine valuations." The risks include slowing growth in China, the transition to electric vehicles hurting margins and cash flow, a flattening yield curve and deteriorating consumer confidence and vehicle buying conditions, Nathan told investors in a research note.
MOVING TO THE SIDELINES: JPMorgan analyst Sterling Auty downgraded Adobe (ADBE) to Neutral from Overweight with an unchanged price target of $680. The analyst cited a combination of limited upside to price target, valuation in light of risk that interest rates rise in 2022, adjusted discount rates for the current rate environment and re-evaluation of reasonable cash flow expectations.
Auty also downgraded
Additionally, the analyst upgraded Avalara (AVLR) and Crowdstrike (CRWD) to Overweight from Neutral with price targets of $190 and $255, respectively.
MORE MUTED UPSIDE: Evercore ISI analyst Amit Daryanani downgraded Dell Technologies (DELL) to In Line from Outperform with an unchanged price target of $63. Following the 60% appreciation year-to-date, the analyst sees incremental upside being "more muted" amid a moderating PC market. While Daryanani expects 2022 to be a year of sustained tailwinds, "not all boats will rise equally this time around." He anticipates an uptick in on-premise and hybrid spend in 2022, notably across networking and storage, but expects PCs to moderate.
STREAMING WARS GO GLOBAL: Macquarie analyst Tim Nollen downgraded Comcast (CMCSA; CMCSK) to Neutral from Outperform with a price target of $52, down from $65, saying he is more cautious on network media as the "streaming wars go global." Looking ahead to 2022, the analyst is favoring ad agencies over media networks, arguing that the ad market is strong and agency stocks tend to perform well in early rate tightening cycles. On Comcast in particular, Nollen said momentum has faded in cable network subscribers, which could continue into 2022, while recovery in the parks and theatrical businesses could be delayed with COVID variants and Peacock is "still in investment mode."
RALPH LAUREN CUT TO SELL: Goldman Sachs analyst Brooke Roach double downgraded Ralph Lauren (RL) to Sell from Buy with a price target of $110, down from $142. The analyst sees "some slowdown in brand health indicators" which she expects will be a headwind to Ralph Lauren's near- and medium-term growth. A lack of top line brand momentum poses risk to the company's leverage and margin expansion, Roach tells investors in a research note. The analyst says Ralph lacks an "idiosyncratic catalyst" as it approaches a tougher demand and cost environment.
Apple
+1.23 (+0.70%)
General Motors
-0.35 (-0.59%)
Ford
-0.4 (-1.96%)
Adobe
-25.955 (-3.94%)
SolarWinds
-0.69 (-4.76%)
PTC
-3.53 (-2.88%)
Cloudflare
-7.83 (-5.40%)
Akamai
-2.05 (-1.78%)
Avalara
-3.18 (-2.22%)
Crowdstrike
-2.29 (-1.15%)
Dell Technologies
-1.14 (-2.05%)
Comcast
-0.2 (-0.42%)
Comcast
+ (+0.00%)
Bath & Body Works
+0.49 (+0.67%)
Ralph Lauren
-4.05 (-3.37%)