Check out today's top analyst calls from around Wall Street, compiled by The Fly.
NOMURA UPGRADES INTEL TO BUY: Nomura Instinet analyst Romit Shah upgraded Intel (INTC) to Buy from Neutral with an unchanged price target of $50. The analyst, who admitted he isn't sure if this is "just a tactical call for the remainder of 2018 or an idea that's longer lasting," said he believes Intel is a buy at current share levels. He said Intel is likely the only company in his semiconductor coverage universe that he sees raising estimates in October or November. Intel will remain supply constrained until the ramp of 10nm, which sets the company up for "at least" seasonal revenue growth and stronger gross margins through Q2 of 2019, Shah added. He believes Intel's focus on production of Xeon and core processors will be positive for earnings and gross margins. In late morning trading, Intel was higher by just over 1%.
RBC UPGRADES CHIPOTLE TO OUTPERFORM: RBC Capital analyst David Palmer upgraded Chipotle (CMG) to Outperform from Sector Perform and raised his price target to $510 from $450. The analyst noted that while Q3 earnings may be "lackluster", he expects comps to improve from 4% to 6% through the second half of FY19 and raises his FY20 EPS view to $16.30 from $15.86 on implied 3-turn multiple increase to 31-times forward earnings. Palmer further cites "significant upside" from the incremental menu and digital/delivery opportunities and said he believes the recent pullback in the stock price has created an "acceptable" entry point for investors. In late morning trading, Chipotle was higher by 1.3%.
TIGRESS UPGRADES AT&T TO BUY: Tigress Financial analyst Ivan Feinseth upgraded AT&T (T) to Buy from Neutral, saying the upcoming launch of its high-speed 5G wireless communication network and the integration of Time Warner's content "creates a significant investment opportunity." AT&T will "significantly benefit from its merger with Time Warner creating one of the media industry's largest and most dynamic companies," Feinseth said.
BOFA CUTS EBAY TO NEUTRAL: BofA/Merrill analyst Justin Post downgraded eBay (EBAY) to Neutral from Buy and cut his price target to $33 from $44, telling investors it is underperforming the eCommerce sector with "no easy fixes." Post noted that Paypal's (PYPL) Q3 earnings release disclosed volumes associated with eBay only grew 3%, versus 6% in Q2, and the company said it expects eBay to communicate softness in the Marketplaces business in its Q4 guidance. The analyst believes competitor's targeting value shoppers, such as Walmart (WMT), are having an impacting eCommerce volumes and has reduced his multiple for eBay to reflect a lower growth profile. In late morning trading, eBay was lower by 1.1%.
CITI CUTS BRISTOL-MYERS TO NEUTRAL: Citi analyst Andrew Baum downgraded Bristol-Myers Squibb (BMY) to Neutral from Buy and lowered his price target for the shares to $57 from $62. The downgrade largely reflects further likely "lowering of floor" Opdivo, Yervoy, and earnings estimates from a base that is already materially below the consensus, Baum said. The analyst anticipates an "extraordinary" treatment effect from Keytruda in Merck's (MRK) Keynote-426 trial in renal cell carcinoma given the statistical significance for both progression-free survival and overall survival at the first interim analysis. In late morning trading, Bristol-Myers Squibb was lower by 5.5%.
