Check out today's top analyst calls from around Wall Street, compiled by The Fly.
NVIDIA UPGRADED TO POSITIVE AT SUSQUEHANNA: Susquehanna analyst Christopher Rolland upgraded Nvidia (NVDA) to Positive from Neutral. The analyst previewed its earnings and believes the odds of a guidance miss are high. However, he believes the recent pullback may limit the downside scenario. He likes the potential of the company's 7nm GPU product and the growing A.I. inference opportunity. Rolland maintained his $230 price target on Nvidia shares.
BEST BUY CUT TO NEUTRAL AT BOFA: BofA/Merrill analyst Curtis Nagle downgraded Best Buy (BBY) to Neutral from Buy and cut his price target to $70 from $92 due to expectations for slowing industry growth, difficult comps in key products and cost inflation. Nagle believes Best Buy can grow earnings over the next few years, but at a slower rate and does not believe a premium multiple is warranted.
PERRIGO CUT TO HOLD AT BERENBERG: Berenberg analyst Patrick Trucchio downgraded Perrigo (PRGO) to Hold from Buy and cut his price target for the shares to $72 from $100. Although the key reason to own Perrigo shares remains intact, namely the U.S. government's push to shift more products from prescription to nonprescription, "too much uncertainty in generics has placed us on the sidelines," Trucchio said. Secular challenges in U.S. generics, including increased competition and reduced pricing driven by greater efficiencies at FDA and buyer consolidation, are unlikely to ease, said the analyst. He said Perrigo is not as immune to secular challenges in U.S. generics as he once believed. Further, the company's supply chain issues and poor execution are adding to these challenges, Trucchio contended.
LUMENTUM CUT TO HOLD AT JPMORGAN: JPMorgan analyst Samik Chatterjee downgraded Lumentum (LITE) to Neutral from Overweight and cut his price target for the shares to $50 from $80. Monday's negative pronouncement underscored the challenges likely to be faced by Apple (AAPL) supply chain companies in delivering to investor expectations as Apple continues to prioritize its premium pricing strategy on iPhones relative to volumes, Chatterjee said. Further, excluding the inventory corrections, the analyst believes earnings expectations for Lumentum in future quarters are still likely to be moderated by softer volume expectations for iPhone XR in the medium term, and the broader focus on prioritizing iPhone price increases relative to volumes longer term. As such, Chatterjee thinks investor sentiment on Lumentum shares is "unlikely to materially improve" in the near term.
GOLDMAN CUTS APPLE PRICE TARGET TO $209: Goldman Sachs analyst Rod Hall lowered his iPhone units estimates for Apple after Lumentum reduced its December quarter revenue guidance by 17% at the midpoint citing reduced shipments from "one of its largest 3D sensing customers," which he assumes to be Apple. Overall, he reduced his FY19 total iPhone units estimate by 6% and cut his FY19 revenue forecast for Apple by 3.5%. While Apple pointed to macro and forex driven consumer weakness in emerging markets such as Russia, Brazil, Turkey, and India on its earnings call, Hall said he also suspects China also weakened during the quarter. Given the decreased forecasts, He lowered his price target on Apple shares to $209 from $222 and kept a Neutral rating on the stock.
