Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BAUSCH UPGRADED TO OVERWEIGHT AT PIPER: Piper Jaffray analyst David Amsellem upgraded Bausch Health Companies (BHC) to Overweight from Neutral and raised his price target for the shares to $27 from $22. The analyst said that while he's been "unrelentingly negative" on the company for years, it is time to "turn the page following a closer look at the business." Management has positioned Bausch not only for longer-term EBITDA stability, but potentially "meaningful" growth, Amsellem tells investors in a research note. While the company is still highly levered, a favorable maturity schedule gives it "ample breathing room," and strong visibility into EBITDA stability/growth should enable the company to "chip away significantly at debt levels in the coming years," says the analyst. He thinks Bausch Health's valuation is positioned for multiple expansion over time.
SIRIUS UPGRADED TO OVERWEIGHT AT JPMORGAN: JPMorgan analyst Sebastiano Petti upgraded Sirius XM Holdings (SIRI) to Overweight from Neutral ahead of the close of the company's Pandora Media (P) acquisition. The analyst raised his price target for the shares to $7 from $6. Sirius XM shares are attractively following the 25% pullback from the 2018 highs, Petti told investors in a research note. He looks for the company's "strong results year-to-date to persist" in Q4 and 2019 and believes the Pandora acquisition "can augment growth in new and existing segments."
WELLS FARGO UPGRADED TO SECTOR PERFORM AT RBC: RBC Capital analyst Gerard Cassidy upgraded Wells Fargo (WFC) to Sector Perform from Underperform, but lowered his price target to $48 from $50. The analyst noted that his prior downgrade was related to expectations that the Federal Reserve's Cease & Desist Order would "seriously hamper" the bank's ability to operate in an "otherwise healthy banking environment." At current prices however, Cassidy contended that the stock "fully discounts" the bank's regulatory risks, also raising his Q4 earnings estimate by 8c to $1.28.
CBS UPGRADED TO OVERWEIGHT AT STEPHENS: Stephens analyst Kyle Evans upgraded CBS (CBS) to Overweight from Equal Weight as he believes investor sentiment is poised to improve on the name in 2019 and that the company can continue to post solid results driven by underlying unit growth and stronger pricing. While the threat of a potential Viacom (VIA, VIAB) transaction remains, Evans also sees "a decent chance" CBS will become an acquisition target itself as the OTT and streaming video markets become increasingly competitive, he told investors. Evans kept a $58 price target on CBS shares.
HOLOGIC CUT TO UNDERWEIGHT AT MORGAN STANLEY: Morgan Stanley analyst David Lewis downgraded Hologic (HOLX) to Underweight from Equal Weight, stating that his checks with about 40 medspas highlighted market saturation of body sculpting devices. This, coupled with Allergan's (AGN) recent announcement of discounting CoolSculpting to drive its installed base, suggests Hologic's acquisition of Cynosure may not be as accretive as expected, Lewis told investors. Additionally, in the company's Surgical segment, he expects NovaSure will continue to lose share as procedures shift to the office where NovaSure is less popular given periprocedural pain. Given both of these views, Lewis views Hologic as less attractive relative to peers and cut his price target on the stock to $39 from $44.
