Check out today's top analyst calls from around Wall Street, compiled by The Fly.
HP DOUBLE DOWNGRADED TO UNDERPERFORM AT BOFA: BofA analyst Wamsi Mohan downgraded HP Inc. (HPQ) two notches, to Underperform from Buy, following the company's Q1 report Wednesday night. His prior thesis was built on expectations for stability in high margin print supplies, which he now has lower confidence in, he told investors. Mohan sees volatility in supplies growth leading to lower confidence in predictability and he thinks the company's unchanged guidance looks high given the shortfall in supplies. He also worries about cash flow headwinds from higher restructuring costs and investments while calling out the risk of an incremental PC slowdown. Mohan cut his price target on HP Inc. shares to $19 from $30.
BOOKING HOLDINGS CUT TO PERFORM AT OPCO: Oppenheimer analyst Jed Kelly downgraded Booking Holdings (BKNG) to Perform from Outperform. While the analyst agrees with management's strategy to accelerate share gains under softer European macro by investing in alternative accommodations, payments, branding, and loyalty programs, he believes challenges stabilizing room night deceleration supports bears' view that generating profitable growth is becoming increasingly difficult as online travel matures, and a tougher macro back-drop further limits visibility on inflecting to a sustainable near-term reacceleration. Kelly also sees the multiple capped on muted top-line trends, and too many near-term headwinds to garner GARP investor interest.
BAIRD CALLS TESLA 'FRESH PICK': Baird analyst Ben Kallo elevated Tesla to Fresh Pick as he thinks investor pessimism on Model 3 demand is overblown. He also believes weak Q1 deliveries, due to timing, are priced into the stock at current levels. The analyst admits it is unclear what the company may announce later today, but he thinks an announcement can serve as a catalyst to improve sentiment and drive shares higher. Kallo reiterated his Outperform rating and $465 price target on Tesla shares ahead of Wednesday's announcement of "news," as promised by CEO Elon Musk.
HAIN CELESTIAL UPGRADED TO OVERWEIGHT AT JPMORGAN: JPMorgan analyst Ken Goldman upgraded Hain Celestial (HAIN) to Overweight from Neutral and raised his price target for the shares to $20 from $15. Following the company's "compelling" investor day, the analyst has increased confidence in Hain's ability to drive margin growth over the next few years. In a packaged food universe where sustainable EBITDA growth is "increasingly hard to come by," Hain Celestial's "potential stands out to us," Goldman told investors in a research note.
CERNER CUT TO UNDERWEIGHT AT MORGAN STANLEY: Morgan Stanley analyst Ricky Goldwasser downgraded Cerner (CERN) to Underweight from Equal Weight and cut his price target on the shares to $47 from $68 citing the risk he sees risk to Cerner's long-term growth trajectory given his view that the core EHR market is saturated. The analyst, who assumes 6%-7% top-line growth in 2019-2021, said Cerner shares continue to trade at a premium to comparable software companies despite the fact that its growth opportunities have slowed. Providers' healthcare IT spending priorities are shifting to services and solutions and Goldwasser thinks Cerner will need to sharpen its capabilities as the market evolves toward leveraging data and real-time analytics, he added.
