Check out today's top analyst calls from around Wall Street, compiled by The Fly.
ARGUS CUTS BOEING TO HOLD: Argus analyst John Eade downgraded Boeing (BA) to Hold from Buy, stating that he believes company management has not been particularly proactive in its response to two fatal crashes involving the 737 Max jet. He thinks the investigation is likely to cap multiples, and that earnings forecasts are likely to decline, as the probe plays out. While his dividend discount model points to a fair value above $460, Eade sees the shares as subject to downward pressure as the investigation continues, he told investors.
JPMORGAN BOOSTS DOMINO'S, CUTS YUM!: Following his firm's Gaming, Lodging, Restaurant & Leisure Management Access Forum, JPMorgan analyst John Ivankoe upgraded Domino's Pizza (DPZ) to Overweight from Neutral while downgrading Yum! Brands (YUM) to Neutral from Overweight. The analyst believes Domino's algorithm to achieve 8%-12% system-wide sales growth remains intact. The stock's recent multiple compression to "slower growing peers" presents an opportunity, Ivankoe tells investors in a research note. He has a $270 price target for the shares. Ivankoe says Domino's Pizza now deserves an Overweight rating more than Yum! Brands. The 9% year-to-date run in Yum shares leaves little upside to estimates, said the analyst. He has a $94 price target for the stock.
FIVE BELOW UPGRADED TO BUY AT LOOP: Loop Capital analyst Anthony Chukumba upgraded Five Below (FIVE) to Buy from Hold and raised his price target to $145 from $120, saying the company's ability to "comp the comp" has been impressive. The analyst cited Five Below's merchandising, store-level execution, and brand awareness improvements, adding that the company's store remodel program, addition of more toys in the product assortment, long square footage growth runway, and potential expansion of its media influencer program can serve as further catalysts for the stock.
IMMUNOGEN CUT TO UNDERWEIGHT AT JPMORGAN: JPMorgan analyst Jessica Fye downgraded ImmunoGen (IMGN) to Underweight from Neutral without a price target. The failure of Forward I is a "meaningful setback" for the mirvetuximab development program, Fye said. The analyst sees an "encouraging profile emerging" for IMGN632, but notes the program remains relatively early-stage. Further, she sees much of the economics going to Jazz Pharmaceuticals (JAZZ) should the company opt-in, likely after pivotal data. Substantially more data will likely be needed for "credit to come back into the stock" for mirvetuximab despite the Forward II readouts expected over 2019, Fye contended. As a result, the analyst expects ImmunoGen shares will be a relative underperformer.
CAMPING WORLD CUT TO NEUTRAL AT GOLDMAN: Goldman Sachs analyst David Tamberrino downgraded Camping World Holdings (CWH) to Neutral from Buy and lowered his price target for the shares to $15 from $28. The analyst said that while the stock seems to have stabilized following a year of underperformance, he no longer expects improvement in results year-over-year into 2019. The recreational vehicle cycle is likely to take a pause, said Tamberrino, who continues to forecast 3% declines over the next few year. Further, Camping World's Gander Outdoors strategy is yet to see returns, and the drag likely continues into 2019, contended the analyst. He cuts his estimates and moves to the sidelines pending visibility into improved results.
