Check out today's top analyst calls from around Wall Street, compiled by The Fly.
GOLDMAN BOOSTS GENERAL DYNAMICS TO BUY: Goldman Sachs analyst Noah Poponak upgraded General Dynamics (GD) to Buy from Neutral with an unchanged price target of $204. The valuation of General Dynamics relative to its defense peers has moved to the low-end of historical ranges, Poponak told investors in a research note. The analyst thinks higher Gulfstream margins, the G500/600 ramp, and improving free cash flow can act as catalysts to reverse sentiment on shares of General Dynamics.
WEDBUSH CUTS TESLA TARGET TO $230: Wedbush analyst Daniel Ives lowered his price target on Tesla (TSLA) shares to $230 from $275 citing his reduced confidence in the company's ability to hit its 2019 unit guidance given what he calls "major concerns" around the underlying demand for the Model 3 in the U.S. Mixed signals about Model 3 demand "are becoming incrementally more challenging," said the analyst, who believes that the company should be focused on shoring up demand for the Model 3 rather than expanding into insurance, robotaxis, and "other sci-fi projects/endeavors." Ives, who calls the electric carmaker's second half of the year profitability targets "a Kilimanjaro-like uphill climb," kept a Neutral rating on Tesla shares.
HSBC CUTS APPLE PRICE TARGET TO $174: HSBC analyst Erwan Rambourg lowered his price target for Apple (AAPL) to $174 from $180 while maintaining a Reduce rating on the shares. China "remains an issue and we don't see it going away anytime soon," Rambourg told investors in a research note. Further, company communication around the Services unit "cannot compensate for the reality of a shrinking core iPhone product," added the analyst. Rambourg cited renewed China growth risk and tariffs for his decreased price target.
MORGAN STANLEY REJIGGERS AIRLINE RATINGS: Morgan Stanley analyst Rajeev Lalwani upgraded United Continental (UAL) to Overweight from Equal Weight, downgraded Delta Air Lines (DAL) to Equal Weight from Overweight, and downgraded American Airlines (AAL) to Underweight from Equal Weight as he believes diverging paths may emerge for legacy airlines heading into 2020. United has well executing its mid-continent strategy and he sees that continuing with its loyalty program and largely stable costs leading him to believe its 2020 EPS target has a higher probability of being met, Lalwani tells investors in his sector shake-up note. Meanwhile, the analyst thinks American faces the most labor risk within the group, further compounded by rising jet fuel prices. Delta shares have outperformed year-to-date with a 10% advance and his refreshed 2020 estimates are moderately below consensus, Lalwani stated in explanation of his downgrade of that stock. The analyst raised his price target on United shares to $110 from $101, lowered his target on American to $26 from $40 and trimmed his price target on Delta to $61 from $62.
UBS CUT DEUTSCHE BANK TO SELL: UBS downgraded Deutsche Bank (DB) to Sell from Neutral and lowered its price target for the shares to EUR 5.70 from EUR 7.80. The bank is facing limited strategic options and its operating conditions are unlikely to improve in the near term amid intense competition, UBS told investors in a research note.
