Check out today's top analyst calls from around Wall Street, compiled by The Fly.
UBER BOOSTED TO OVERWEIGHT AT ATLANTIC: Atlantic Equities analyst James Cordwell upgraded Uber Technologies (UBER) to Overweight from Neutral while lowering his price target for the shares to $52 from $55. The ridehailing competitive environment is becoming "increasingly benign" while Uber shares have become more attractively valued, Cordwell told investors in a research note. The analyst expects a better competitive environment to drive accelerating revenue growth and moderating segment losses across fiscal 2019. Further, a new Uber Eats fee structure should augment the company's food delivery economics while enabling "rapid" bookings growth, Cordwell added.
JPMORGAN SEES 50% UPSIDE IN LYFT: After hosting investor meetings with management, JPMorgan analyst Doug Anmuth recommended buying shares of Lyft (LYFT) on the "increasingly rational" ridesharing industry as well as the company's improving profitability. Management's overall tone was very confident around the easing of the competitive environment in U.S. ridesharing, core ridesharing losses improving, ongoing leverage in insurance costs, and the "high-growth, high-margin" revenue opportunities in Lyft Business, Anmuth told investors in a research note. Further and importantly, on its earnings call Thursday night, Uber echoed Lyft's comments on the more favorable operating environment in the U.S., added the analyst. He kept an Overweight rating on Lyft with an $86 price target, suggesting 50% potential upside.
GOLDMAN SACHS SAYS CANADA GOOSE 'COMPELLING': Goldman Sachs analyst Alexandra Walvis upgraded Canada Goose Holdings (GOOS) to Buy from Neutral while lowering her price target for the shares to $47 from $65. In fiscal Q4, Canada Goose's direct-to-consumer sales growth slowed from the elevated growth rates experienced earlier in the year and missed consensus estimates, Walvis noted. While acknowledging that a "high multiple" stock should experience a "significant de-rating" in response to a sales miss, the analyst believes the company's fundamentals are "still strong." The weakness in Q4 was driven in part by strategic changes as the company shipped product and set floors earlier to take advantage of early season demand, added the analyst. Going forward, Walvis sees "several compelling growth drivers" for Canada Goose. As a result, she finds the stock's risk/reward "compelling" at current share levels.
PIPER JAFFRAY CUTS MALLINCKRODT TO NEUTRAL: Piper Jaffray analyst David Amsellem downgraded Mallinckrodt (MNK) to Neutral from Overweight and cut his price target for the shares to $9 from $39. The analyst said last week's developments regarding Acthar in the Medicaid setting, along with as much as a $600M Centers for Medicare & Medicaid Services-related liability, "essentially blew" his prior investment thesis to "smithereens." Further, the analyst does not have a high degree of confidence that there will "not be another proverbial shoe to drop regarding the payer landscape." In addition, he does not see how the separation of the generics business will unlock any value. As such, in a search note titled "Cannot Keep Defending The Indefensible," Amsellem downgraded Mallinckrodt to Neutral from Overweight.
BOFA DOUBLE DOWNGRADES NUCOR TO UNDERPERFORM: BofA Merrill Lynch analyst Timna Tanners double downgraded Nucor (NUE) to Underperform from Buy, to incorporate a lower near-term forecast for prices, especially for sheet and rebar, and a lower 2021-2022 forecast given expectations for a looming glut in steel. Nucor produces three of the products that Tanners thinks will be most hurt by new supply: sheet, rebar, and plate. The analyst also lowered the price target on Nucor shares to $50 from $68.
