Check out today's top analyst calls from around Wall Street, compiled by The Fly.
DEUTSCHE BANK STARTS APPLE AT HOLD: Deutsche Bank analyst Jeriel Ong Wednesday night initiated coverage of Apple (AAPL) with a Hold rating and $205 price target. The analyst sees potential for 2019 iPhone cycle "lull" ahead of 5G iPhones in 2020. And while other hardware is transitioning to growth, namely Watch and AirPods, "this is more of the slow-and-steady variety," Ong told investors in a research note. Further, Apple's Services business "increasingly faces a law of large numbers dynamic," added the analyst. Taken together, Ong sees a "balance reward profile relative to the risks" with respect to Apple shares.
JEFFERIES SAYS AMARIN WOULD JUMP ON PATENT SETTLEMENT: Shares of Amarin (AMRN) are up 42% year-to-date as evidence of Vascepa's sales execution and potential "continues mounting every week," Jefferies analyst Michael said. After meeting with management, the analyst said the company continues to be bullish on accelerating market penetration and sales over the coming quarters. Further, management noted the window for the FDA to confirm any advisory panel is narrowing, given the priority review and the action date of September 28. With no panel, shares of Amarin move higher for a "straighter shot towards clean approval," Yee contended. Regarding patent litigation, a court date is set for January 2020, the analyst adds. If any settlement comes, the stock would move "quickly higher" towards $25-plus, according to Yee. He kept a Buy rating on Amarin with a $30 price target.
GOLDMAN LOWERS TESLA PRICE TARGET: Goldman Sachs analyst David Tamberrino noted that Tesla (TSLA) shares have recently been bouncing back amid optimism about near-term deliveries. While he thinks Q2 should be fine and the company is likely to achieve volumes near consensus forecasts, he thinks volume estimates for the second half of the year and beyond look high considering he sees fewer levers left for the company to pull given that Tesla has already released lower priced Model 3 variants, introduced leasing and right-hand drive orders have started. Additionally, another step-down in the U.S. federal tax credit for Tesla vehicles is coming on July 1, Tamberrino noted. He continues to see the company achieving below 1M total units as his base case by 2025, noted the analyst, who keeps a Sell rating on Tesla and lowered his price target on the stock to $158 from $200 as he sees lower odds that the company hits his upside volume scenarios. Tamberrino expects Tesla shares to get back to being on a downward path as it becomes clearer that sustainable demand is below expectations, he concluded.
SHOPIFY DOWNGRADED AT CIBC, TARGETS RAISED: CIBC analyst Todd Coupland downgraded Shopify (SHOP) to Neutral from Outperformer while raising his price target for the shares to $350 from $260. While encouraged by the company's product announcements at Wednesday's conference, the analyst believes the upside seen in his investment thesis has now been priced into the stock. He recommended looking for another opportunity to re-enter the stock.
Piper Jaffray analyst Michael Olson also raised his price target for Shopify to $286 from $216 following the company's Unite conference, and kept a Neutral rating on the shares. Rosenblatt analyst Mark Zgutowicz, who kept a Buy rating on Shopify, raised his price target on shares to $395 from $295 after the company announced the Shopify Fulfillment Network, which he called "yet another ace up its sleeve" that removes the "last major pain point" for merchants.
PIPER CUTS HERSHEY TO UNDERWEIGHT: Piper Jaffray analyst Michael Lavery downgraded Hershey (HSY) on Wednesday night to Underweight from Neutral while raising his price target for the shares to $125 from $122. Hershey has a U.S.-centric portfolio with generally stable sales and earnings growth, but the valuation at current share levels "now looks inconsistent with consensus expectations," Lavery said. The stock trades at a "historically high premium" relative to U.S. consumer peers, despite consensus earnings growth expectations that are more in-line with peers, contended the analyst. He pointed out that Hershey shares trade at a 70% premium to Kellogg (K) even though Hershey's consensus earnings growth outlook is in-line with Kellogg's.
