Check out today's top analyst calls from around Wall Street, compiled by The Fly.
JPMORGAN BOOSTS KARYOPHARM TO OVERWEIGHT: JPMorgan analyst Eric Joseph upgraded Karyopharm Therapeutics (KPTI) to Overweight from Neutral and doubled his price target for the shares to $16 from $8. The analyst conducted a U.S. physician survey assessing Xpovio anticipated use in the approved indication of penta-refractory myeloma, as well as expectations around use in earlier-line settings. The survey of 15 doctors data show favorable reception to Xpovio's clinical profile, with 75% respondents intending to write Xpovio for PR-MM within the next 12 months, Joseph said. Importantly, nearly all respondents described the side-effect profile as manageable, which is "very encouraging," added the analyst. He sees a favorable reward/risk profile for Karyopharm shares at current levels.
WELLS FARGO CUTS ZIONS TO MARKET PERFORM: Wells Fargo analyst Mike Mayo downgraded Zions Bancorp (ZION) to Market Perform from Outperform and lowered his price target for the shares to $50 from $62. The company's weaker than expected Q2 results help illustrate why larger and more diversified banks are preferable investments in the current environment, Mayo said. Zions faces above average exposure to interest rate driven revenues without offsets commensurate with some of its larger peers, contends the analyst. He believes estimates for Zions need to come down and that the bank's and efficiency gains are likely to be offset by rate pressures. Mayo's top pick is Citi (C).
SNAP UPGRADED AT STIFEL, INITIATED AT ROSENBLATT: Stifel analyst John Egbert upgraded Snap (SNAP) to Buy from Hold and raised his price target to $17 from $13 ahead of its Q2 earnings, saying the company's sales reorganization efforts were already reflected in its prior guidance and the daily active user checks for the quarter appear to be positive. The analyst contended that if the impact of the reorganization is limited, the management's prior guidance may prove to be conservative, adding that Snap's advertising products with large brands and direct response advertisers appear to be gaining traction.
Rosenblatt analyst Mark Zgutowicz started Snap with a Buy rating and $18 price target. Snap's current average revenue per user levels are well below social media peers, which provides room to "comfortably double" by 2023, Zgutowicz said. In the near-term, the analyst believes the shares should rise on "modest tailwinds" from new advertising products and video content.
REALREAL INITIATED AT MULTIPLE FIRMS: UBS analyst Eric Sheridan started RealReal (REAL) with a Buy rating and $30 price target. The analyst believes online penetration for consignment is in the "early innings" and that RealReal is exposed to "key industry secular trends." Further, the company's marketplace model is unique in that the same consumer is increasingly playing a role on both sides, Sheridan said.
Stifel analyst Scott Devitt started RealReal with a Buy rating and $30 price target. The company is the leader in the online luxury consignment space, an "attractive pocket" of the e-commerce landscape, Devitt said. He believes RealReal provides a "superior marketplace experience highlighted by elevated consignor service and buyer trust." The company's end-to-end service model removes much of the friction in the consignment process for sellers and drives strong supply acquisition, contended Devitt.
KeyBanc analyst Edward Yruma started coverage of RealReal with an Overweight rating and a $31 price target. The analyst believes RealReal is driving "real innovation" at the nexus of the circular economy, luxury, and e-commerce, and has "strong competitive advantages," particularly in supply, that differentiate it from peers. Further, Yruma thinks it can sustain 25%-plus Gross Merchandise Volume growth and attain profitability by 2021/2022.
