Check out today's top analyst calls from around Wall Street, compiled by The Fly.
JPMORGAN BOOSTS BEYOND MEAT TO OVERWEIGHT: JPMorgan analyst Ken Goldman upgraded Beyond Meat (BYND) to Overweight from Neutral, citing the potential to acquire new foodservice customers, continued strength in measured data and valuation. While Goldman noted that the secondary offering spooked investors, founder and CEO Ethan Brown trimmed just a tiny portion of his holdings. The analyst thinks the stock is appealing once again with cash-on-hand likely to exceed $300M by the end of the third quarter, and said another guidance raise is potentially ahead.
JPMORGAN ALSO CUTS HAIN TO UNDERWEIGHT: JPMorgan analyst Ken Goldman downgraded Hain Celestial (HAIN) downgraded to Underweight from Neutral and lowered his price target to $18 from $23, citing Brexit and currency risk, organic sales risk, the potential for divestitures to raise less cash than expected and valuation. Goldman said he is not negative on Hain's strategy, but feels that a number of near-term headwinds may not properly be reflected in the stock price. Additionally, Goldman said he can no longer recommend paying a premium for a company likely to sport margins and returns well below average for a long time.
CITI DOWNGRADES HP TO NEUTRAL: Citi analyst Jim Suva downgraded HP Inc. (HPQ) to Neutral from Buy and lowered his price target to $21 from $25 due to mixed data points. The analyst said positive PC data points offset mixed Print data points and offer limited positive catalysts. Suva expects stronger near-term PC results due to demand pull through ahead of Q2 tariffs combined with easing chip component shortages, but notes a large partner of HP reduced laser supply expectations "drastically." Suva sees macro risks pressuring commercial purchases in PCs and Print as we move into 2020 and believes upside to estimates and multiples is limited.
PIPER RAISES ABBVIE TO OVERWEIGHT: Piper Jaffray analyst Christopher Raymond upgraded AbbVie (ABBV) to Overweight with a price target of $80, saying that while he remains negative on the company's decision to acquire Allergan (AGN), he believes that a bottom on the stock has been found around $66. The analyst added that he also has concerns about tthe "various pressure points" on AbbVie's Humira business, but he also sees "great opportunity" for the company to leverage its successful launches of Skyrizi and Rinvoq, along with anticipating a "rather durable" Botox cosmetic franchise going forward.
BMO UPS PILGRIM'S PRIDE TO OUTPERFORM: BMO Capital analyst Kenneth Zaslow upgraded Pilgrim's Pride (PPC) to Outperform from Market Perform and raised his price target to $36 from $31, citing the management's implementation of a "successful execution" of its chicken strategy. The analyst also pointed to the improvement in "underlying chicken fundamentals" around the shortage of U.S. beef production, record high levels in China hog prices, and a "more normal" promotional activity that includes increased features with McDonald's (MCD) upcoming chicken promotion -- its first in over a year.
ROSENBLATT STARTS SQUARE AT NEUTRAL: Rosenblatt analyst Ken Hill initiated Square (SQ) with a Neutral rating and $68 price target. Compared to PayPal (PYPL), he views Square as having more work ahead to evolve the business model and capabilities, while trading at what he views as a full valuation. Investors seem to have some real questions around margin potential and forward growth trajectory following the company's Q2 report, especially given the sale of Caviar, which Hill called "a move we actually like." Hill, who contends that Square's ultimate success will be most directly influenced by Cash App performance, called the stock's current valuation "a stumbling block we just can't get over." Hill also initiated PayPal with a Buy rating and $126 price target, citing his view that the company is a "steady and strong grower," trading at a reasonable price.
