Check out today's top analyst calls from around Wall Street, compiled by The Fly.
ETSY BOOSTED TO OUTPERFORM AT WEDBUSH: Wedbush analyst Ygal Arounian upgraded Etsy (ETSY) to Outperform from Neutral and raised his price target to $66 from $64, telling investors in a research note that he now sees a critical mass of new initiatives, highlighted by Etsy Ads and free shipping, that can drive stronger GMS growth and margin expansion over time. Arounian said he "particularly likes" the timing with both Etsy Ads and free shipping launching into the holiday season and views the 25% pullback in shares since July highs as a strong buying opportunity.
APPLE TV+ LIKELY TO BE AN EPS DRAG, SAYS GOLDMAN: Goldman Sachs analyst Rod Hall said he thinks Apple (AAPL) plans to account for its one-year trial for TV+ as a $60 discount to a combined hardware and services bundle, which he said effectively moves revenue from hardware to Services. This accounting method will likely result in lower up front ASPs and margins and have a "material negative impact" on EPS, though it should not impact cash flow, said Hall. Assuming 25% gross margin contribution from free trial TV+ revenues, he estimates a 16% negative impact to EPS in fiscal Q1 and a 14% drag on EPS for FY20, said Hall, who is modifying his model to account for this change. He maintained a Neutral rating on Apple shares and lowered his price target on the stock to $165 from $187.
BROADCOM CUT TO HOLD AT LOOP CAPITAL: Loop Capital analyst Cody Acree downgraded Broadcom (AVGO) to Hold from Buy while keeping a $310 price target on the stock after its Q3 report. The analyst noted that the company met expectations, but the management has warned about the "very low-growth environment" expected for the foreseeable future unless the macro backdrop improves. Acree added that Broadcom's end demand appears to have bottomed, but is expected to remain at the "reduced levels" for some time with few new growth drivers, stating that the management has instead pointed to the ongoing trade tensions with China and the efforts in the OEM/distribution channels to clear out inventory.
AUTOMOTIVE STOCKS CUT AT BOFA: BofA/Merrill analyst John Murphy is taking a "more neutral stance" on the automotive sector to reflect the greater market and macro uncertainty and also cites numerous "swing factors" that include trade and technical issues, even though some of the stocks in the auto group have already come down to "trough valuations". The analyst downgraded Asbury Auto (ABG), Adient (ADNT), and Aptiv (APTV) from Buy to Neutral, and also cuts Lithia Motors (LAD) and Sonic Auto (SAH) from Neutral to Underperform.
ACADIA RAISED TO OUTPERFORM AT SVB LEERINK: SVB Leerink analyst Marc Goodman upgraded Acadia (ACAD) to Outperform from Market Perform and raised his price target on the shares to $50 from $21, based on the recently announced results from the Phase 3 HARMONY study in Dementia Related Psychosis, or DRP. Following the announcement of the trial results, he conducted calls with Key Opinion Leaders specialized in treating both Parkinson's and Alzheimer's/Dementia patients, which left him "significantly more positive" on the DRP opportunity, Goodman told investors. The positive physician feedback drove him to increase his peak sales estimate for the DRP indication to about $2B from the $500M-$750M range, Goodman noted.
