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EA, DISCA, BAC...
10/22/2019 11:10am
EA downgrade, Discovery upgrade among today's notable analyst calls

Check out today's top analyst calls from around Wall Street, compiled by The Fly.

BARCLAYS CUTS ELECTRONIC ARTS TO EQUAL WEIGHT: Barclays analyst Deepak Mathivanan downgraded Electronic Arts (EA) to Equal Weight from Overweight with a price target of $99, down from $104. The shares are currently trading below the middle of their historical valuation range, but the discount is justified, Mathivanan told investors in a research note. The analyst expects the majority of EA's earnings growth next year will come from buybacks rather than business fundamentals. After a string of disappointing results from the last Star Wars title, Battlefield V and Anthem, investors will need to see a couple of successful title releases before Electronic Arts' multiple reverts back to its historical mean, contended Mathivanan.

IMPERIAL BOOSTS DISCOVERY TO OUTPERFORM: Imperial Capital analyst David Miller upgraded Discovery (DISCA) to Outperform from In-Line with a price target of $34, up from $29. Amidst changes in the Media sector, and against "various levels of turmoil" within many of the company's peers, Discovery has emerged "as one of the cleaner stories in the sector," Miller told investors in a research note. Investors seems to have forgotten that, beginning September 24, 2020, Discovery will have pan-European rights to the summer Olympic games in Tokyo, added the analyst. He sees multiple catalysts for the shares and recommends buying the stock ahead of the company's Q3 earnings call on November 7.

ATLANTIC EQUITIES UPS BANK OF AMERICA TO OVERWEIGHT: Atlantic Equities analyst John Heagerty upgraded Bank of America to Overweight from Neutral with a price target of $36, up from $33.

NOMURA RAISES DROPBOX TO BUY: Nomura Instinet analyst Christopher Eberle upgraded Dropbox (DBX) to Buy from Neutral with a price target of $25, up from $24. The company is nearing an inflection in revenue after six quarters of deceleration as a public company and its current valuation is attractive, Eberle told investors in a research note. The analyst also believes Dropbox has laid the foundation for guiding investors to more meaningful key performance indicators, such as annual recurring revenue, and he expects more disclosure around these numbers in the coming months.

BOFA DOWNGRADES TEXTRON TO NEUTRAL: BofA/Merrill analyst Ronald Epstein downgraded Textron (TXT) to Neutral from Buy with a price target of $50, down from $78. The analyst stated that he was previously more constructive on signs of a recovery in the business jet end market along with stronger company operations, but now sees a "softening" end market and a more "lackluster" operating recovery. Epstein added that the aftermarket could support Aviation margins and notes that Textron has a clean balance sheet, but with higher risks to earnings, he expects the stock to trade below the historical average earnings multiple.

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