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MCD, WWE, FL...
11/8/2019 10:11am
McDonald's upgrade, Slack caution headline today's top calls on Wall Street

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

LONGBOW UPGRADES MCDONALD'S TO BUY: Longbow analyst Alton Stump upgraded McDonald's (MCD) to Buy from Neutral with a $227 price target. Though disappointed by Steve Easterbrook's departure, Stump said Chris Kempczinski has played an integral role alongside Easterbrook in driving the company's "impressive" domestic same-store sales recovery and he believes McDonald's "is in good hands" under its new CEO. While the company will face more challenging same-store sales growth comparisons next year, his franchisee contacts are confident more locations offering delivery, recent and upcoming mobile technology improvements and additional remodels can drive 3.5%-4% same-store sales growth in 2020, the analyst added.

CITI SAYS BUY WWE: Citi analyst Jason Bazinet upgraded WWE (WWE) to Buy from Neutral with a price target of $73, down from $79. The stock's risk/reward is "now compelling," Bazinet tells investors in a research note. In a downside case, WWE shares would be worth $48, and in an upside case, the stock would be worth $81, says the analyst. That's $3 of upside for every $1 of downside, he points out.

FOOT LOCKER RAISED TO POSITIVE AT SUSQUEHANNA: Susquehanna analyst Sam Poser upgraded Foot Locker (FL) to Positive from Neutral as he believes its outlook for Q3 and Q4 will be better than anticipated. The analyst said comps were tough in the first half of the year but sales and product allocations have improved and should continue to improve better than previously anticipated. Poser raised his price target to $55 from $39 on Foot Locker shares.

WEDBUSH SEES SLACK FACING 'UPHILL BATTLE': Wedbush analyst Daniel Ives initiated coverage of Slack Technologies (WORK) with an Underperform rating and $14 price target. While Slack has done a "commendable" job getting to this juncture, Ives tells investors in a research note that he believes the next step of growth will be a "major uphill battle" as the Street continues to overestimate growth in 2020 and beyond, which speaks to his more negative thesis on this name heading into the next 12 to 18 months and to his more bearish view at current levels.

JPMORGAN CUTS ALBERMARLE TO UNDERWEIGHT: JPMorgan analyst Jeffrey Zekauskas downgraded Albemarle (ALB) to Underweight from Neutral with a price target of $60, down from $68. Albemarle, currently trading at 11.2 times estimated EBITDA for 2020, is overvalued, Zekauskas tells investors in a research note. The growth rate of global electric vehicles is slowing and lithium supply is accelerating, contends the analyst. Prices in the lithium industry have declined sharply due to oversupply conditions, says Zekauskas, who thinks Albemarle's long-term contracts are likely to be renegotiated downward.

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