Check out today's top analyst calls from around Wall Street, compiled by The Fly.
WELLS FARGO CUTS NETFLIX TO UNDERPERFORM: Wells Fargo analyst Steven Cahall downgraded Netflix (NFLX) to Underperform from Market Perform with a price target of $265, down from $308. The analyst analyzed Netflix's cash estimates and has conviction in his 2019-2025 cumulative free cash flow forecast that's $18bn below consensus. "If we're right, it brings the cash returns of the business into debate," Cahall told investors in a research note. He thinks Netflix can achieve the Street's subscriber growth expectations, but he believes "those subs will be more expensive than investors realize."
MORGAN STANLEY BOOSTS NVIDIA TO OVERWEIGHT: Morgan Stanley analyst Joseph Moore upgraded Nvidia (NVDA) to Overweight from Equal Weight with a price target of $259, up from $217. Both of Nvidia's gaming and data center segments fell short of expectations over the course of 2019, but investments made this year in the gaming business should pay off in 2020 while recent Cloud commentary indicates that the inflection in "conversational AI" is real and new Nvidia products should ease concerns about competition in the data center segment, Moore told investors. Although he expects a tough semiconductor environment more broadly, and believes the stock is expensive on near-term earnings, Moore sees upside from here for Nvidia shares, he concluded.
UBS RAISES HASBRO TO BUY: UBS analyst Arpine Kocharyan upgraded Hasbro (HAS) to Buy from Neutral with a $117 price target. The analyst noted that expectations for the company have seen a "meaningful reset" after a weak Q3 results, but he sees upside in the stock thanks to the better than expected revenue and the cost synergies from Entertainment One acquisition, along with the momentum of its gaming portfolio. Kocharyan added that while the current Hasbro valuation is pricing in a "lackluster" holiday season, his point-of-sales checks indicate a Q4 pickup.
WELLS FARGO UPS UGG-MAKER DECKERS TO OUTPERFORM: Wells Fargo analyst Tom Nikic upgraded Deckers Brands (DECK) to Outperform from Market Perform with a price target of $195, up from $177. The analyst noted the stock's upside guidance potential amid improving weather outlook for the 2nd half of FY20 and also cited the company's "compelling" portfolio structure along with its "cash cow" UGG brand. Nikic added that Deckers stands to benefit from lean inventory levels at retail as well as the forecast of below-average temperatures for the Black Friday / Cyber week shopping periods.
BARCLAYS CUTS MOLSON COORS TO EQUAL WEIGHT: Barclays analyst Lauren Lieberman downgraded Molson Coors (TAP) to Equal Weight from Overweight with a price target of $54, down from $59. Following "too many disappointments for too long," improved revenue trends will need to be apparent before investors are willing to re-engage with the story, Lieberman told investors in a research note. As a result, the analyst feels a "wait and see" stance in warranted with respect to Molson Coors shares.
