Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BOFA PAIRS HCA UPGRADE WITH ANTHEM DOWNGRADE IN HEALTHCARE RATINGS SHAKE-UP: BofA Merrill Lynch analyst Kevin Fischbeck upgraded HCA Healthcare (HCA) to Buy, but cut his rating of Anthem (ANTM) to Neutral as part of a research note into healthcare facilities and managed card. The analyst notes that the recent trend of elevated utilization, with few catalysts in the coming six months, should benefit hospitals but hurt managed care organizations. Fischbeck is especially cautious on Anthem based on its outsized exposure to the commercial business, he noted.
UBS SAYS SELL CIENA: UBS analyst Tejas Venkatesh downgraded Ciena (CIEN) to Sell from Neutral with a price target of $31, down from $43. Operational expectations are too high following the company's two years of solid top-line outperformance, Venkatesh tells investors. Based on channel checks, the analyst believes Ciena's revenue guidance for the January quarter will miss consensus. Venkatesh is concerned about slowing Facebook (FB) spending, which was 13% of the company's revenue last quarter based industry checks, as well as spending deceleration at large tier 1 telcos such as AT&T (T).
NEEDHAM SAYS BUY TRADE DESK: Needham analyst Laura Martin upgraded Trade Desk (TTD) to Buy from Hold with a $325 price target. The analyst cites the rising value of advertising reach, with GroupM estimating that demand of U.S. ads will rise by 10%, including a $10B contribution from political ads during an election year. Concurrently, Martin notes that ad impressions will decline, as more viewing hours move outside of linear TV to subscription-video-on-demand services. The analyst also sees Trade Desk being well positioned as a "pure play" on digital advertising growth, citing a Kantar survey of CMOs suggesting that over 80% of marketers intend to increase their online video advertising investment.
JEFFERIES CUTS TELADOC TO HOLD AMID HIGH EXPECTATIONS: Jefferies analyst David Windley downgraded Teladoc (TDOC) to Hold from Buy with an unchanged price target of $80. Revenue growth is Teladoc's "most important metric" and he sees risk that the current consensus organic growth forecast for FY20 of 25% could be difficult to achieve given it is based on high expectations for paid-member growth and he sees an increasingly aggressive competitive landscape, Windley tells investors. He also believes management is likely to be conservative with FY20 guidance, Windley noted.
MORGAN STANLEY NOT BULLISH ON TESLA, BUT RAISES "BULL CASE" ESTIMATE: Morgan Stanley analyst Adam Jonas raised his "bull case" for Tesla (TSLA) shares to $500 from $440 while keeping an Equal Weight rating on the name with a $250 price target. Tesla closed Thursday down $2.66 to $330.37. The analyst's higher bull case reflects the potential success of the Cybertruck and incorporates the "bull case potential" of China. However, Jonas' "base case" forecast of $250 per share remains unchanged, which he notes is fairly square at the midpoint of his $500 bull case and $10 bear case. "To be clear, we are not bullish on Tesla longer term," Jonas tells investors in a research note. He believes that over time, Tesla could be perceived by the market more and more like a traditional auto manufacturer. The analyst says that while he's prepared for a potential surge in sentiment through the first half of 2020, he questions the sustainability.
