Check out today's top analyst calls from around Wall Street, compiled by The Fly.
SHARES 'RISEN TOO FAR TOO FAST': Imperial Capital analyst David Miller downgraded Disney (DIS) to Underperform from In-Line with a price target of $105, down from $107. The analyst also reduced estimates for Disney to reflect a more conservative outlook for theme park volumes than previously assumed as well as lower film ultimates. The shares have "risen too far too fast" after jumping 21% over the last four weeks, Miller told investors in a research note, recommending taking profits at current share levels. The analyst noted that Disney looks like a named that should be "traded" rather than "owned" for now.
HISILICON BAN BENEFITS: KeyBanc analyst John Vinh upgraded Qualcomm (QCOM) to Overweight from Sector Weight with a $105 price target. The analyst believes Qualcomm will benefit from recent export restrictions targeted at HiSilicon. With Huawei unable to procure new silicon internally, Qualcomm's Snapdragon chipset will likely be designed into its flagship 2021 smartphones, Vinh contended. While this will require Qualcomm to obtain a license, the analyst anticipates this will be granted.
COVID-19 IMPACT: Argus analyst John Staszak downgraded Tyson Foods (TSN) to Hold from Buy, saying the company's fiscal year 2020 results will be impacted by COVID-19 as the company incurred costs to reduce volumes, shut down plants, and protect employees' health. Foodservice sales, which account for about 40% of the company's revenue, have also been hurt by restaurant closures, even though Tyson Foods' retail sales are benefiting from the spike in demand that accompanied U.S. shelter-in-place guidelines, the analyst contended.
SELL SIX FLAGS, BUY CEDAR FAIR: Goldman Sachs analyst Stephen Grambling initiated coverage of Six Flags (SIX) with a Sell rating and $22 price target. The analyst noted that Six Flags parks currently have the highest exposure to COVID-19 cases and unemployment trends based on the states it operates in. Further, the company's "stagnating" organic attendance growth requires material reinvestment, limiting flow-through in a recovery, Grambling added. He expects downward revisions to consensus estimates to drive a de-rating of the multiple.
Meanwhile, Grambling initiated coverage of Cedar Fair (FUN) with a Buy rating and $43 price target as the company’s parks currently have near the lowest exposure to COVID-19 cases and unemployment. Further, the analyst believes Cedar Fair focus on events to drive newness should sustain its market share longer-term. He sees potential for a re-rating as fundamentals exceed investor expectations.
The analyst also started coverage of SeaWorld (SEAS) with a Neutral rating and $23 price target. The analyst expects pressure on international tourism to cloud the benefits of the company's EBITDA momentum in 2019 and early 2020 before the pandemic.
BUY BOX: Craig-Hallum analyst Chad Bennett upgraded Box (BOX) to Buy from Hold with a price target of $24, up from $18. The analyst noted that benefiting from the abrupt shift to remote work, the company delivered first quarter results ahead of estimates with revenue growing 12.6% year-over-year, versus 12.1% year-over-year last quarter. Second quarter guidance was also solid with revenue in-line with Bennett's prior estimate and earnings per share materially higher. With 95% recurring revenue, upwards of 70% of bookings coming from existing customers, and minimal SMB exposure, the analyst feels Box is well postured for this environment.
