Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BALANCED RISK/REWARD: Goldman Sachs analyst Robert Jones downgraded Livongo Health (LVGO) to Neutral from Buy with a price target of $70, up from $48. Since its initial public offering on July 26, 2019, Livongo has outperformed the market by 92% as management has "over delivered relative to already healthy expectations," Jones told investors in a research note. Though positive on the company's growth prospects, the analyst sees a more balanced risk/reward at current share levels. He'd look to become incremental buyers of Livongo shares once some of its "more nascent" long-term opportunities "become more fleshed out and gain traction."
BUY AVIS: Morgan Stanley analyst Adam Jonas upgraded Avis Budget (CAR) to Overweight from Equal Weight with a price target of $37, up from $25. New and used car sales during the pandemic have been much more resilient than forecast, driven by stimulus packages, credit availability and consumers re-prioritizing car purchases over other spending, Jonas contended. He now expects used car prices to drop 5% in 2020, up from his prior forecast for a 10% decline, and forecasts a 1% rise in used car pricing in 2021. In addition to his improved view on used car pricing, Jonas argued that strength in new car sales has lessened his concerns about "indiscriminate de-fleeting."
NEW BULL CASE OF $2,000: Wedbush analyst Daniel Ives raised the firm's price target on Tesla to $1,250 from $1,000, while keeping a Neutral rating on the shares. The analyst's "bull case" is now $2,000. With demand for Model 3's "ramping stronger than expectations" in China heading into the summer, the lockdown easing in the U.S. and Europe, and some potentially "game changing" battery developments on the horizon, Tesla's stock "likely has room to run further," Ives contended. The analyst believes the "main fundamental catalyst" for the stock continues to be the "massive" China market, which he noted is showing "clear signs of a spike in demand." The analyst's new price target also reflects "increased confidence in the Tesla story and delivery trajectory." Further, he believes the China growth story is worth at least $300 per share and $400 in a bull case to Tesla.
COVID MARKET SHARE GAINS: Bank of America analyst Alexander Perry double upgraded Hibbett Sports (HIBB) to Buy from Underperform with a price target of $30, up from $10. The analyst believes Hibbett's market share gains should accelerate during COVID-19 given its omnichannel initiatives and favorable store positioning. Perry also expects the company to return to positive same-store-sales in fiscal second quarter.
STRENGTH IN AMERICAS, EMEA: DA Davidson analyst Linda Bolton Weiser upgraded Nu Skin (NUS) to Buy from Neutral with a price target of $54, up from $35, after the company raised its second quarter revenue guidance thanks to the strength in Americas and EMEA. The analyst noted that Nu Skin sales force is "adapting well" to the "digital" sales process as online transactions have risen to over 80% of the total volume. Bolton Weiser expects Nu Skin's earnings momentum to build as prior-year comps become "even easier" in the second half of 2020.
Meanwhile, Jefferies analyst Stephanie Wissink also upgraded Nu Skin Enterprises to Buy from Hold with a price target of $50, up from $42. The analyst told investors that she sees 15%-20% upside in the shares backed by near-term sales momentum, "broad-based" geographic improvement, and a favorable set-up into an "under-modeled" fourth quarter product launch. Nu Skin's core drivers of brand development and engagement are accelerating as the company pivots to a customer-focused, digitally led, co-created marketing and affiliate model, Wissink contended, adding that the "strong underlying trend" toward health and wellness in response to COVID-19 is a catalyst for Nu Skin shares.
