Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BULLISH AHEAD OF RESULTS: Gordon Haskett analyst Chuck Grom upgraded Home Depot (HD) to Accumulate from Hold with a $306 price target ahead of earnings reports from the company and peer Lowe's (LOW). Based on macro data and his checks, Grom has raised his second quarter same-store sales estimates for both chains, taking his forecast for Lowe's up to 14.0% from 7.0% and for Home Depot to 12.0% from 4.5%, noting that these are ahead of the consensus same-store sales growth forecasts of 12.7% and 8.9%, respectively. Grom has a Buy rating on Lowe's stock with a $185 price target.
REVENUE GROWTH TO CONTINUE: Deutsche Bank analyst Jeffrey Rand initiated coverage of Roku (ROKU) with a Buy rating and $185 price target. The analyst argued that the "market leader" in the connected TV market with close to 50% market share of global CTV streaming hours has done an "impressive job" of building out the largest installed base in the industry. With Roku already having an installed base of 43M users and the transition to streaming still in the early innings, he thinks the company can continue to grow revenue at a 30%-plus rate for "at least the next few years."
ON THE SIDELINES: Bank of America analyst Lorraine Hutchinson initiated coverage of Ulta Beauty (ULTA) with a Neutral rating and $230 price target. The analyst believes the company should emerge as a "high quality beneficiary" of the post-COVID trends of "self-care, affordable experiences, and the traffic shift from malls to off-mall." But while Ulta should sustain its progression to steady comp growth and margin recovery, Hutchinson warns of risks to consensus estimates in the second half of this year.
BALANCED RISK/REWARD: Stifel analyst Scott Devitt initiated coverage of Carvana (CVNA) with a Hold rating and $195 price target. The analyst noted that while the company is the "first mover" in the underpenetrated e-commerce category of used cars and has a competitive moat supported by its first party logistics and reconditioning network, the current valuation reflects a balanced risk/reward. Nonetheless, Devitt added that he would be a buyer on any pullbacks.
GROWTH IDEA: JPMorgan analyst Christopher Horvers raised the firm's price target on Target (TGT) to $154 from $135 and added the stock to his firm's Analyst Focus List as a growth idea following checks that indicate the company's mid-to-high teens first quarter same-store sales growth exit rate was likely sustained into the second quarter. Horvers also raised his second quarter comp forecast for Target to 14.0%, versus consensus of 7.0%, as he believes a modest deceleration in food and beverage/essentials has been offset by continued strength in the electronics, home, and apparel categories. The analyst has an Overweight rating on the shares.
