Check out today's top analyst calls from around Wall Street, compiled by The Fly.
737 MAX RETURN 'FINALLY IN SIGHT': Alembic Global analyst Pete Skibitski upgraded Boeing (BA) to Overweight from Neutral with a price target of $184, up from $159. The analyst cited the news last week that European regulators now expect to approve the 737 MAX's return to service by November. An approval from the federal Aviation Administration would likely precede that, which "meaningfully raises" the likelihood that Boeing will return to cash-generation mode in 2021, the analyst contended. Skibitski believes the "end is finally in sight" for the return of the 737 MAX.
INTERNET VALUATION REWORKING: Guggenheim analyst Michael Morris upgraded Snap (SNAP) to Buy from Neutral with a price target of $28, up from $22, as he revised his valuation framework for digital media companies to better reflect what he believes to be greater similarities between internet and software companies -- including core investment in R&D and engineering resources and the creation of high-utility technology platforms -- than is implied in current valuations. He believes that at the core, "internet" companies are software development and distribution companies that largely focus on consumer rather than enterprise applications and expects investors will continue to evolve their view to reflect this, which will drive incremental appreciation for internet stocks.
The analyst also upgraded Spotify (SPOT) to Neutral from Sell with a price target of $250, up from $232, and initiated coverage of Pinterest (PINS) with a Buy rating and $48 price target.
'VERY STRONG' PRICING POWER: Deutsche Bank analyst Amit Mehrotra upgraded FedEx (FDX) to Buy from Hold with a price target of $318, up from $243, after hosting virtual meetings with management. The upcoming results for both FedEx and UPS (UPS) have the potential to exhibit "very strong" pricing power, the benefits of which "are likely still being underappreciated," Mehrotra told investors in a research note. The analyst sees an additional 30% upside in shares of FedEx.
'STEADY CADENCE' OF FAVORABLE COMMENTARY: KeyBanc analyst Todd Fowler upgraded UPS to Overweight from Sector Weight with a $190 price target following meetings with management. The analyst expects a "steady cadence of favorable commentary" around yield, efficiency, and capital deployment initiatives from new CEO Carol Tome. When combined with secular trends supporting domestic package growth, UPS should experience better margins and returns, Fowler told investors in a research note. The analyst views parcel as the fastest growth area in domestic transportation, "with ample share for all participants
BUY VIRGIN GALACTIC: Bank of America analyst Ronald Epstein initiated Virgin Galactic (SPCE) with a Buy rating and $35 price target, noting that the company is unique in aerospace with its nearly full vertical integration capabilities in structures, assembly, propulsion, and avionics. While Virgin Galactic's "vertical integration capabilities are unparalleled" and it has a leading market position with no operating competition, the business is "not without risk" as a "fatal accident, though unlikely, could compromise the business model," Epstein told investors.
Meanwhile, Susquehanna analyst Charles Minervino also initiated coverage of Virgin Galactic with a Positive rating and $20 price target. The analyst, who views Virgin as "an innovator of space technology with a truly unique offering," believes the company will be tapping into significant latent demand for space tourism, although he also acknowledges it will be serving what is an untested market.
