Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BIOGEN UPGRADE: Bernstein analyst Aaron Gal upgraded Biogen (BIIB) to Outperform from Market Perform with a $500 price target. Gal tells investors in a research note that the market circumstance of Aduhelm will allow for strong adoption and that regulatory scrutiny of the price of the new Alzheimer's drugs will not happen until its budgetary impact is observed. The analyst feels Biogen is in a position to outperform in the near term and, if it executes effectively, to translate its approval for broader leadership in AD. He sees Aduhelm reaching $10B in sales in 2023, even with conservative assumptions.
SIGNET BEAR CASE 'OFF THE TABLE': Wells Fargo analyst Ike Boruchow upgraded Signet Jewelers (SIG) to Equal Weight from Underweight with a price target of $70, up from $57. Signet reported a very strong Q1 beat, while raising their outlook well above the Street, and Boruchow tells investors in a research note that the bear case has been taken off the table. The analyst says management execution is proving itself across the P&L, as Signet is generating more sales with fewer stores, digital has materially inflected, costs continue to be removed from the model and the balance sheet has been materially cleaned up.
ZOOM ASSUMED: RBC Capital analyst Rishi Jaluria assumed coverage of Zoom Video (ZM) with an Outperform rating with a price target of $450, down from $480. Jaluria named Zoom his top pick, though he added that while the company undoubtedly had stellar performance in 2020, there is a question around how it will perform in a post-pandemic world. The analyst added that he remains bullish because Zoom will remain important and relevant in a post-pandemic world, because it has differentiated technology, and because it has an attractive long-term financial profile.
MORGAN STANLEY DOWNGRADES IT HARDWARE VIEW: Morgan Stanley analyst Katy Huberty downgraded Logitech (LOGI) and Cricut (CRCT) to Equal Weight from Overweight as she is downgrading her broader view on the IT Hardware industry given the group's "significant outperformance and multiple re-rating." The analyst recommends the Enterprise stock group for the second half of 2021 however, with Dell (DELL), NCR Corp (NCR), NetApp (NTAP) and Seagate (STX) rated as her Top Picks, with Overweight ratings.
MODEL S PLAID ILLUSTRATES TECH LEADERSHIP: After Tesla (TSLA) held an event to mark the start of deliveries of the new Model S Plaid, which can accelerate from 0 to 60 MPH in less than two seconds, has about 400 miles of range, and has a starting price of about $130,000 in the U.S., Goldman Sachs analyst Mark Delaney noted that luxury vehicles make up only about 1% of the U.S. market and the market for the Plaid itself is "relatively small." However, he views it as an "important product" given that the Plaid helps illustrate Tesla's technology leadership position, which he sees as one of the reasons for its strong share in EVs. The Plaid also shows off the superior acceleration that EVs provide compared to internal combustion engine cars, which supports his positive view on EV adoption, said Delaney, who has a Buy rating and $860 price target on Tesla shares.
