Check out today's top analyst calls from around Wall Street, compiled by The Fly.
DISAPPOINTING QUARTER: Raymond James analyst Patrick Tyler Brown downgraded FedEx (FDX) to Market Perform from Outperform without a price target following a disappointing quarter despite solid top line trends on lower guidance, continued CapEx investments, back-end loading of guidance, and more global uncertainty. Brown is concerned that numbers remain at risk as the guidance assumes continued growth in Industrial Production and trade, labor inefficiencies abate, and less-controllable "bad guys" from last year don't recur.
45% UPSIDE: Wells Fargo analyst Brian Fitzgerald initiated coverage of Vimeo (VMEO) with an Overweight rating and $47 price target. The analyst views the post-second quarter earnings pullback as overdone and believes the stock's current valuation presents an attractive entry point, with 45% upside to his price target. Vimeo addresses a "large and attractive" opportunity in small- to mid-sized business and enterprise video software tools and currently occupies the pole position among paid solution providers, Fitzgerald told investors in a research note. He believes Vimeo's "strong positioning will support a robust multiyear top-line trajectory."
ON THE SIDELINES: Needham analyst Anna Andreeva initiated coverage of Poshmark (POSH) with a Hold rating. The analyst is positive on the company's "sticky" blend of "social-like" interactions with e-commerce but warns that its expansion into new geographies and uncertainty around the Identifier for Advertisers, or IDFA, policy could lead to "sustained" elevated marketing spending and compressed margins. Andreeva added that at enterprise value 4.1-times her expected full year 2022 sales, valuation on Poshmark is still roughly in line with its peers.
BUY SIMON PROPERTY: Argus analyst Angus Kelleher-Ferguson upgraded Simon Property (SPG) to Buy from Hold with a $142 price target. The company is exiting the pandemic with a stronger competitive position as a result of its acquisition of Taubman and its growing omni-channel strategy, the analyst told investors in a research note. Kelleher-Ferguson added that Simon Property's recent second quarter results have been "impressive" as the company raised its guidance and also boosted its dividend.
SIGNIFICANT USER GROWTH: Jefferies analyst John Hecht initiated coverage of SoFi Technologies (SOFI) with a Buy rating and $25 price target. The analyst believes SoFi's "flywheel," designed to cross-sell the company's "exhaustive" consumer finance product suite, can continue to drive significant user growth, product adoption, and margin expansion. Member growth is key to SoFi's strategy as a direct driver of revenue expansion, noted Hecht, who projects 46% average revenue growth through 2025. In addition, he noted that SoFi has made significant progress as it seeks a Federal bank charter and while the impacts of the charter are not factored into long-term guidance or his estimates, he thinks the addition of a bank charter would add about 30% in incremental adjusted EBITDA relative to his current base case estimates.
