Check out today's top analyst calls from around Wall Street, compiled by The Fly.
MOVING TO THE SIDELINES: Deutsche Bank analyst Bryan Kraft downgraded Netflix (NFLX) to Hold from Buy with an unchanged price target of $590, citing valuation following third quarter results. Kraft noted that his 2021 and 2022 subscriber, revenue, EBITDA, and EBIT forecasts are essentially unchanged following Netflix's "slightly better-than-expected" quarter. As such, he maintains the $590 12-month price target, which is below Tuesday's closing price. Kraft also thinks a fourth quarter subscriber beat is "already more than priced into the stock." At some point, Netflix "will begin to trade on profit metrics," he contended.
PRICING, DEMAND HEADWINDS TO LIMIT UPSIDE: Mizuho analyst Vijay Rakesh downgraded Micron (MU) to Neutral from Buy with a price target of $75, down from $90. The analyst believes that while Micron has been executing well, fourth quarter through second quarter could see DRAM pricing fall 8%-10% quarter-over-quarter through consecutive quarters compared to his prior expectations of flat to down 2%. Acknowledging that shares have underperformed, Rakesh sees near-term pricing and demand headwinds limiting upside. The analyst also downgraded Qorvo (QRVO) and Western Digital (WDC) to Neutral from Buy with price targets of $175 and $62, respectively.
BUY FORD: Credit Suisse analyst Dan Levy upgraded Ford Motor (F) to Outperform from Neutral with a price target of $20, up from $15. The analyst noted that in the last year, he has seen a "significant turnaround" at Ford, with the company ending its cycle of quarterly earnings disappointments and its transition to electric vehicles having "sharply accelerated. " Levy believes "there is more opportunity ahead" as Ford will not only benefit from improving fundamentals, but also changing its perception on long positioning in electric vehicles and digital.
LACKING TECH INFRASTRUCTURE TO COMPETE: Morgan Stanley analyst Thomas Allen resumed coverage of Penn National (PENN) with an Equal Weight rating and $85 price target. In a preview for the North American casino group, Allen said he is raising his third quarter Vegas estimates based on state data and channel checks while he believes regional casino activity "as a whole remains robust." While he views Penn as a key beneficiary of the inflection in growth of U.S. casino revenue and the legalization of U.S. sports betting, and models the company achieving 10% market share in U.S./Canada sports betting and iGaming, Allen is concerned that it still lacks the technology infrastructure to compete with the leading sports betting operators as the market matures past the initial customer acquisition stage.
RISING ESTIMATE RISK: Guggenheim analyst Joseph Osha downgraded SolarEdge Technologies (SEDG), First Solar (FSLR), Shoals (SHLS) and Array (ARRY) to Neutral from Buy as he sees "risks to consensus expectations rising" and believes the stocks now appear fairly valued. Risks to 2022 revenue and earnings outlooks are rising, notably in utility and large-scale commercial solar, and these are not fully reflected in consensus estimates, Osha told investors in a research note. He thinks high input costs, particularly for steel, aluminum, labor and panels are beginning to impact 2022 project timing.
