Check out today's top analyst calls from around Wall Street, compiled by The Fly.
PELOTON DOWNGRADED TO NEUTRAL: Credit Suisse analyst Kaumil Gajrawala downgraded Peloton Interactive (PTON) to Neutral from Outperform with a price target of $50, down from $112. The analyst says higher mobility, a shift in consumer spending and the return of in-person fitness are "demand headwinds after a breakneck" fiscal 2021 for the company. Consumers appear fixated on reopening themes and purchases with an unclear timeline for normalization, Gajrawala tells investors in a research note. Over the next year, he thinks these factors increase the likelihood of a "no-to-low growth" in fiscal 2022 for Peloton.
EVERBRIDGE DOWNGRADED 'WITH MORE QUESTIONS THAN ANSWERS': Stifel analyst J. Parker Lane downgraded Everbridge (EVBG) to Hold from Buy with a price target of $100, down from $185. The company announced the resignation of CEO David Meredith and offered an initial outlook of 20%-23% revenue growth in 2022, which came in below Street expectations, Lane tells investors in a research note. The analyst says the timing and uncertainty around the circumstances of Meredith's departure combined with the company's guidance "introduces a high degree of uncertainty into the story in the near term." With growth decelerating from 36% in 2021 to 23% in 2022, "there are more questions than answers at this point," contends Lane.
Meanwhile, JPMorgan analyst Sterling Auty also downgraded Everbridge to Neutral from Overweight with a price target of $127, down from $200. The company announced the resignation of CEO David Meredith and provided preliminary 2022 revenue growth guidance of 20%-23% assuming no further acquisitions, which is below estimates, Auty tells investors in a research note. The analyst believes the new 2022 growth guidance is likely to further solidify growth deceleration concerns, "especially with the possibility of disruption from the leadership change." BofA analyst Brad Sills downgraded Everbridge to Underperform from Neutral with a price target of $100, down from $175. The analyst cites the company's announcement of the transition of its CEO and its preliminary FY22 revenue growth outlook of 20%-23% - below consensus of 26%. The CFO and CRO of Everbridge are capable executives, but the CEO transition "creates an overhang" and also puts into question the overall future direction of the business, Sills tells investors in a research note.
BofA analyst Brad Sills downgraded Everbridge to Underperform from Neutral with a price target of $100, down from $175, citing the company's announcement of the transition of its CEO and its preliminary FY22 revenue growth outlook of 20%-23% - below consensus of 26%. The CFO and CRO of Everbridge are capable executives, but the CEO transition "creates an overhang" and also puts into question the overall future direction of the business, Sills tells investors.
Everbridge was also downgraded at Baird, Needham, Barclays and Northland.
BANK OF AMERICA NAMED TOP BANK PICK: UBS analyst Erika Najarian assumed coverage of Bank of America (BAC) with a Buy rating and $64 price target. The analyst named Bank of America her top pick among the U.S. large cap banks. She sees the company as a potential cyclical and secular winner in this coming cycle. Bank of America is the most rate sensitive bank and enters this cycle with a "clean" balance sheet and excess capital, Najarian tells investors in a research note.
BEST IDEA FOR 2022: Cowen analyst Oliver Chen called Macy's (M) a best idea for 2022 as he views them as an an increasingly data-centric retailer driving better customer engagement through personalization, store fleet revisions, & inventory, and pricing optimization. The analyst said its valuation is also compelling due to its free cash flow, $2B real estate value, and approaching a 40% digital penetration.
CHEWY PRICE TARGET CUTS: Barclays analyst Trevor Young lowered the firm's price target on Chewy (CHWY) to $64 from $90 and keeps an Equal Weight rating on the shares. The company reported Q3 revenue that was in-line with the Street, but EBITDA was well short of expectations as more aggressive competitor pricing, inbound freight and product cost inflation muted margin expansion more than anticipated, Young tells investors in a research note. In addition, UBS analyst Michael Lasser lowered the firm's price target on Chewy to $46 from $71 and keeps a Sell rating on the shares. The company's Q3 results were highlighted by a number of new and existing headwinds as net adds "remained modest" and the churn was at high levels after an influx of adds last year, the analyst tells investors in a research note. Lasser adds that Chewy could benefit from strategies such as a move into healthcare and discretionary products, but these positives would not materialize until the latter part of FY22.
Also, Wells Fargo analyst Brian Fitzgerald lowered the firm's price target on Chewy to $90 from $110 and keeps an Overweight rating on the shares. While Chewy reported a mixed Q3 and offered a muted Q4 outlook as supply chain woes and higher-cost inputs create a near-term drag on both top-line and profitability trends, Fitzgerald was encouraged by incremental wallet share gains and improved customer acquisition efficiency, as well as the announcement earlier this week of an expansion into the pet insurance market in partnership with Trupanion (TRUP), the analyst tells investors in a research note.
