Check out today's top analyst calls from around Wall Street, compiled by The Fly.
'COMPELLING' RISK/REWARD: Citi analyst Jason Bazinet upgraded SeaWorld (SEAS) to Buy from Neutral with a price target of $24, up from $9. While the analyst expects "ongoing challenges in a post-COVID environment" and models 2022 attendance 5% below 2019 levels, he notes that SeaWorld's strategic efforts to promote its season pass has helped grow in-park spend, particularly in 2018 and 2019. If assuming 2022 attendance is 20% below 2019 levels, the analyst gets a target price of $10, or $8 downside from current levels. However, Bazinet sees "many more cases for upside" to current prices, including better revenue, higher EBITDA margins and higher multiples. As such, the analyst views SeaWorld's risk/reward as "compelling" at current share levels.
BUY TYSON FOODS: Bernstein analyst Alexia Howard upgraded Tyson Foods (TSN) to Outperform from Market Perform with a price target of $83, up from $62. As livestock slaughter remains meaningfully below the year-ago level, the industry average pork and beef packer margins have reached record levels, Howard told investors in a research note. The analyst expects Tyson to partially benefit from the record high margins, but notes this could be offset by operational deleveraging and incremental COVID-related costs. Over the medium-term, Howard continues to expect the African swine flu-led global pork shortage in China to support protein demand and pricing.
BANK RATINGS SHUFFLE: Deutsche Bank analyst Matthew O'Connor downgraded Goldman Sachs (GS) to Hold from Buy and upgraded Wells Fargo (WFC) to Buy from Hold as part of a broader research note. The analyst noted that the good news for Goldman Sachs seems to be baked in with the stock outperforming, and the potential selloff in equities could weigh on several of Goldman's businesses like trading, investment banking and asset management. O'Connor added that Wells Fargo has been the worst performer and the "bar has been set low," with a plan for a turnaround coming.
'STRETCHED' VALUATION: Raymond James analyst Joseph Altobello downgraded Planet Fitness (PLNT) to Market Perform from Outperform and removed his prior $63 price target. With the shares now approaching $80, which he attributes mainly to optimism regarding a broad-based economic recovery as areas of the U.S. reopen, he believes the stock's valuation has become "stretched." Nonetheless, Altobello noted that the early re-openings of stores have been encouraging and continues to believe Planet is well positioned for longer-term growth and market share gains.
BUY SALLY BEAUTY: Oppenheimer analyst Rupesh Parikh upgraded Sally Beauty (SBH) to Outperform from Perform with a $19 price target. The analyst noted that the re-opening of salons throughout the U.S., surprising strength of Sally Beauty's rapidly growing e-commerce offering, and the May sales performance have sharply exceeded his expectations. Given the worst-case scenario now off the table, Parikh is increasingly optimistic that Sally Beauty could emerge stronger post the coronavirus epidemic and is more confident in a sales and earnings recovery to at/or above historical levels by fiscal year 2022.
SeaWorld
+0.38 (+2.05%)
Tyson Foods
+2.02 (+3.36%)
Wells Fargo
-0.01 (-0.03%)
Goldman Sachs
-1.78 (-0.85%)
Planet Fitness
-2.45 (-3.17%)
Sally Beauty
-0.1 (-0.66%)