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Research analysts at Wall Street's largest banks issue recommendations on whether a stock should be bought, held, or sold. The Fly's team of financial market experts scours hundreds of research notes daily to uncover the best trading ideas. Check out today's top analyst calls from around Wall Street, compiled by The Fly.
'COMPELLING' VALUATION: Guggenheim analyst Laurent Grandet upgraded Coca-Cola (KO) to Buy from Neutral with a price target of $66, up from $61. The company is exiting the fiscal 2021 transition year "stronger," Grandet told investors in a research note. The analyst also noted that Coca-Cola is seeing strong emerging markets despite low vaccination rates and that its on-premise sales are recovering faster than expected. Further, the company's portfolio rationalization should lead to a "more focused and agile organization" with gross margin benefits, Grandet contended. The analyst views Coca-Cola's valuation as "compelling" at current share levels and sees 12% annual earnings growth through fiscal 2023.
MARKET SHARE LOSS: JPMorgan analyst Matthew Boss downgraded Foot Locker (FL) to Underweight from Neutral with a price target of $42, down from $60. The analyst cited the combination of market share compression in an expanding total addressable market athletic category and multi-year margin "pressure points" on both rising occupancy and wage costs for the downgrade. Boss downgraded the shares after assessing the risk to Foot Locker from Nike's (NKE) direct-to-consumer strategy.
'A LOT TO LOVE': Wolfe Research analyst Deepak Mathivanan initiated coverage of Match Group (MTCH) with an Outperform rating and $163 price target in a note partially titled "A Lot to Love," citing a belief that online dating is one of the few categories in Internet where there is still significant room left for secular penetration gains. Online dating should benefit from mid-term post-pandemic tailwinds, Tinder "remains a juggernaut," Hinge is seeing strong growth and its story is still in the early innings and Apple's (AAPL) App Stores fee change could "nicely" boost Match's EBITDA margin, Mathivanan told investors.
The analyst also started coverage of Pinterest (PINS) and Zillow Group (ZG) with Peer Perform ratings and price targets of $45 and $75, respectively.
BUY UNDER ARMOUR: Baird analyst Jonathan Komp upgraded Under Armour (UAA) to Outperform from Neutral with an unchanged price target of $32 as he repositions for 2022 in the Apparel, Footwear and Fitness space. With valuation multiples in the space seen as unlikely to broadly re-rate higher, Komp is concentrating his bets behind companies with visible cyclical earnings recovery prospects, naming Under Armour and Planet Fitness (PLNT) as his top 2022 ideas.
SELLOFF PRESENTS OPPORTUNITY: Credit Suisse analyst John Walsh upgraded General Electric (GE) to Outperform from Neutral with a $122 price target. The company is executing on its transformation to separate into three public companies, namely Energy, Aviation, and Healthcare, Walsh told investors in a research note. He believes the recent selloff in the shares presents an opportunity to get positive. The 14% pullback since the separation announcement on November 9 has created an opportunity for both absolute and relative price appreciation as GE should benefit from a cyclical recovery in 2022, the analyst contended. He thinks a cyclical recovery in aerospace and free cash flow execution will drive the stock higher, despite a "lack of catalyst narrative" into the spinoffs.
Walsh also downgraded Honeywell (HON) to Neutral from Outperform with a price target of $226, down from $243. The analyst continues to believe that Honeywell is a "high quality Industrial Software company with leading businesses across each segment." However, as he looks across the mega cap stocks with leverage to cyclical aerospace recovery, Walsh sees more upside potential in shares of General Electric. For Honeywell, the analyst expects only modest margin expansion in 2022 at aerospace given the company's already strong execution and negative mix potential.
Coca-Cola
+1.05 (+1.77%)
Foot Locker
-1.65 (-3.69%)
Match Group
-2.11 (-1.57%)
-2.74 (-7.53%)
Zillow Group
-2.33 (-3.76%)
Zillow
-2.24 (-3.53%)
Under Armour
+0.2 (+0.94%)
Under Armour
+0.165 (+0.91%)
Planet Fitness
+0.75 (+0.81%)
GE Aerospace
+3.34 (+3.47%)
Honeywell
+1.64 (+0.79%)
Apple
+0.03 (+0.02%)