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Today's top analyst calls - Nov 15: W SHOP FUBO DLTR DG CRWD

SLOWING REVENUE GROWTH: Argus analyst John Staszak downgraded Wayfair ($W) to Hold from Buy. While the company should benefit over time as more consumers purchase home goods online, its revenue growth rate has now declined for two straight quarters and it is unclear when it will resume, the analyst told investors in a research note. Staszak is also cutting his full year 2021 earnings per share view on Wayfair to $3.30 from $4.50 and full year 2022 view to $4.10 from $6.60 after Wayfair's latest third quarter results that saw revenue fall 19%.

VALUATION IN LINE WITH BULLISH OUTLOOK: Loop Capital analyst Anthony Chukumba downgraded Shopify ($SHOP) to Hold from Buy with an unchanged $1,600 price target. The analyst acknowledged that the company remains one of the most compelling long-term fundamental stories in his coverage universe, and continues to believe that it is increasingly cementing its position as the dominant online "retail operating system." However, with the stock trading at 34.1-times his expected 2022 revenue, the current valuation levels are now line with his bullish outlook, Chukumba contended.

MOVING TO THE SIDELINES: Barrington analyst James Goss downgraded FuboTV ($FUBO) to Market Perform from Outperform with no price target. While the analyst continues to be intrigued by the potential value creation potential within FuboTV, he is moving to a lower rating as he monitors progress on "creating financial metrics that will support more ambitious values."

MANTLE RIDGE STAKE: Deutsche Bank analyst Krisztina Katai upgraded Dollar Tree ($DLTR) to Buy from Hold with a price target of $148, up from $96. The analyst sees an improved risk/reward on the shares through potential operational and profitability improvements at Family Dollar "given a greater sense of urgency with Mantle Ridge's influence." A new large shareholder with a focus on unlocking value by closing the profitability gap between Dollar Tree's Family Dollar and Dollar General ($DG) "should lead to a more patient investor base with a longer-term focus, and frankly translate to one of the most compelling retail stories with an exciting narrative change underway," Katai told investors in a research note.

COMPETITIVE PRESSURE: Morgan Stanley analyst Hamza Fodderwala initiated coverage of Crowdstrike ($CRWD) with an Underweight rating and $247 price target. Crowdstrike has quickly risen to market leadership with a SaaS-based Endpoint Detection & Response, or EDR, platform and an AI-driven approach that better adapts to an evolving threat landscape compared to legacy incumbents, which has driven rapid share gains, Fodderwala noted. However, the analyst points out that checks indicate Crowdstrike's early leadership position is now increasingly challenged by more competitive next-generation EDR alternatives offering price points typically at least 15%-20% less expensive. He thinks this competitive dynamic will make sustaining the current pace of share gains more difficult and says that the potential for decelerating revenue growth creates an unfavorable risk-reward at the stock's current valuation.


Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal.

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