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Today's top analyst calls - Dec 1: SQ DLTR BYND SEDG OTLY

DECELERATION RISK PRICED IN: Bank of America analyst Jason Kupferberg upgraded Square ($SQ) to Neutral from Underperform with a price target of $221, up from $210. The "deceleration risk" of the company's Cash App business has been "more appropriately" priced in as the stock now trades 25% below August highs and 15% since reporting a third quarter earnings miss earlier this month, the analyst told investors in a research note. Kupferberg added that he hesitates to take a more constructive stance on Square until there is better visibility on the near-term and medium-term trajectory of the Cash App gross profit.

MOVING TO THE SIDELINES: Goldman Sachs analyst Kate McShane downgraded Dollar Tree ($DLTR) to Neutral from Buy with a price target of $150, up from $116. While her higher target reflects a roll-forward of higher estimates and a higher market multiple, she downgraded the shares given an expected shift by the low-end consumer to focus on essentials while the company's initiatives are largely focused on discretionary expansion; the fact that traffic continues to decline at both of the company's banners despite lapping easy comparisons; and a view that shares are trading at a full valuation.

'INCREASINGLY COMPETITIVE' MARKET: HSBC analyst Jeremy Fialko initiated coverage of Beyond Meat ($BYND) with a Reduce rating and $62 price target. Although Beyond Meat has a quality product, the "highly fragmented and increasingly competitive" meat protein market will make growth harder to come by, leading to below-consensus revenue, Fialko told investors in a research note. The analyst believes achieving price parity with comparable meat products "also looks a formidable challenge without compromising profitability." As such, Fialko sees 18% downside in Beyond Meat shares.

LIMITED UPSIDE: Morgan Stanley analyst Stephen Byrd downgraded SolarEdge Technologies ($SEDG) to Equal Weight from Overweight with a price target of $338, up from $318. While SolarEdge remains a "premium player" in the solar sector, the stock's year-to-date outperformance leaves limited room for further upside, Byrd contended. The analyst added that as the company's non-solar business grows, its margins may decline over time.

SELL OATLY: HSBC analyst Jeremy Fialko initiated coverage of Oatly Group ($OTLY) with a Reduce rating and $7.80 price target. The analyst thinks Oatly management has "fundamentally overestimated" the size of the oat milk category in the medium-term. Further, the company's overinvesting will "hamstring margins or require capacity cuts," Fialko told investors in a research note. He views the stock's valuation as "frothier than Barista blend."


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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