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Today's top analyst calls - Oct 13: W MNST WDAY PAYC SHW HUBS

MOVING TO THE SIDELINES: Jefferies analyst Jonathan Matuszewski downgraded Wayfair ($W) to Hold from Buy with a price target of $225, down from $330. Web traffic for the third quarter ended weak and the fourth quarter started slow, with Matuszewski feeling Street estimates for the second half of the year are too high against a backdrop of supply chain disarray. Though shares are more than 30% off highs, soft data isn't priced in yet, the analyst contended.

U.S. MARKET SHARE LOSSES: Jefferies analyst Kevin Grundy downgraded Monster Beverage ($MNST) to Hold from Buy with a price target of $92, down from $113. U.S. market share losses are "worrisome" as emerging brands disrupt the energy drink category, the analyst contended, adding that he sees supply chain issues likely continuing into 2022 with category pricing still on hold.

SUBSCRIPTION GROWTH: DA Davidson analyst Robert Simmons initiated coverage of Workday ($WDAY) with a Buy rating and $300 price target. The company is a dominant Cloud HCM provider in the U.S. with a financial management suite that has matured so as to take the baton on driving growth, the analyst told investors in a research note. Simmons believes that Workday's ramping international investments should allow the company to sustain its 20% subscription growth as it tracks toward its $10B revenue target.

The analyst also started coverage of Paycom ($PAYC) with a Neutral rating and $550 price target. While Simmons acknowledged that Paycom can grow at least mid-20s for multiple years as COVID-19 headwinds recede, he prefers to await a "more compelling" valuation for an entry point.

MULTI-YEAR STRENGTH: Mizuho analyst Christopher Parkinson initiated coverage of Sherwin-Williams ($SHW) with a Buy rating and $352 price target. The analyst's thesis is based on multi-year strength across the U.S. housing market driven by U.S. home price appreciation, robust new and existing U.S. home sales, and an eventual rebound in commercial activity.

BUY HUBSPOT: RBC Capital analyst Rishi Jaluria assumed coverage of HubSpot ($HUBS) with an Outperform rating with a price target of $925, up from $610. The analyst cited the company's analyst day presentations where the highlights included the announcement of HubSpot Payments, the incremental proof points of the evolution from a marketing application to a multi-hub platform, and the increased confidence in a move upmarket. Jaluria further noted HubSpot management's confidence in DBNRR of over 110%, up from historical levels of about 100%.

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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