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Today's top analyst calls - June 23: CVNA URI PH VZ ICE

MEANINGFUL PULL BACK: JPMorgan analyst Rajat Gupta downgraded Carvana ($CVNA) to Neutral from Overweight with an unchanged price target of $325. The recent rebound in the shares coupled with a "meaningful pull back" in brick and mortar auto retailers makes the stock's near-term relative risk/reward less favorable, Gupta tells investors in a research note. With the shares outperforming peers and up 31% year-to-date, Carvana is getting "appropriate credit for robust multi-year revenue and gross profit growth," the analyst says.

POSITIVE ESTIMATE REVISIONS: Citi analyst Timothy Thein upgraded United Rentals ($URI) to Buy from Neutral with an unchanged price target of $350. The analyst thinks positive estimate revisions "can support further upside to the stock." The North America machinery group has pulled back alongside the yield curve flattening and declining inflation expectations as a hawkish shift in Federal Reserve tone appears to have removed the right tail risk in inflation, Thein tells investors in a research note. However, the analyst says it is too early to call for an end of the upcycle and he'd be "selectively leaning in to the sector on the back of this sharp pullback."

MULTIYEAR CYCLE: KeyBanc analyst Jeffrey Hammond upgraded Parker-Hannifin ($PH) to Overweight from Sector Weight with a $350 price target. The analyst believes Parker-Hannifin is "early in a multiyear upcycle," with potential to push margins into the top quartile of its peer group, "further supported by additional value-creating acquisitions" that improve its profitability mix while balancing cyclicality. He views the recent underperformance of the shares as overdone.

'POSITIVE CATALYST WATCH': Citi analyst Michael Rollins is taking a positive view on Verizon's ($VZ) upcoming Q2 results. He raised his Q2 postpaid phone net additions outlook from 125,000 to 215,000, above the consensus at 152,000. Rollins also expects the company's service revenue to benefit from customer up-tiering and a return of transactional/late fees. As such, the analyst added Verizon to Citi's "positive catalyst watch list." He keeps a Neutral rating on the shares with a $61 price target citing valuation.

CONVICTION BUY:
Goldman Sachs analyst Alexander Blostein added IntercontinentalExchange ($ICE) to the firm's Conviction List and keeps a Buy rating on the shares with a $141 price target, implying 24% upside from current levels. The company has been among the biggest laggards in the sector year-to-date and now trades a "significant discount" to peers across exchanges and data services companies, Blostein tells investors in a research note. IntercontinentalExchange's valuation today is at a record 24% discount to the implied sum-of-the-parts, which overly discounts risks from decline in mortgage refinance activity and ignores momentum in the rest of the company, particularly in energy trading "amid structural tailwinds" in the clean energy market, says the analyst.


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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