- Goldman Sachs upgraded Procter & Gamble to buy from neutral
- UBS lowered its price target on Tesla to $160 from $200
- Credit Suisse downgraded Walgreens Boots Alliance to neutral from outperform
- Citi downgraded Live Nation to sell from neutral
- Oppenheimer upgraded AutoZone to outperform from perform
- Deutsche Bank initiated Bloomin' Brands as buy
- Stephens downgraded Wingstop to equal-weight from overweight
- Piper Jaffray downgraded Biogen to neutral from overweight
- Consumer Edge initiated Tilray as overweight
Here are the biggest calls on Wall Street on Friday:
Goldman Sachs upgraded the stock on expectations of stronger margins and profit growth.
"This past year has marked a turn in PG's market share and organic sales growth. We expect next year to mark a turn in its margin proﬁle and proﬁt growth as relative organic strength sustains. While we see little room for further positive re-rating for the stock, we ﬁnd our high-single-digit EPS compound annual growth rate forecast, when combined with a low-single-digit dividend yield, offers investors a potential double-digit total shareholder return."
Read more about this call here.
UBS lowered its target price on Tesla and said it was "cautious" on Q2 profits and second half deliveries.
"The q/q decline in deliveries in Q1 raised concerns about demand and likely sparked the share decline. If TSLA can show a strong q/q recovery close to its 90-100k target, it would likely appease bulls. To understand demand better, we created a TSLA global demand tracker gathering global registration data. Our analysis shows that with a strong Q2 exit, similar to most quarters, ~87k looks possible."
Read more about this call here.
Credit Suisse said it is looking for "clear indications" that earnings growth will improve.
"At 9.0x our CY2020 EPS est., WBA stock discounts many of the headwinds WBA faces. However, we are looking for clear indications that visibility on earnings growth is improving before considering raising our investment rating. Our $60 PT is based on roughly 10x our CY2020 EPS est. Risks to our rating includes reduced tailwinds to offset reimbursement pressure, lower generic deflation, and lower brand inflation."
Citi said the concert and events promoter has a valuation that is "stretched."
"Four factors make valuing Live Nation on an EV-EBITDA basis complex: 1) 60-70% of cash on the balance sheet isn't shareholders' cash, 2) Recent accounting changes have brought ~$1.2 billion of operating leases onto Live Nation's balance sheet, 3) We estimate minorities have a claim on 10-15% of Live Nation's AOI, 4) Excluding amortization of non-recoupable ticketing advances from AOI ignores ~$85 million of cash-based expenses."
Oppenheimer upgraded the auto parts retailer noting the potential of sustained strong commercial sales expansion.
"Our new 12-to 18-month price target of $1,225 (up from $900) suggests upside of nearly +15% from current levels. Last week, at our 19th Annual OpCo Consumer Growth & eCommerce Conference in Boston, we spent considerable time with senior leadership of AZO. We are now incrementally optimistic in the underlying potential for shares."
Deutsche Bank said the restaurant operator is cheap relative to its peers and can rise on any improvement in its profit margins.
"The BLMN story largely boils down to whether or not it can execute on its long-term adjusted operating margin expansion targets set forth at its Investor Day in March. At present, consensus expectations for 2020 imply skepticism that the targets can be hit. In addition, at present, BLMN's EV / EBITDA multiple screens cheap relative not only to its Casual Dining Peers, but also to its own five-year historical averages."
Stephens said it was "reluctantly downgrading quality" based on current valuation.
"Valuations in the restaurant sector have become increasingly bifurcated between what the market views as higher quality players with steady or growing margins and consistent share gains vs. those facing various forms of cost inflation and/or top-line struggles...WING's continued success has resulted in an unprecedented gap vs. its peer set"
Piper Jaffray downgraded the stock and said it saw competitive pressures for the drug maker's multiple sclerosis franchise.
"While we acknowledge that only last month, we were recommending BIIB as a somewhat contrarian idea in hopes that management could fashion together a credible settlement with Mylan around Tecfidera's myriad IP challenges, we highlight new survey data that we think present a deeper fundamental issue of competitive pressure across Biogen's MS franchise. Given what we see as troubling near- and longer-term trends, we think even a positive IP settlement is likely to only provide transient upside."
Consumer Edge said that the pharmaceutical and cannabis company has the most "potential for future news" that will impact the stock.
"We don't believe that Tilray survives in its current form and that will create value for investors. We believe that the company's backers, decisions and actions suggest the opportunity to sell pieces of the business or structure royalty deals. Furthermore, of the 3 companies that we are initiating coverage on, this name has the most potential for future news impacting the stock as it's still awaiting a strategic investor."