Investing

Here are the biggest analyst calls of the day: Target, Boston Beer, Square & more

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Key Points
  • J.P. Morgan is upgrading Whirlpool to overweight from neutral.
  • BMO is upgrading Boston Beer to outperform from market perform.
  • Wells Fargo is upgrading Square to outperform from market perform.
  • Cowen is naming Target a top pick.
  • Citi is upgrading AbbVie to buy from neutral.
Target's store remodels include new toy departments.
Source: Target

Here are the biggest calls on Wall Street on Thursday:

J.P. Morgan upgraded Whirlpool to 'overweight' from 'neutral'

J.P. Morgan said that Whirlpool's valuation was largely "inexpensive" among other things.

"We upgrade WHR to Overweight from Neutral, as we expect U.S. industry shipments to be more stable YOY through the end of 2019 and show modest growth in 2020, point to steel prices remaining at bay, expect Europe to finally turn a small profit in 2H19, and lastly, view its valuation as inexpensive."

BMO upgraded Boston Beer to 'outperform' from 'market perform'

BMO said the beer maker could see "80% growth" in 2020.

"We are upgrading SAM shares to Outperform as the main pushback against SAM – its high P/E multiple (2020E: 33x) – can be turned around on its head with a better assessment of SAM's earnings potential. In fact, we believe that 2020 EPS could approach $13, which implies that SAM's currently trading at a 2020E P/E of 26x-27x, highly attractive given its 20% and 30% sales and EPS growth outlook over the next three years."

Wells Fargo upgraded Square to 'outperform' from 'market perform'

Wells Fargo said the mobile payments company's fundamentals remain strong and that investor sentiment is overly negative.

"On balance, we believe: (1) SQ's fundamentals remain strong; (2) investor sentiment is overly negative and close to inflecting; and (3) valuation is more attractive than it has been for some time."

Read more about this call here.

Cowen named Target a 'top pick'

Cowen called Target a top pick based on strong recent results and an improved profit margin outlook.

"We are also raising our PT to $130 from $120 on 20x our FY20E EPS of $6.60. Despite TGT's strong stock run, with shares up +63% YTD, we are incrementally more upbeat following strong recent results and an improved margin outlook. We view TGT's 16x P/E as relatively inexpensive given the company's strong physical and digital growth, and a more stable margin outlook."

Citi upgraded AbbVie to 'buy' from 'neutral'

Citi said it was bullish on the company's acquisition of Allergan and that the market "under appreciates" some parts of AbbVie's portfolio.

"We reiterate our initial positive view that AbbVie will extract significant shareholder value from Allergan's franchises given its strong commercial focus and patient/physician centricity. Within AbbVie's organic portfolio, we continue to believe the market under appreciates the revenue potential of both Skyrizi and Rinvoq."