- Needham initiated Amazon as buy.
- RBC raised its price target on Apple to $390 from $345.
- Canaccord initiating Stitch Fix as buy.
- Cowen initiated Nikola as outperform.
- Deutsche Bank added a catalyst call buy idea on UPS.
- Guggenheim initiated MSG Entertainment as buy..
- JPMorgan added Constellation Brands to the focus list
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Here are the biggest calls on Wall Street on Wednesday:
Needham initiated the e-commerce giant and said shares may be worth $4,500 to $5,000 over the long term.
"We initiate coverage of AMZN with a BUY rating and $3,200 12-month Price Target. We calculate several forms of valuation that conclude that AMZN is worth $4,500 to $5,000/share longer term: a) $5,000/share based on AMZN's track record of TAM-expanding decisions that elongate its growth runway, drive higher profitability, and lower shareholder risk via revenue-stream diversification; b) $4,500/share based on Services, now at 43% of Sales at a 19% operating contribution which dwarfs e-commerce profits; c) Media Asset Values of about $500B; and d) $4,500/share based on Ecosystem Value, because adding groceries, Video, Twitch, Music, etc. to the bundle keeps Prime subscribers in AMZN's ecosystem an extra 3 years and grows their LTV by 50%."
Note: This call occurred after the bell on Tuesday.
Cowen initiated the electric vehicle maker and said it had "confidence" the company can drive revenue growth and shares even higher.
"We see Nikola as an intriguing investment opportunity, leveraging one truck platform, 2 power train options and 3 business segments, with optionality in powersports, pickups and AVs. We believe the partner ecosystem derisks the ramp in production in '21. We highlight that ~50% of the revenue stream is fuel related. ... .We have high confidence the ecosystem can drive revenue growth and a path to mid-teens EBITDA margins over time."
Read more about this call here.