Daniel Ek, CEO and co-founder of Spotify AB.
Akio Kon | Bloomberg | Getty Images
Here are the biggest conversations on Wall Street on Monday
Evercore ISI downgraded Spotify to "underperform" from "in line"
Evercore said it was concerned that Spotify could generate a gross return as investors requires .
"While our view is that SPOT user and revenue estimates have been achieved, we believe that the stock's last rally reflects an overly optimistic perception of the path of gross margin and potential label negotiation results. We simply do not see a way out of which SPOT can generate the level on gross profits required by Street estimates in the medium term. "
Jefferies upgraded Deere to" buy "from" hold "
Jefferies said it believes that agricultural basics ultimately" turn "1
UBS upgraded Hostess Brands to" buy "from" neutral "
UBS said it believes the stock has 25% upside.
"The hostess offers a favorable event path and we identify three catalysts for why we believe TWNK shares will surpass and have ~ 25% stock upside. First, the hostess sales steps (per Nielsen data) accelerate as it launches new breakfast product lines and regains shelf space. Second, the recent acquisition of a Chicago Bakery plant, which had been under-operated under previous ownership, has given Hostess new capability in breakfast categories and a $ 2 billion EBITDA deposit bridge Yearly (to + $ 25m in FY20 from – $ 15m in FY18) Third, TWNK is at pace to generate $ 350-400m in FCF over three years, and we estimate this could reduce debt utilization to ~ 2.5x and transfer $ 2 / share in enterprise value to equity holders. "
Cowen upgraded United Technologies to" surpass "from" market perform "
Cowen said it is bullish on the company's merger with Raytheon.
"We like UTX for extended aviation context and the proposed RTN merger. Its 5% + selloff vs S & P since contract notice gives a win-win for attractive standalone valuation or merger benefits. We walk our assessment to Outperform for a PT at $ 150. "
Stephens named Electronic Arts as a" best idea "
Stephens said it likes the playmaker's upcoming album of releases.
"In the console room, we continue to be buyers of both Take-Two and EA, but We are pinning our best idea to EA as we see more short-term catalysts for them. With the Apex Legends Season 2 beginning July 2, the data shows that Fortnites popularity has risen and Season 2 is launching on time to catch up, we do not predict that Apex will darken Fortnite again as it did in February, but we have confidence that the updates Respawn will do for season 2 will bring back one We see a bull case scenario where Season 2 can generate $ 150 miles in revenue, probably leading up to EA's FY guidance. "
Wedbush upgraded Dunkin's" Brands to "surpass" from " neutral "
Wedbush said it believes the company's sales increase in the same store is" underappreciated. "
" We believe Dunkin & # 39; US is becoming a bend in SSS growth as underappreciated by Street. in our opinion, probability The reason for a persistent bend beyond the near time is now high enough to guarantee a more positive attitude. Therefore, we upgrade the shares of DNN to OUTPERFORM from NEUTRAL. "
MoffettNathanson lowered his alphabet price target to $ 1,250 from $ 1,290
. Moffett said it is concerned about the alphabet's growth trends.
" Having analyzed Google's economic impact reports, we see a nearby trend trend. US application revenue growth seems to have been steadily eroding in recent years. Nevertheless, this has been masked in general results, as other Google companies, such as YouTube, Cloud or Hardware, seem to have accelerated to make up for core weaknesses. Stephens downgraded international paper to "equilibrium" from "overweight"
Stephens downgraded shares, and the prize money for the container table was too "unpredictable."
"We reduce our assessment on International Paper shares to Equal – Weight from Overweight to reflect the damage done to the investor's confidence in the growing unpredictability of the issue of container table prices, as well as continuing new capacity announcements that promise to keep the need for economic downtime high . "
Loop Capital upgraded Tempur Sealy to" keep "from" selling "
Loop said it is more positive after the company's deal to re-enter the Matrass Firm.
"We increase our rating from selling to wait and increasing our price target from $ 50 to $ 70 on TPX after announcing that it will return to the Mattress Firm and will also become the primary provider of Big Lots (BIG: $ 29.98 Hold) Although there has been a lot of discussion about TPX renegotiation with the Mattress Company, the Big Lots deal was more a surprise as this category has grown strongly to BIG with another supplier over the past few years. an increased likelihood of potential additional rates that may slow down the tide of cheaper imported mattresses that grow rapidly through emerging sales channels. "
Morgan Stanley downgraded Occidental Petroleum to" equilibrium "from" obese "
Morgan Stanley said it is" extreme risk "for the stock if oil prices move lower.
"We expect OXY to restore something if its -18% underperformance since the company's interest in APC was first highlighted in media reports on April 12; however, the performance of the agreement remains important for the stock to re-evaluate meaningfully higher. reports, the planned acquisition sees free cash flow increasing to OXY, but it also creates influence to the highest in our coverage, and as a result we see a wide range of outcomes for the stock, with excessive risk if oil prices move lower. estimates that every $ 5 decline in oil prices will increase influence with ~ 0.5x + while reducing dividend coverage – a potentially challenging OXY situation to navigate. "