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Tesla, Apple, Citi, Verizon, and more




A Tesla Model S (L) and Model X are displayed at a Hong Kong Shopping Mall on March 10, 2019.

Vivek Prakash | AFP | Getty Images

Here are the biggest talks on Wall Street on Thursday:

Barclays lowered his Tesla's prizes to $ 150 from $ 192

Barclays said Tesla has "stalled like a niche cup."

"To Many years ago, we outlined our" reality "-based opinion of why we disagreed with the optimistic dreams of TSLA admirers, and then TSLA as overrated. (See Red-pilling Tesla bull case, April 7 201[ads1]7) While for many of the two intervening years the market disagreed with our perception, the latest price trend – even in the face of a successful increase in revenue – shows that more market participants come to our view. In this note, we go back to the key principles of The red pill / blue pill debate In addition, we update our probabilistic valuation model to reflect a higher probability of TSLA storage as a niche machine, reducing PT to $ 150 from $ 192 and repeating our UW rating. "

Read more about this call here. [19659004] Morgan Stanley lowered his price cap on Apple to $ 231 from $ 240

Morgan Stanley expects Apple to split up to be "choppy."

"Given the risk of further restrictive trading measures, we respond to the investor's top questions. We expect stocks to remain rude, with a long-term floor of around $ 160. Our estimates are unchanged, but peer-multiple contraction drives our PT to $ 231 ( from $ 240. "

Goldman Sachs upgraded Citi to" buy "from" neutral "

Goldman said it looks" 21% upward potential. "[19659006]" We are upgrading C to buy from Neutral, as we see a realistic path to a 13% ROTCE in 2020E (100bps ahead of market expectations) which is not conditional on higher interest rates or the strengthening of global growth trends, although there is a danger that C can get away from their 13.5% + ROTCE target, there is neither consensus expectation for 2020 (12% ROTCE) nor the current valuation discount C that achieves the goal. "

UBS downgraded Verizon to" neutral "from" buy "

UBS sees" difficult comps in front "for Verizon, but says that ak the sea is well positioned as a defensive investment.

"We downgrade Verizon to Neutral and maintain our 12 month NPT at $ 59 / sh. We continue to believe that Verizon is well positioned as a defensive investment with LSD core growth and sustainable returns. We expect wireless basics (85% of EBITDA) remains healthy, backed by a rational pricing environment and cost savings. Having said that, with valuation back in line with historical levels and harder conditions ahead of us, we see a more balanced risk reward. "

Guggenheim upgraded Comcast to" buy "from" neutral "

Guggenheim upgraded the stock market to growth in broadband business and said that NBCU operates at a very high level.

"The telecom and cable services industry is experiencing seismic change, with winners and losers coming. For Comcast, turning from primarily a video distributor to a connectivity company has been fairly steady. Comcast's strong broadband gain underscores the company's successful broadband pivot, increasing margins and lower capital intensity, the wireless business shows stable gains, and NBCU continues to operate at a very high level, Comcast's best-in-class uFCF return further supports our upside issue for the stock, upgrade to buy, PT to $ 52. "

Stephens upgraded Zynga to" overweight "from" equilibrium "

Stephens said it likes Zynga's management and is bullish on the company's new game launches.

"Under Frank Gibeau, Zynga has had a threefold approach to growth, 1) live services, 2) new game launches, 3) M & A. We feel considerably more confident in each of these areas now than we did when we launched equilibrium in January, with the stock up 57% ytd, one can point out that the market agrees with this notion, to ensure we are not late for the story, we decided to rewrite Zynga by valuing each of them In our opinion, this "sum-of-the-parts" analysis shows that the risk / reward of today's price is very skewed and you get an almost free call option on the company's robust new gaming slate and likely Deutsche Bank says the company have margins "below" some of their peers.

"Our 2020E EV / EBITDA based valuation is $ 9 / sh (using 5.0x EV / EBITDA versus the last 15 year average of 5.5x) and our DCF -based valuation is $ 13 / sh (with a discount p 9.0%). Using a 50/50 mix of the two valuations results in a $ 11 / sh PT and an implied 17% downside to the current share price. While the share price has already declined from the last few hikes, we are concerned that ND / EBITDA will increase to a peak of 4.5x on our forecasts (higher than 4x is indicated as comfortable by management, and well over 1.3x in 2018), the company's longer term still has margins below some peers on our forecasts, and in an overall steel market that lacks discipline, we believe that X's share price will remain under pressure. In 2023, X still has the lowest FCF return on our 7 shares under cover, as well as the highest Capex / EBITDA ratio. The company commits itself to large projects that have once started, will be difficult to get out of. "

Deutsche Bank downgraded Nucor to" hold "from" buy "

Deutsche said the steel machine's basics are" deteriorating. "[19659006]" Our EVE / EBITDA-based valuations for 2020 are $ 46 / sh (with 6.5x EV / EBITDA versus the last 15 year average of 6.8x) and our DCF-based valuation is $ 60 / sh (with a discount rate of 8.0%). Using a 50/50 mix of the two valuations results in a NPT of $ 53 / sh and an implied 4% up to the current share price. NUE has surpassed its closest peer STLD (-14% versus -26% over the last 6 months against S & P500 + 5%) with some differences in product sales mix (eg NUE has more plate exposure that has been a relatively better market) . Despite the heavy capital expenditure (spread over 10 projects in total – $ 3.5 billion) with $ 2.9 billion over 2019-22, the company is expected to generate excess money and thus maintain dividends and provide modest buybacks, and The company can therefore maintain a relatively flat ND / EBITDA profile overall. By splitting capex across a large number of projects, the company can control timing / balance movements / capital management. But with market sensitivity likely to be negative for once and fundamentally worsening, we believe the shares may be rangebound for once. "

Bank of America downgraded Canada Goose Holdings to" neutral "from" buy "

Bank of America downgraded the shares after the company's earnings said it saw a decline in" US revenue growth "

" We downgrade Canada Goose to Neutral (from Buy) and lower our PO to C $ 54 / US $ 40 (from C $ 93 / US $ 70) based on our 25X F2021 EPS of $ 2.15 (rolls out our valuation base to F21 from F20) which we believe A vantage point to slow down the GOOS directly to the consumer channel guarantees a lower P / E more. GOOS reported F4Q19 adjusted EPS of $ 0.09 (versus our $ 0.03) driven primarily by wholesale revenue + 12.6% (versus our 5.0%), while growth in direct growth of 29.1% was in Thread with our model, but broke a pattern of significant DTC revenue upside that GOOS had posted since its IPO (March 2017). In addition, sales growth in the US reduced to just + 6%, a significant deceleration from 40% + growth over the past 2Q, despite a further company's top store of 3 US stores last year. "

Bank of America downgraded Teva Pharmaceuticals to" underperform "from" buy "

Bank of America called the ongoing trial, an" overhang. "

" We downgrade TEVA to Underperform (from Buy) for three reasons: 1) legal exposure – TEVA has exposure to various ongoing opioid litigation. Although we are not legal advisers, we believe that TEVA has credible defense in opioid suits, but financial disadvantages are difficult to concentrate. Although this has been a known risk factor for several months, the latest sector depreciation for us shows that a final clearing event for the warehouse is needed. However, the high fragmented nature of opioid lawsuits creates an obstacle to a global championship. Although the majority of cases have been consolidated in the MDL procedure, only track 1 (Ohio cases) can make a binding decision (potentially 1H20), the rest of the cases can extend to 2021+; 2) Updated Valuation – Our updated $ 9 / shr DCF valuation includes $ 3.5 billion in present value ($ 5.1 billion gross) for potential legal exposure from separate opioid and pricing litigation, still reflecting a one-time premium (EV / EBITDA) versus levered, distressed spec pharma peers; 3) catalysts – lack of upside for important brands and American generic pipeline that is interesting but insufficient on choice. Our new PO is now based on DCF (was EV / EBITDA). "

Raymond James downgraded Toll Brothers to" market perform "from" outperform "

Raymond James said the homebuilder has experienced a" greater degree of price pressure "than the company realized.

" We lower our rating at Toll Brothers to Market Perform (from Outperform) following a review of last week's F2Q19 results, leaving us worried that reduced estimates, lack of upcoming catalysts, and long-lasting West Coast issues will leave closely spaced stocks. Unfortunately, a greater degree of price pressure than we anticipated has come up in TOL's markets, which led to increased sales incentives and reduced FY19 gross margin guidance. Also, our updated analysis of re-sale market conditions suggests that increased y / y re-sale inventory at TOL's price points will remain a challenging issue this summer, most notably in California, Seattle and Dallas. Furthermore, we find TOL's new guidance projecting the FY19 operating results well below our previous expectations, leading to a deteriorating level in the future ROIC and ROE (reaching only 9% and 11%). TOL's current valuation remains exciting both in absolute and relative terms (1.1x / 1.3x GAAP / adjusted book value vs. 1.6x peer average). However, we feel that TOL can demonstrate marginal stability and reactive ROIC calculations. TOL will remain a "show-me" story. "

Credit Suisse lowered his Kraft Heinz's price target to $ 26 from $ 33

Credit Suisse lowered the Kraft Heinz price target due to the ongoing SEC survey.

" We lowered our TP to $ 26 from $ 33 and our future estimates at KHC under management guidance due to the possibility that the SEC survey by the company continues to reveal breakdowns in the company's internal controls and adversely affect the company's future prospects. There is also considerable uncertainty related to potential dilution from divestments and reinvestment needs. We lower our FY19 and FY20 EPS well below consensus to $ 2.68 (from $ 2.80) and $ 2.61 (from $ 2.85). "

BMO called Boston Scientific as a" top pick "

BMO said that medical equipment company has the" richest pipeline "in its coverage.

" We add BSX to our top selection list, join PODD and WMGI , and increase our goal to $ 46 from $ 44 (based on 24-25x 2020E EPS or a $ 44-46 range). BSX weathered a 1Q19 miss and reset the 2019 guide, but there are several upcoming catalysts, including: 1) the FDA Paclitaxel panel (June 19/20), 2) its June 26 analyst meeting (and pipeline update) and 3) close by BTG (mid 2019E). We repeat our Outperform assessment: BSX stands out with high-digit, organic sales growth, operational lever and double-digit EPS. "



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