Notable analyst calls this week: Disney, Super Micro and Amgen among top picks
Aug. 10, 2024 1:04 PM ET
By: Tiyashi Datta, SA News Editor
 Petri Oeschger
The S&P500 ( SP500) closed in the green on Friday, as investors digested earnings reports from big names such as Walt Disney ( DIS), Uber ( UBER) and Warner Bros. Discovery ( WBD).
Major U.S. stock indexes also ended higher on Thursday, as worries about the economy sliding into a recession were eased after initial jobless claims came in less than expected.
For the week, the Nasdaq ( COMP:IND) rose 2.8%, while Dow ( DJI) advanced 1.9%.
Wall Street had a slew of upgrades, downgrades and changes in price target from analysts. Here are some of the major calls for the week:
Disney in focus after mixed quarterly report
Seaport Research Partners lowered rating on Disney ( DIS) to Neutral from Buy, noting that it may take a couple of quarters to see more encouraging consumer and profit trends.
The company posted mixed quarterly results, with the focus on Park segment revenue miss. However, analysts said it was already weighed in.
Wells Fargo analyst Steven Cahall noted Parks weakness is "getting baked in."
BofA analyst Jessica Reif Ehrlich said given the intra-quarter commentary and competitor results, the softness in Park segment is not overly surprising.
Super Micro’s margin worries Wall Street
Following Super Micro Computer's ( SMCI) mixed fourth quarter results, BofA downgraded it to Neutral from Buy, noting that margins would remain pressured despite strong revenues.
The stock fell 7% in extended trading on Tuesday after Q4 results.
Barclays Capital maintained its Overweight rating on SMCI saying that gross margin headwinds overshadow better revenue guidance. J.P. Morgan’s Samik Chatterjee, who maintained an Overweight rating on Super Micro and a $950 PT, reiterated the same sentiment.
Amgen downgraded by Wells Fargo on limited growth profile
Wells Fargo downgraded Amgen ( AMGN) to Equal Weight from Overweight, saying the company's near- to medium-term growth profile is limited. Analyst Mohit Bansal argued that the stock already reflects a potential trial success for the company's obesity candidate, MariTide.
However, Bansal increased PT to $335 from $320 and noted that Amgen is looking to become a potential third entrant to the obesity drug market dominated by Novo Nordisk and Eli Lilly.
Airbnb receives PT cuts after disappointing guidance
Wall Street swarmed with PT cuts from BofA Securities, Wedbush, Barclays, Goldman Sachs, and J.P. Morgan, among many others for Airbnb ( ABNB) after mixed quarter results and disappointing guidance.
“While a well-run company, [Airbnb] continues to look more similar to [Booking Holdings which is experiencing] slower room night growth, higher marketing spend and investment needed to grow,” Morgan Stanley said.
Wedbush moved PT move to $135 from $165, saying with a shrinking booking window and near-term macro uncertainty, an acceleration is unlikely to materialize in the near-term.
Akamai upgraded after Q2 tops Street estimates; HubSpot gets higher rating as well
Craig-Hallum upgraded Akamai ( AKAM) to Buy after second quarter results and outlook exceeded expectations. The analysts noted that a mix shift to higher growth businesses has set Akamai up well for organic acceleration and rising margins in 2025.
The brokerage, which has a PT of $125 for the stock, believes it will see improving non-GAAP operating margins as well.
KeyBanc Capital Markets upgraded HubSpot ( HUBS) to Sector Weight from Underweight after second quarter results beat estimates, noting that risks and valuation have come down.
Other than the stocks mentioned above, there were many analysts call through the week including Fastly ( FSLY), which received a downgrade from Piper Sandler to Neutral from Overweight after the company reduced its full year 2024 guidance by 5%. It also lowered its price target to $6 from $10.
Mizuho Securities upped its price target on Nvidia ( NVDA) ahead of its fiscal second-quarter results later this month, saying the semiconductor firm continues to see strong orders for the line of accelerators.
Raymond James upgraded Lattice Semiconductor ( LSCC) to Outperform from Market Perform after a recent pullback in the stock, with analyst Srini Pajjuri stating a "gradual" recovery could come as inventory normalizes. |
