Investing

Top Analyst Upgrades and Downgrades: Alexion, American Water Works, Apple, Schwab, Crowdstrike, FedEx, IBM, Microsoft, Nvidia, Ryanair, Tesla and More

FedEx Corp. (NYSE: FDX) was named as the Zacks Bear of the Day stock. The firm said that Fred Smith pulled no punches on the call blaming a weaker global economy on tariff uncertainty and bad politics. Shares last closed at $156.63 and have a consensus price target of $170.52.

Hexcel Corp. (NYSE: HXL) was raised to Outperform from Neutral at Credit Suisse after evaluating its Woodward Inc. (NYSE: WWD) merger, with Woodward shares also raised to Outperform and with a $145 target price.

International Business Machines Corp. (NYSE: IBM) was downgraded to In-Line from Outperform and the target price was lowered to $145 from $160 at Evercore ISI, with the firm noting that macro headwinds and a difficult setup for the first half of 2020 warrant caution for Big Blue shares. The firm also noted that IBM’s purchase of Red Hat positions the company well to bring in more hybrid cloud sales from large enterprises but fourth-quarter expectations might have been too high based on a slower enterprise backdrop and after comments from rivals like Cisco and Dell.

Microsoft Corp. (NASDAQ: MSFT) was reiterated as Outperform and the target price was raised to $180 from $155 at Credit Suisse. The firm sees Microsoft on a path to having a $100 billion commercial cloud operation with market share gains, and the firm even set a blue-sky valuation scenario of $200 if it outperforms the strong expectations.

New Relic Inc. (NYSE: NEWR) was raised to Buy from Neutral and the target price was raised to $98 from $68 (versus a $67.30 close) at UBS. It closed down 3.1% on Friday but was indicated up 2.2% at $68.80 on Monday, and its prior consensus target price was $74.93.

Nvidia Corp. (NASDAQ: NVDA) was reiterated as Buy and the target price was raised to $300 from $240 (versus a $244.32 close) at Argus. The independent research firm said Nvidia shined at CES with more realistic lighting and shadowing in games in its video cards and from its showings in autonomous driving and robots. Needham also raised its rating on Nvidia to Hold from Underperform after management meetings at CES.

Ryanair Holdings PLC (NASDAQ: RYAAY) was reiterated as Buy at HSBC and the firm raised its overseas target price to indicate about 10% implied upside with a strong summer 2020 outlook and soft comparisons against last summer.

Salesforce.com Inc. (NYSE: CRM) was reiterated as Outperform and the target price was raised to $215 from $185 (versus a $179.60 close) at Credit Suisse. The firm believes that Salesforce will outperform in 2020 after having underperformed lately and that the move will be driven by its ability to enable digital transformations and its ability to execute against this secular trend.

SBA Communications Corp. (NASDAQ: SBAC) was raised to Buy from Neutral and the target price was raised to $280 from $214 (versus a $244.83 close) at Goldman Sachs.

Tesla Inc. (NASDAQ: TSLA) was reiterated as Outperform at Oppenheimer, but the firm boosted its target by almost 60% to $612 from $385 in the call. The firm believes that Tesla has now reached a critical scale that can generate sustainable positive free cash flow as the company has key advantages over competitors in its powertrain design and battery technology.

WEC Energy Group Inc. (NYSE: WEC) was maintained as Buy and the target price was lowered to $102 from $105 at Argus.

Friday’s top analyst upgrades and downgrades included Adobe, Alphabet, Amazon.com, Aurora Cannabis, Dropbox, Facebook, Lyft, Microsoft, Shopify, Snap, Tesla, Uber and more.


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