This Week, From The Analyst Community

Stock analysts can provide valuable insight into the sentiment around a certain stock or sector and shed some light on what is possible or likely for a stock.  Stirring in the analyst community can sometimes be early signs of stock movement.  Which is why our team reviews dozens of analyst research reports each and every day with the goal of finding new investment ideas for our readers. 

Of the hundred of reports we reference weekly, some stand out among the others for various reasons.  Our team has sifted through this week’s reports and whittled it down to the most pertinent moves.   

Read on for the details on some of the most impactful actions taken by brokerage firms over the past week.  

Monday, January 10th

  • Goldman Sachs analyst Mark Delaney called Tesla (TSLA) the best positioned EV stock when he raised the firm’s price target from $1,125 to $1,200, maintaining a Buy rating.  The increase reflects “robust” Q4 deliveries as the analyst sees the “material upside” as a sign that the company can sell more vehicles in 2022 and 2023.  The analyst expects Tesla to expand margins in the intermediate term as it ramps the “important” Model Y product as well as new factories in Berlin, Germany and Austin, Texas.  Given its leadership position and focus on clean transportation, TSLA is best positioned to capitalize on the long-term shift to electric vehicles, Delaney tells investors in a  note. 
  • Piper Sandler analyst Thomas Champion downgraded Airbnb (ABNB) to Neutral with a price target decrease to $169,  from $215.  Omicron headlines have “clouded the picture, the longer-duration trajectory remains one of steady recovery,” Champion tells investors in a research note.  While Airbnb remains a “top-tier asset,” the stock’s setup looks less favorable into 2022, says Champion.  He cites “elevated” Street expectations, valuation and its “alternatives pure-play focus,” which may be less desirable as travel normalizes, for the downgrade.

Tuesday, January 11th

  • Redburn analyst Charles Coldicott initiated coverage of Rivian Automotive (RIVN) with a Buy rating and $141 fair value estimate.  The analyst thinks that demand will “vastly outstrip Rivian’s ability to produce.” The company’s offerings are innovative with “incredible acceleration given the vehicles’ size,” Coldicott tells investors in a research note.  The analyst noted that Rivian beat Tesla (TSLA), Ford (F) and GM (GM) to market with the first electric pickup. This, along with the large SUV space, offers the company “enormous room to grow,” says Coldicott.  He expects Rivian to ramp up volumes to 345,000 by 2025 and 1.5M in 2030.
  • KeyBanc analyst John Vinh upgraded AMD (AMD) to Overweight with a $155 price target. The analyst believes AMD is positioned to benefit from robust high teens cloud data center growth in 2022 and should substantially outpace industry growth.
  • UBS analyst David Vogt downgraded IBM (IBM) to Sell from Neutral with a price target of $124, down from $136.  Vogt tells investors in a research note, he sees near-term risk to Q4 operating estimates and an “elevated valuation” leaves the shares “vulnerable” over the next 12 months.  The analyst says IBM is trading at over three turns above its trailing three and five-year averages, indicating the market is underwriting management’s mid-single-digit target “despite a history of execution issues.”  Moreover, he believes the shares are also pricing in 2022 and 2023 earnings estimates that are 10% higher than his estimates.

Wednesday, January 12th

  • Barclays analyst Raimo Lenschow upgraded Snowflake (SNOW) to Overweight from Equal Weight with a price target decrease to  $367, from $393.  The recent selloff in the shares creates an attractive entry point, the analyst tells investors in a research note.  He says Snowflake is a “unique asset” given its “growth profile, scale, and importance to customers, which is reflected in its best-in-class retention rates.” He noted that the stock’s valuation level is near all time lows.
  • Evercore ISI analyst Mark Mahaney upgraded DoorDash (DASH) to Outperform and added the stock to the firm’s Tactical Action & Positioning, or TAP, Outperform List.  He points out that DoorDash is “dislocated” as the shares are off 40% and now trade at close to a trough multiple.  Mahaney sees DoorDash as a “strong fundamental asset” and a “structural COVID winner” whose platform is beginning to expand “dramatically” via non-food delivery, he tells investors.

Thursday, January 13th

  • Cowen analyst John Blackledge downgraded Snap (SNAP) to Market Perform from Outperform with a price target of $45, down from $75.  The analyst expressed near-term concerns around Apple’s iOS 14.5 changes impacting Snap’s measurement, targeting and attribution for direct response ad units.  Furthermore, the company faces difficult compares in the first half of 2022 and the stock’s valuation “remains elevated,” Blackledge tells investors in a research note.  The analyst cites near-term headwinds for the downgrade.

Friday January 14th

  • Guggenheim analyst Michael Morris downgraded Disney (DIS) to Neutral from Buy, lowering the price target from $205 to $165, to reflect his updated view of the pace of profit growth at the company’s direct-to-consumer and parks businesses.  While he believes the “worst of the overall bear-case narrative is understood,” the company’s disclosure that total 2022 programming spend would increase by as much as $8B, or 32%, “feels under-appreciated in a consensus outlook,” says Morris.