Uber and Lyft downgraded: Wall Street's top analyst calls
The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.
Top 5 Calls:
Nomura downgraded Uber Technologies (UBER) to Neutral from Buy with a price target of $62, up from $59. With the stock up 155% year-to-date, investors have rewarded the company for profitably scaling its business model and consolidating its market position in the ridesharing market in U.S. and Canada, the analyst tells investors. At this time, the firm thinks most of the catalysts for the stock are already priced in and Uber is fairly valued at the current price.
Nomura also downgraded Lyft (LYFT) to Reduce from Neutral with a price target of $13, up from $11.70. The analyst sees limited room for Lyft to increase take-rates further as driver spending growth outpaces driver earnings growth. In addition, the firm does not see any near-term pathways for the company to address the "drag" on earnings from its bike-sharing business. Once the current rebound in travel subsides in 2024, Lyft's "subscale" market positioning, and lack of cross-selling opportunities could constrain sales growth for the company, the analyst tells investors. Nomura says that despite the stock's recent outperformance, business fundamentals remain difficult.
Canaccord initiated coverage of Annovis Bio (ANVS) with a Buy rating and $36 price target. Lead candidate buntanetap is in Phase 3 testing for early Parkinson's disease and Phase 2/3 study for mild-to-moderate Alzheimer's disease, noted the analyst, who calls PD and AD "high-risk/high-reward indications" with high unmet need. The firm argues that success even in one of these indications "could drive significant upside if data-related events play out favorably."
H.C. Wainwright says recent comments from GSK's (GSK) commercial head in an interview with the Financial Times and in comments published by The Sunday Times late last week appear to indicate that Verona Pharma (VRNA) could be an attractive takeover target. GSK Chief Commercial Officer Luke Miels indicated that the company would be seeking acquisitions in the $2B range over the next six months to boost its pipeline and Miels highlighted assets in the respiratory and autoimmune disease arenas and indicated that GSK would preferentially focus on single-asset or dual-asset entities, the analyst tells investors.
After Grifols (GRFS) announced the sale of a 20% stake in Shanghai RAAS to the Chinese MCN Haier Group Corporation for $1.77B, Morgan Stanley said the firm sees the valuation as "favourable for Grifols" and believes the deal will allow Grifols to reach its leverage target for the end of 2024. The firm, which calls the deal "a positive transaction achieving strategic objectives and further building management's standing with investors," has an Equal Weight rating and EUR 14 price target on Grifols shares.
