A McDonald’s customer with french fries at the fast-food chain McDonald’s in New York, October 22, 2019.
Shannon Stapleton | Reuters
Here are the biggest calls on Wall Street on Monday:
Piper Jaffray downgraded McDonald’s to ‘neutral’ from ‘overweight’
Piper downgraded the stock after the company’s CEO change and said that these kinds of changes are “disruptive.”
“It is by now fairly common knowledge that McDonald‘s has made a change at the CEO level. Albeit unfortunate, we believe the company acted in a timely and effective manner for the reason if only company policy was violated. While fundamentals are solid (nowhere more apparent than last week’s earnings results), changes of this magnitude tend to be disruptive. Our experience leads us to take a more cautionary view noting the potential lack of momentum and time involved in formalizing a new team.”
Read more about this call here.
Nomura Instinet downgraded Verizon to ‘neutral’ from ‘buy’
Nomura downgraded the stock and said AT&T’s new price reduction would put pressure on Verizon’s revenue growth prospects.
“We upgraded Verizon in 2017 on the premise that service revenue growth would return to healthy growth. We now fear progress should ebb. AT&T’s new price reductions, and T-Mobile’s likely response, reduce visibility into Verizon’s near-term growth trajectory and lower our confidence into its long-term ability to lift pricing for 5G. We reduce our estimates and target.”