Evan Spiegel, CEO and co-founder of Snap Inc.
Adam Galica | CNBC
Here are the biggest calls on Wall Street on Tuesday:
Stifel upgraded Snap to ‘buy’ from ‘hold’
Stifel upgraded Snap and said it was “optimistic on the company’s growth prospects going forward.
“Based on improving DAU / pricing trends, we are upgrading SNAP shares to Buy and raising our Target Price to $17. Although 2Q:19 could see noise related to a significant sales force reorg., we are increasingly optimistic about Snap’s growth prospects in 2H:19 and beyond. We do not currently forecast a reacceleration in revenue growth but see a higher likelihood of one occurring in the next several quarters as the company continues to expands its advertiser base, foster engagement with premium monetizable content (Discover, Games), and improve engagement / retention on Android devices (particularly in emerging markets). “
Read more about this call here.
Rosenblatt initiated Snap as ‘buy’
Rosenblatt said it thinks average revenue per user levels could double by 2023.
“We initiate SNAP with a Buy rating and $18 DCF-based price target, reflecting ~28% upside from its 7/19 closing price. Present ARPU levels are well below social media peers, providing room to comfortably double by CY23E. Near-term, SNAP shares should ride modest ARPU tailwinds from new ad products and video content, and carry into CY20E with Audience Network, scaling ad spend beyond the company’s tapped out US user demo. “
UBS initiated RealReal as ‘overweight’
UBS said the online luxury retailer has a marketplace model that’s “unique.”
“In examining its long-term opportunity, we see a few key themes that should appeal to investors: a) early innings of online penetration for consignment (REAL’s 2018 GMV is <1% of a ~$198bn TAM); b) REAL is exposed to key industry secular trends (increasing acceptance of resale; growing millennial & Gen Z luxury consumers; offline to online shift; increasing focus on sustainability); and c) REAL‘s marketplace model is unique in that the same consumer is increasingly playing a role on both sides, driving a flywheel effect of consumer demand & product supply. “
Bank of America upgraded Columbia Sportswear to ‘buy’ from ‘neutral’
Bank of America upgraded the retailer mainly on valuation.
“The valuation is in-line with peers incl. NKE, ADS GR & VFC but at the high end (15-25X) of COLM‘s historical range given: 1) an outlook for significant near-term revenue and EPS upside led by a strong U.S. wholesale environment for Columbia apparel; (2) significant under-penetration in footwear, with strong visibility for COLM’s long-term growth outlook (incl. additional distribution at Foot Locker); and (3) healthy and stable margin outlook driven by Project Connect. “
BMO lowered its price target on Facebook to $195 from $200
BMO lowered its price target on Facebook ahead of earnings and said revenue re-acceleration may be “prolonged.”
“We now expect revenue to decelerate through 1Q20 (vs. 4Q19 previously), before accelerating again in 2Q20 as Stories demand/pricing ramps. However, if targeting capabilities are materially hindered, revenue re-acceleration may be prolonged.”
Loop Capital initiated Bloomin’ Brands as ‘buy’
Loop said it views the restaurant hospitality company with a “compelling” risk/reward.
“Top-Line Drivers + Compelling Risk/Reward... We are initiating coverage of Bloomin’ Brands with a Buy rating as we see a disconnect in valuation vs. the company’s fundamentals and therefore view the risk/reward as compelling. “
Goldman Sachs upgraded Murphy Oil to ‘buy’ from ‘neutral’
Goldman said amongst other things that the petroleum and natural gas company could see further “upside” from exploration.
“We upgrade MUR to Buy from Neutral and incorporate its recently closed Gulf of Mexico asset acquisition (from LLOG) and Malaysian asset divestiture (to PTTEP). We see potential for greater appreciation of offshore assets from above-expected FCF/production in 2020 and rising confidence in growth in 2022. “