Robinhood coverage initiation and Raytheon Technologies upgrade also among notable calls
Check out today’s top analyst calls from around Wall Street, compiled by The Fly.
FUTURE HYBRID WORK STATE: KeyBanc analyst Steve Enders upgraded Zoom Video Communications (ZM) to Overweight from Sector Weight with a $428 price target. The analyst sees Zoom benefiting from a “future hybrid work state” in which video and cloud communications stand as long-term priorities in enterprise IT budgets. A recent chief investment officer survey suggests enterprise adoption of video platforms will continue into 2022 as businesses return to office environments with 97% of respondents maintaining or increasing their spend, Enders told investors in a research note. In addition, the analyst believes the Five9 (FIVN) acquisition should transform Zoom’s model and support a “second leg to growth” as the company prepares to navigate a post-pandemic hybrid world.
‘ATTRACTIVELY’ PRICED: Guggenheim analyst Michael Morris upgraded Spotify (SPOT) to Buy from Neutral with a price target of $265, up from $245. The stock is down nearly 40% from February which makes it more attractively priced against its long-term potential, Morris told investors. He contended Spotify has “established a sustainable position as the global audio industry leader” and should have “modest premium pricing power” over coming quarters.
Meanwhile, UBS analyst Batya Levi upgraded Spotify to Neutral from Sell with a price target of $240, up from $235. The analyst cited the company’s improved financial results, expectations for better monthly active user trends post-pandemic, traction with new initiatives and a more attractive valuation given the stock’s underperformance. Further, Levi believes that Spotify is a “secular winner” in the audio space given the size of its user base and its pace of innovation.
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