Workday and Vizio coverage initiations also among notable calls
Check out today’s top analyst calls from around Wall Street, compiled by The Fly.
‘ONE OF THE CROWN JEWELS OF SOFTWARE’: Wells Fargo analyst Michael Turrin initiated coverage of Adobe (ADBE) with an Overweight rating and $770 price target. The analyst views Adobe as “one of the crown jewels of software,” citing its “solid” core positioning as the de-facto toolkit for creatives, digital tailwinds tied to experience, and its “best-in-class” financial prole of 20%-plus revenue growth and 40%-plus free cash flow margin. Further, he sees a path for 20%-plus earnings expansion “far into the future.”
BUY SALESFORCE, WORKDAY: Wells Fargo analyst Michael Turrin initiated coverage of Salesforce (CRM) with an Overweight rating and $325 price target. The analyst’s diligence “suggests there is more left in the growth tank than meets the eye” for Salesforce. Turrin sees a favorable backdrop for front-office and revenue-generating software, which he thinks “presents room for a catch-up in performance” of the shares.
The analyst also started Workday (WDAY) with an Overweight rating and $320 price target. Workday’s second quarter results helped to “rekindle interest” in back-office software from investors, but the shares have generally lagged as the company’s growth has shown signs of slowing, Turrin said. Nonetheless, his checks suggest that favorable trends – including a rebound in sales activity, uptick in interest from key verticals, and investments into added sales capacity and product – are coming together in a way that he thinks can drive “a healthy multi-year growth curve for Workday moving forward.”
ON THE SIDELINES: Cannonball Research analyst Vasily Karasyov initiated coverage of Vizio (VZIO) with a Neutral rating and $21 price target. The analyst thinks gross profit growth will likely be the only stock price driver in the next twelve months for Vizio. Conditions for a re-rating closer to Roku’s (ROKU) multiple “won’t be in place yet,” Karasyov told investors in a research note.
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