The Roku IPO at the Nasdaq, September 28, 2017.
Here are the biggest calls on Wall Street on Monday:
Needham raised its price target on Roku to $150 from $120
Needham said Roku’s “value proposition” among advertisers is “growing.”
“Key take-aways from this report include: a) given similar valuations, we prefer Roku to NFLX; b) Roku’s value proposition to advertisers is growing; c) SVOD rev shares represent upside to Roku estimates in 2020 and 2021; d) Roku is the dominant internet aggregator for streamed TV & movie content, like YouTube is for user generated content, at about 1/20th the valuation. “
Cantor Fitzgerald upgraded Humana to ‘overweight’ from ‘neutral’
Cantor Fitzgerald said it liked the health insurer’s strong second-quarter results, growth in its Medicare Advantage business and effective cost management.
“The company recently posted strong 2Q19 results, driven by continued success in Medicare Advantage and cost management. MA continues to grow at a nice clip, and HUM‘s recent Louisiana Medicaid contract award demonstrates its success outside Medicare. Importantly, we believe the company’s investments in population health management and social determinants of health will accelerate growth over time. “
Credit Suisse upgraded News Corp to ‘outperform’ from ‘neutral’
Credit Suisse said the diversified global media company was “showing consistency” despite its recent earnings revenue miss.
“Despite 4Q19 miss at the revenue line, NWS has delivered another solid EBITDA result ahead of CSe and consensus. Current trading levels imply that the value of NWS’s assets has effectively halved since the split from FOX back in 2013. We don’t think this is justified given the underlying performance, and an increasing focus from management on value can act to close the valuation. “
Evercore ISI downgraded Occidental Petroleum to ‘in line’ from ‘outperform’
Evercore said the energy producer’s acquisition of Anadarko makes Occidental larger but less valuable.
“The company’s ‘Pledge’ for greater capital discipline and enhanced corporate governance proved fleeting with ROCE to decline significantly due to the Anadarko transaction. The commensurate decline in valuation places OXY at a 10-year low in the equity market. “