Wall Street’s Top Calls For Wednesday: Alphabet Downgraded At UBS, RBC Places $108 Price Target On Sarepta & More
Wall Street analysts are constantly updating and tweaking their outlook on individual stocks and the market as a whole. Wednesday’s trading session was no exception as several notable and bold calls were made.
UBS Turns Bearish On Alphabet
Investor sentiment towards Alphabet (NASDAQ: GOOG) has been nearly unanimous – the company is growing at an impressive rate, especially when factoring its sheer size. Wall Street for the most part agreed that Alphabet’s story is nothing but bullish.
However, James Dix, an analyst at Wedbush, broke rank and downgraded Alphabet’s stock to Underperform from Neutral with a price target slashed to $700 from a previous $800.
The analyst’s revised price target implies the stock will fall by more than $100. Of particular concern to the analyst is Google’s recent mobile search ad changes which could negatively impact ad revenue.
Investors don’t seem to be concerned though as Alphabet’s stock erased early morning losses on Wednesday and was trading near flat in the afternoon.
Sarepta A $100-Plus Stock
Sarepta Therapeutics (SRPT) stock was trading at just $8.00 a few months ago but a recent FDA decision to approve its Eteplirsen therapy helped boost the stock above $60 per share.
On Wednesday, RBC Capital Market’s Simos Simeonidis maintained an Outperform rating on Sarepta’s stock with a price target boosted to $108 from a previous $83.
Surprisingly, the analyst’s bullish stance stems from the commercial prospects of another therapy, EXONDYS 51.
Investors and traders appear to have taken notice and shares of Sarepta hit a new 52-week high of $63.73 Wednesday afternoon and were higher by more than 6 percent on the day.
Amazon Gets More Love
Anthony DiClemente, an analyst at Nomura, initiated coverage of e-commerce giant Amazon.com (NASDAQ: AMZN) with a Buy rating and $950 price target.
The analyst’s bullish stance for Amazon is quite simple: Amazon is not only a winner in the $2 trillion e-commerce space, it is pulling consumers away from the $24 trillion offline retail space. DiClemente continued that every 1 percent of the e-commerce market represents a $15 billion revenue opportunity for Amazon, or $0.65 in incremental earnings per share.
Amazon’s stock hit a new 52-week and all time high of $830.14 on Wednesday and if the analyst’s thesis is right, there is still plenty of upside remaining.