Here are the biggest calls on Wall Street on Thursday:
Jefferies initiated Netflix as ‘buy’
Jefferies initiated the streaming service and said shares were compelling, among other things.
“We see 3 reasons to Buy NFLX today. 1) Addressable market is vastly underappreciated, providing significant runway for continued double digit sub growth. 2) Improving margins with path to sustained positive FCF. 3) Proven ability to create value under evolving landscape. Near-term choppiness is expected, but we advise buying dips and owning shares LT. $520 PT implies ~40x 21E EBITDA, compelling relative to its growth and well below its peak historical multiple.”
Credit Suisse upgraded CVS to ‘outperform’ from ‘neutral’
Credit Suisse said CVS had low valuation and defensive business characteristics.
“We believe Aetna’s increasing exposure to the fast-growing MA business and greater than market growth in MA provides support to its valuation. In fact, Aetna’s MA market share has increased by 300 bps since the end of 2017 to roughly 11% which compares to market share increases for the two largest MA plans (UNH and HUM, which increased 140 bps and 150 bps, respectively). Further, CVS has remained on track-to-ahead of its synergies, modernization, and transformation initiatives, which could provide future upside.”