Facebook Upgrade, Roku Initiation Among Today's Top Calls On Wall Street

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Check out today's top analyst calls from around Wall Street, compiled by The Fly.

BUY FACEBOOK

BMO Capital analyst Daniel Salmon upgraded Facebook (FB) to Outperform from Market Perform with a price target of $325, up from $270. The analyst sees Apple's (AAPL) rollout of the App Tracking Transparency prompt and subsequent limitations on identifier for advertiser marking as the peak for Facebook's "headwinds from targeting." Apple's move acts as a "clearing event" for the broader issue, Salmon told investors in a research note. From here, vertical integration for e-commerce and more server-to-server integrations for advertising should help drive a narrative about Facebook having "greater control over its revenue destiny," the analyst added. He believes that while antitrust and political risk "remain acute," this is better priced into Apple shares after the recent pullback.

'SIGNIFICANT' AD OPPORTUNITY

JPMorgan analyst Cory Carpenter initiated coverage of Roku (ROKU) with an Overweight rating and $475 price target. Roku is the leading TV streaming platform in the U.S. by hours streamed, with 51M active accounts and users streaming nearly 60B hours of content in 2020, Carpenter noted. The analyst believes Roku is well positioned as TV viewing increasingly shifts to streaming. Carpenter's "bull thesis" is largely driven by the belief that Roku has a "significant" advertising opportunity, with only an estimated 8%-9% of TV ad budgets currently allocated to streaming, which "significantly lags the shift in eyeballs."

LI AUTO, NIO INITIATIONS

Jefferies analyst Alexious Lee initiated coverage of Li Auto (LI) with a Buy rating and $44.50 price target. Li One's EREV powertrain has proven a great success, which should allow it to turn operating cash flow positive and profitable earlier than peers, Lee argued. The analyst projects Li's sales to grow 100% and 86% year-over-year in fiscal years 2021 and 2022, respectively, both of which are ahead of consensus.

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