Uber, Estee Lauder Upgrades Among Today's Top Calls On Wall Street

UBER UPGRADED ON 'AGILE' MODEL: Daiwa analyst Jairam Nathan upgraded Uber (UBER) to Outperform from Neutral with an unchanged price target of $34. With a "global and diversified portfolio," along with a "strong" market position, Uber is better positioned to take on near-term headwinds and capitalize on the structural trends towards ridesharing and delivery, Nathan tells investors in a research note. While rides volume and regulations are near-term headwinds, Uber is "agile enough to flex their business model to the changing scenario," says the analyst. As such, Nathan believes Uber "will be able to arrive at a workable solution longer term" in California.

ESTEE LAUDER UPGRADES: Morgan Stanley analyst Dara Mohsenian upgraded Estee Lauder (EL) to Overweight from Equal Weight with a price target of $233, up from $196, following the company's quarterly results. Mohsenian sees key value drivers as still intact long-term post-COVID, particularly skincare momentum and a shift to ecommerce, and more COVID-challenged areas as likely to recover. The analyst adds that Estee Lauder's 2H21 EPS guidance and long-term margin guidance from the Q4 earnings call provided more visibility.

DA Davidson analyst Linda Bolton Weiser also upgraded Estee Lauder to Buy from Neutral with a price target of $231, up from $183. The analyst notes that while the company reported a "worse than feared" Q4 earnings loss and the stock fell 6.7% yesterday, she is raising her modeled expected forward earnings multiple to 39-times from 33-times as Estee Lauder's performance is "projected to improve" from here. Bolton Weiser further cites the company's China markets being in "full recovery, travel retail declines slowing to 30%, and noting that its sales in July grew on an annual basis, making Estee Lauder's Q1 guidance likely "conservative."

WORKDAY STARTED AT SELL: Loop Capital analyst Yun Kim initiated coverage of Workday (WDAY) with a Sell rating and $140 price target. The analyst is cautious about the company's current growth trajectory, noting it is dependent on the successful execution of "multiple growth vectors" while sustaining its core human capital management business. Channel checks indicate that many large organizations were already scaling back plans for large scale business application deployment, including Workday, starting this year prior to COVID, Kim tells investors in a research note. Further, checks show Workday's large-scale HCM business is currently under pressure and will likely remain weak well into next year, as many large organizations are focused on other higher priority initiatives such as cloud migration and cloud-based security deployments, says the analyst. As such, Kim believes the company's overall growth could lag the industry and its peers when the IT spending rebounds.

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