Here are the biggest analyst calls of the day: Match Group, Twitter, Papa John's & more
Here are the biggest calls on Wall Street on Thursday: UBS upgraded Match Group to 'buy' from 'neutral' UBS upgraded the operator of online dating sites and said it thinks the valuation represents a "compelling" risk/reward. "We believe the LT fundamental drivers remain intact: a) the moat (growth & scale) around Tinder is widening; b) efficient allocation of marketing dollars across a family of brands to produce operating leverage & outsized returns; & c) MTCH mgmt remains top notch in terms of capital allocation across its own equity, new brand/product launches & potential M & A. We think current valuation represents a compelling risk/reward with the IAC spin-off (expected in 1H'20) acting as a potential catalyst - we upgrade our rating to Buy and see 30%+ upside to our new $88 PT." Evercore ISI downgraded Twitter to 'underperform' from 'in line' Evercore downgraded the stock and said it was concerned about the social media company's rising costs. "While bulls will continue to point to a potential return to the > 15% GAAP OI margins achieved in FY18 as an opportunity, in our view, 2018 represented a period of unsustainably high margins; last year, TWTR reaped the benefits of a period of sustained underinvestment. This underinvestment, in our view, played a key role in causing the "bugs" that resulted in last quarter's surprise revenue miss. While we believe 3Q's specific tech issues can be addressed in coming quarters, if TWTR is to approach the level of long-term revenue growth implied by consensus, the prerequisite will likely be ongoing growth in R & D spend at rates faster than those of revenue." Read more about this call here . Guggenheim upgraded Capri Holdings to 'buy' from 'neutral' Guggenheim upgraded the company after its earnings report and said that sentiment surrounding the handbag space was too "negative" "We believe sentiment on the handbag space is overly negative, creating a favorable risk/reward for CPRI . While the business faces several challenges, warranting a depressed multiple, we believe the strength of Capri's brands and their multi-year earnings potential is under-appreciated. Based on recent commentary from TPR and CPRI, we believe the handbag category is more stable than valuations imply." MKM downgraded Papa John's to 'neutral' from 'buy' MKM downgraded Papa John's on valuation among other things. "This marked the first quarter under CEO Rob Lynch's stewardship and it showcased a top line that included positive domestic same store sales and is beginning to lay the foundation for a potential turnaround. If these major accomplishments speak to both stabilizing results and the integration of the team and strategy, it could result in a prolonged successful turnaround. We are fans of the efforts and direction the company is moving, but believe as heavy lifting exists, coupled with the recent share price run and the current valuation, it is time for us to step aside and we are downgrading the shares to Neutral." Piper Jaffray downgraded Expedia to 'neutral' from 'overweight' Piper downgraded the stock and said it thinks the company faces several "multi-quarter challenges." "We are lowering our rating on EXPE to Neutral based on what we believe will prove to be multi-quarter challenges with greater dependence on higher cost marketing channels (vs. SEO), muted hotel ADR environment, and uncertainty around Vrbo bouncing back from the brand change" KeyBanc downgraded Fossil to 'equal weight' from 'sector weight' KeyBanc downgraded the fashion designer and manufacturer and said it was waiting for a turnaround in the company's wearable strategy among other things. "Unfortunately, the turnaround driven by: 1) wearable growth; and 2) traditional watch stabilization has not manifested, and we downgrade to SW. FOSL has made progress with its wearable strategy (+MSD for new gen in 3Q), but competitors continue to drive the preponderance of growth in the wearable category. The traditional category is seeing a slower rate of decline, but has not yet stabilized. Pressures in the wholesale channel remain a significant headwind as well." DA Davidson downgraded Canada Goose to 'neutral' from 'buy' DA Davidson downgraded the winter clothing manufacturer and said it had "concerns" that orders from the company's wholesale channel could be "slowing." "We are lowering our rating on GOOS from Buy to NEUTRAL over concerns that orders from the wholesale channel could be slowing from the back-half and into next year as department stores and other wholesale customers come under pressure, planning their inventory buys more conservatively. .. .Up until now, our Buy rating had been premised in part on the Street's overreaction to the 2-point top-line miss at the start of the year, but now that the stock has fully recovered - rising 30% since the beginning of the Summer - we are stepping to the sidelines until we get visibility on trends into next year." Morgan Stanley downgraded Mylan to 'equal weight' from 'overweight' Morgan Stanley downgraded the generic and specialty pharmaceuticals on valuation and growth "uncertainty." "We previously were recommending MYL stock because we expected the company to deliver accelerating growth, benefit from a moderation of US price pressure, and experience multiple expansion. We now have less conviction in improving growth, and we have lowered estimates below consensus. Our new Equal-weight rating reflects growth uncertainty balanced by low valuation."

In this photo illustration, the Twitter logo is displayed on the screen of an iPhone in front of a computer screen displaying Twitter logos. Chesnot | Getty Images

Here are the biggest calls on Wall Street on Thursday:

UBS upgraded Match Group to 'buy' from 'neutral'

UBS upgraded the operator of online dating sites and said it thinks the valuation represents a "compelling" risk/reward. "We believe the LT fundamental drivers remain intact: a) the moat (growth & scale) around Tinder is widening; b) efficient allocation of marketing dollars across a family of brands to produce operating leverage & outsized returns; & c) MTCH mgmt remains top notch in terms of capital allocation across its own equity, new brand/product launches & potential M&A. We think current valuation represents a compelling risk/reward with the IAC spin-off (expected in 1H'20) acting as a potential catalyst - we upgrade our rating to Buy and see 30%+ upside to our new $88 PT."

Evercore ISI downgraded Twitter to 'underperform' from 'in line'