Dropbox, Boston Beer, Dunkin’ Brands & more

Dropbox CEO Drew Houston and Dropbox co-founder Arash Ferdowsi (C) celebrate the launch of Dropbox’s initial public offering as they ring the opening bell at Nasdaq MarketSite, March 23, 2018 in New York City.

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Here are the biggest calls on Wall Street on Wednesday:

Bernstein initiated Dropbox as ‘underperform’

Bernstein said the file hosting service would face competitive “headwinds” in its initiation of the stock.

“We believe DBX is facing accelerating competitive headwinds from major cloud vendors in both the consumer & business markets for file storage & sharing, in addition to new regulatory headwinds (e.g., GDPR) which also incrementally benefit the mega-scale cloud vendors. “

Atlantic Equities upgraded Electronic Arts to ‘overweight’ from ‘neutral’

Atlantic Equities said it sees the game maker with “double digit earnings per share growth” over the next few years.

“We are upgrading EA to Overweight – the shares have traded sideways since we turned Neutral in October but the company looks on track to generate double digit EPS growth for the next couple of years. With estimates reset, margin expansion should drive near term beats and FIFA remains one of the best vehicles to generate long-term growth in gaming. “

Macquarie upgraded Boston Beer to ‘outperform’ from ‘neutral’

Macquarie said recent data showed “momentum” in the company’s portfolio.

“We raise our PT to $460, a 135%premium to the SP500, based on our estimates for 15% and 24% average annual sales and EPS growth over the next three years. SAM is the only public company that generates a high % of sales in hard seltzer (about 30%), which is growing over 100% and which we expect will continue to take share from mainstream beer due to its low-cal profile and adaptability to many flavors. “

Bank of America upgraded WW to ‘outperform’ from ‘underperform’

Bank of America double upgraded the stock after the company’s earnings and said it saw a “greater” potential for sales and earnings acceleration amongst other things. WW is the company formerly known as Weight Watchers.

“After a tumultuous year, we are upgrading WW to Buy from Underperform and raising our price target to $27 from $25. End-of-period subscribers have stabilized, +1.5% y/y in Q2, and with plans for increased marketing support in what is a typically quieter part of the season (summer/fall), an upcoming innovation for the 2019/20 peak diet season, better communication of the ‘new WW’ and margin flexibility, we see greater potential for sales and earnings acceleration, which we believe could drive a material re-rating in shares. “

Argus upgraded Dunkin’ Brands to ‘buy’ from ‘hold’

Argus said in its upgrade that it likes the company’s “strong” franchise program and “established” brands.

“We expect higher comps and accelerated store openings at Dunkin‘ Donuts U.S. to be driven by a range of factors,
including drive-thru lines dedicated to mobile orders, brighter interior designs, espresso machines, digital order boards, and a tap system serving coffee, iced tea and cold brew. “

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