The additions to the firm's Best Ideas List come as investors and analysts, reeling from the tumultuous past month for stocks, are seeking potential bright spots amid the COVID-19 pandemic. The Standard & Poor's 500 index tumbled 12% in Monday's session alone and is now down 30% from the closing high it reached Feb. 19.
Wedbush said it views online retailer Amazon.com as "uniquely positioned to gain meaningful market share across a number of verticals in a multitude of countries driven by coronavirus-related changes in consumer behavior." The firm noted consumers appear to be spending more time and money online to avoid crowds, to limit their time searching for sold-out items, and to adhere to government recommendations and rules restricting nonessential traffic.
"Although Amazon and many consumers and investors alike will be disappointed by the company's inability to effectively shoulder the increased burden related to coronavirus fears, we view the unexpected surge in demand as a high-class problem for the company that makes its Q1:20 guidance, which was provided before coronavirus had started to noticeably impact the West, seem like a relic of a different time in history," Wedbush said.
Over the long term, Wedbush added, it expects Amazon to adapt its supply chain and delivery network best practices, and sees "consumers' increasing reliance on the company at present to result in the acceleration of market share capture that should benefit Amazon and its investors for the next several years." The firm maintained their outperform rating on the stock with a 12-month price target of $2,325.
For Facebook, Wedbush said it expects the social networking company has likely seen increased user engagement "and hence ad impression growth across multiple properties driven by coronavirus fears."
The firm added: "Given the seemingly unprecedented and unrelenting volume of news related to the global pandemic, the reliance that a large percentage of the world's population has on Facebook as its primary source of information, and an increasingly-pervasive stay-at-home attitude accentuated in some instances by the government, we believe that many Facebook users have been accessing its properties at meaningfully elevated levels over the last several weeks."
Wedbush maintained its outperform rating on Facebook and $250 price target.
Peloton, meanwhile, is poised to benefit from what Wedbush sees as "the early stages of the 'work-in' trend, a long-term shift toward at-home fitness, based on a combination of worsening time poverty and evolving technology."
Wedbush thus said it sees Peloton "as a potential beneficiary of widespread social distancing efforts, accelerating what we believe is already an inevitable shift." Peloton is given an outperform rating and 12-month price target of $22.25 at Wedbush.
As for Regions Financial, the firm said it sees the bank as one of the "best-positioned banks to handle this unprecedented rate environment due to its hedging strategy."
Price: 149.50, Change: +3.49, Percent Change: +2.39
|Earnings Projection for Zynex in 2021 Bumped Up|
|2020, and 2021 Earnings Estimates for Zscaler Scaled Up|
|Joyy Inc's 2021 Earnings Forecast Lowered|
|Consensus for Yandex NV 2020 Earnings Decreased but ...|
|Consensus for Williams Sonoma Q2 and 2022 Forecast P...|