Tesla CEO Elon Musk poses on the red carpet as he arrives for the 43rd “Golden Steering Wheel” awards on November 12, 2019 in Berlin.
Tobias Schwarz | AFP via Getty Images
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Here are the biggest calls on Wall Street on Wednesday:
KeyBanc downgraded KB Home to sector weight from overweight
KeyBanc downgraded the home builder after the company posted a big beat on the top and bottom line for its third-quarter earnings on Tuesday and said it momentum was “limited” in the near term.
“KBH‘s 20.6% gross margin and 27% y/y order growth both exceed guidance and Street expectations, yet we think FY21 momentum is limited near term on community growth, supporting our downgrade, despite favorable operating metrics and a discount to peers. … .We think KBH’s comments on FY21 revenue amid robust 2H20 gross margin supports a favorable FY21 outlook, despite rising input costs.”
JPMorgan downgraded Waste Management to underweight from equal weight
JPMorgan downgraded Waste Management mainly on valuation and possible changes in environmental regulations due to the upcoming election.
“Changes in the tax law could also slow M&A activity, but we still see runway for healthy activity levels in 2020 and into 2021. Additionally, changes in environmental regulations could require greater reductions in greenhouse gases, such as requiring landfill operators to capture more of the methane emissions from landfills.”