Evercore ISI downgrades Spotify (SPOT, $149.93) to ‘Underperform’ and lowers its price target to $110 from $125, saying it thinks the recent rally in the stock reflects an overly optimistic view of the company’s gross margin path and potential outcomes from label negotiations.

At last week’s high of $154.29, Spotify shares had rallied 28.5% from the May 23 low of $120.05.

Rosenblatt raises its Shopify (SHOP, $328.94) price target to $395 from $295 after the company announced its new fulfillment network, which removes the last major pain point for merchants. 

The plan to partner with and connect seven major fulfillment hubs in the U.S. to its merchants clearly stole the show at the company’s partner and investor event, says the firm.

Rosenblatt believes Shopify is quietly emerging as the direct-to-consumer platform of choice for CPG companies that are being squeezed on the margin by Amazon (AMZN) and Walmart (WMT).

Wedbush starts Pinterest (PINS, $28.12) at ‘Outperform’ with a price target of $33, saying the social media company is well positioned to capture greater wallet share due to the commerce-intent nature of the platform. The firm admits the current valuation is expensive, but thinks Pinterest should be able to scale up to roughly EBITDA breakeven in 2020.

Needham starts coverage of RingCentral (RNG, $118.40) at ‘Buy’ with a price target of $140, calling the company the clear leader in the UCaaS market. The company is benefiting from an ongoing shift to the cloud from premises-based communications, a strong product, early recognition of the effectiveness of the channel and superior execution, says Needham.

While competitors look to own the stack, Needham says its research suggests RingCentral’s best of breed strategy has been as asset as the company has moved up-market, selling to more demanding (but economically attractive) mid-market and enterprise accounts. 

Needham says it remains watchful of an evolving competitive landscape—most notably the emergence of Zoom Video (ZM, $100.07) as a new competitor—but believes RingCentral remains well positioned to continue to deliver strong growth and increasing profitability.

RingCentral’s Q1 total revenue rose 34%. For 2019, the company now expects revenue of $862 million to $866 million (representing growth of 28% to 29%), revised upward from the previous guide of $847 million to $859 million.

OpCo thinks NVIDIA (NVDA, $146.81) will be able to reaccelerate revenue growth to 20%+, driven in part by AI accelerator attach rates expected to “rise materially” in the years ahead given the continued proliferation of neural networks. 

The firm sees few challenges to NVIDIA’s dominance in the training market. 

OpCo maintains its NVDA price target of $190.

KeyBanc lifts its Atlassian (TEAM, $130.92) price target to $142 from $121, saying the company is a best-in-class collaboration software provider with multiple paths to sustain 30%+ growth in subscription revenue over the next few years.

SunTrust raises its Salesforce (CRM, $149.32) price target to $189 from $183 following yesterday’s big news of the acquisition of Tableau Software (DATA, $163.72) in an all-stock deal valued at more than $15 billion.

While SunTrust says the deal introduces some execution risk, the firm also thinks it “brings together integration, customer and data technologies into a Customer 360 platform story.”

Tableau Software is a core holding in the Tech-Stock Prospector Small-Cap Portfolio. The stock was added in April 2014, when it was trading at $63.38.

SunTrust starts Lyft (LYFT, $59.17) at ‘Buy’ with a price target of $68, calling the company a “compelling pure play” in the North America Transportation-as-a-Service (TaaS) segment. 

The firm sees Lyft benefiting from secular and demographic trends. SunTrust believes the company has a sustainable growth path for years to come.