The most talked about and market moving research calls around Wall Street are now in one place. Here are today’s research calls that investors need to know, as compiled by The Fly.
Top 5 Upgrades:
-
Needham upgraded Netflix (NFLX) to Buy from Hold with a $700 price target after its Q1 earnings beat. Gen-AI will benefit “tech-first” companies the most, and Netflix qualifies, the analyst tells investors in a research note.
-
Morgan Stanley upgraded Shopify (SHOP) to Overweight from Equal Weight with a price target of $85, up from $74. The analyst says share gains upmarket by Shopify support confidence in the durability of the company’s growth against tempered consumer spending expectations.
-
Wells Fargo upgraded First Solar (FSLR) to Overweight from Equal Weight with a price target of $250, up from $187. Wells upgraded First Solar due to its relative stability and several potential catalysts.
-
Craig-Hallum upgraded Rush Street Interactive (RSI) to Buy from Hold with a price target of $8, up from $7. The firm sees opportunity in the recent stock selloff and notes that its checks point to strong trends continuing in 2024.
-
Wolfe Research upgraded Bank of America (BAC) to Outperform from Peer Perform with a $42 price target. While some of the bank’s net interest income pressures should persist in a “higher-for-longer” interest rate backdrop, Bank of America’s Q1results reflecting better asset repricing trends, Wolfe says.
Top 5 Downgrades:
-
Canaccord downgraded Netflix to Hold from Buy with a price target of $585, down from $720. Despite “mostly solid results and outlook,” the firm sees limited growth catalysts for the next few quarters and with the stock up 90% over the last 12 months, and thinks investors “may be well served to look elsewhere for upside.”
-
Wells Fargo downgraded Sunnova Energy (NOVA) to Equal Weight from Overweight with a price target of $6, down from $11. While some companies can afford to wait for rates to fall and the residential solar market to rebound, Sunnova has upcoming debt maturities and tight liquidity, the analyst tells investors in a research note.
-
Jefferies downgraded Ulta Beauty (ULTA) to Hold from Buy with a price target of $438, down from $585. The analyst has a “more cautious” view regarding the company sustaining mid-single-digit comps growth due to increasing competition, aging brand mix, and a normalizing category.
-
Keefe Bruyette downgraded Synovus Financial (SNV) to Market Perform from Outperform with a price target of $38, down from $46. The analyst says net interest income headwinds are pushing the company’s 2024 revenue growth guide to the low end of the range.
-
Piper Sandler downgraded Magnolia Oil & Gas to Neutral (MGY) from Outperform with an unchanged price target of $29. The analyst cites valuation for the downgrade following the stock’s strong relative performance despite core Giddings well performance degradation in fiscal 2023.
Top 5 Initiations:
-
Loop Capital initiated coverage of Instacart (CART) with a Buy rating and $46 price target. The firm is positive on the company’s wide-margin leadership position in grocery delivery in the U.S. which has also been “gaining share.”
-
Loop Capital initiated coverage of DoorDash (DASH) with a Buy rating and $170 price target. The stock is trading at a valuation premium vs. many of its peers, but that is justified by a higher growth rate, best-in-class execution and earnings power that is meaningfully understated by investment in new categories, new regions and new products, the analyst says.
-
Lake Street initiated coverage of Cellebrite (CLBT) with a Buy rating and $13 price target. Cellebrite has “long been recognized as the go-to provider” of software that enables law enforcement agencies to unlock and download data from smartphones and computers, but in January of this year it announced a more comprehensive offering called Case-to-Closure, or C2C, the firm says.
-
TD Cowen reinstated coverage of EQT Corporation (EQT) with a Hold rating and $43 price target after the company announced its intention to sell a 40% interest in its non-operated natural gas assets in Northeast Pennsylvania.
-
JMP Securities initiated coverage of RMR Group (RMR) with a Market Perform rating and no price target. The analyst views the company’s income stream as “highly durable,” backed by long-term management contracts.