AbbVie upgraded, Cisco downgraded: Wall Street's top analyst calls
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:
Barclays upgraded AbbVie (ABBV) to Overweight from Equal Weight with a price target of $170, up from $160. The firm says Friday's selloff looks like an overreaction to "external sector dynamics," against a backdrop of Immunology momentum and commentary de-risking 2024 pricing.
Wolfe Research upgraded Saia (SAIA) to Outperform from Peer Perform with a $418 price target. While trimming the firm's "high-end EPS estimates," the firm now sees a better entry point for "arguably the best LTL growth story."
BofA upgraded Chevron (CVX) to Buy from Neutral with a price target of $200, up from $190. The response to earnings that leaves Chevron shares 15% lower since the Hess (HES) merger was announced "looks overdone," the firm tells investors.
Raymond James upgraded L3Harris Technologies (LHX) to Outperform from Market Perform with a $210 price target. The firm says the business appears to be bottoming post the Q3 print.
Oppenheimer upgraded Invitation Homes (INVH) to Outperform from Perform with a $35 price target. Rent growth and occupancy are normalizing, but should remain above pre-COVID levels next year amid higher mortgage rates and limited inventory, the firm says.
Top 5 Downgrades:
Raymond James downgraded Cisco Systems (CSCO) to Market Perform from Outperform without a price target. The firm believes declining campus sales, which likely amount to about a third of the company's sales, decline in 2024 and contribute to an overall sales decline.
Baird downgraded Datadog (DDOG) to Neutral from Outperform with a price target of $84, down from $100. The firm still sees "multiple long-term positives," but its industry conversations suggest optimization headwinds are likely to continue into next year
Wells Fargo downgraded Aon plc (AON) to Underweight from Equal Weight with a price target of $304, down from $317. The company's organic growth in Q3 was 6%, below all its insurance broker peers, and its price performance "will be muted" at least until Aon sees a rebound in organic growth, the firm tells investors in a research note.
Truist downgraded Krispy Kreme (DNUT) to Hold from Buy with a price target of $13, down from $20. The firm says the current GLP-1 overhang on packaged food stocks will not dissipate for 6-12 months, if not longer.
JPMorgan downgraded Valley National (VLY) to Neutral from Overweight with a price target of $10, down from $11, post the Q3 report. With the implied cost of equity of the shares now in the range of peers, the shares no longer appear as mispriced as they did in June, the firm tells investors in a research note.
Top 5 Initiations:
Wells Fargo initiated coverage of Verisk Analytics (VRSK) with an Equal Weight rating and $230 price target. The firm says that while the company's shift to pure-play insurance exposure is positive, the stock's valuation is full at current levels.
BofA initiated coverage of Cooper Companies (COO) with a Buy rating and $380 price target. The second-largest contact lens manufacturer with 26% share is better positioned than its three main competitors to capitalize on favorable industry trends, the firm tells investors.
Morgan Stanley resumed coverage of Safehold (SAFE) with an Overweight rating and $33 price target. Safehold owns the longest-duration assets in REITs and "investors have lost confidence in ability to originate new leases and scale," but the firm's sum-of-the-parts analysis suggests "excess value of properties at lease end is nearly free."
BofA initiated coverage of Kimbell Royalty Partners (KRP) with a Buy rating and $19 price target. The firm estimates a potential total one-year return of about 30% for the small cap partnership whose strategy is anchored on acquiring oil and gas minerals across the Permian, Mid-con, Haynesville, Eagle Ford, Bakken, Appalachia and DJ basins.
RBC Capital initiated coverage of NewAmsterdam Pharma (NAMS) with an Outperform rating and $25 price target. The firm believes the Street is overlooking the company given past failures of CETP inhibitors and gradual launches of recent lipid drugs.
