Adobe upgraded, Salesforce 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:
Morgan Stanley upgraded Adobe (ADBE) to Overweight from Equal Weight with a price target of $660, up from $510. The firm says greater clarity on the company's artificial intelligence-enabled products and the monetization road map increase its confidence in reaccelerating the Creative Cloud organic growth engine. [Read more]
Piper Sandler upgraded Wayfair (W) to Overweight from Neutral with a price target of $97, up from $35. The home furnishings industry appears to be stabilizing based on Piper's Q2 furniture retailer survey and sales at Wayfair appear to be improving. [Read more]
BofA upgraded Hasbro (HAS) to Buy from Neutral with a price target of $85, up from $68, ahead of the Q2 earnings report on August 3. The firm expects Hasbro will report an earnings beat given strong demand for Lord of the Rings Magic, which was released in late June. [Read more]
JPMorgan upgraded XPeng (XPEV) to Neutral from Underweight with an $18 price target. The stock rallied following the unexpected announcement of Volkswagen's (VWAGY) $700M investment and strategic partnership between the two companies, the firm says. [Read more]
TD Cowen upgraded GoodRx (GDRX) to Outperform from Market Perform with a price target of $12, up from $6.50, after "game changer" PBM partnerships. [Read more]
Top 5 Downgrades:
Morgan Stanley downgraded Salesforce (CRM) to Equal Weight from Overweight with a price target of $278, up from $251. While confident in Salesforce's longer-term opportunity to further penetrate large enterprises, near-term catalysts, including margin expansion and price increases, are now in the rear-view mirror and there remains a longer path to realize GenAI benefits, the firm says. [Read more]
Bernstein downgraded Southwest (LUV) to Market Perform from Outperform. The firm has lost confidence in the earnings trajectory of Southwest, saying the company's margin recovery is lower than expected with no clear-cut exit out of near-term headwinds. [Read more]
Barclays downgraded Tractor Supply (TSCO) to Equal Weight from Overweight with a price target of $224, down from $254. The firm does not see meaningful downside risk to estimates, but struggles with the upside case amid mixed sales trends and uncertainty around the real run-rate of the business. [Read more]
Credit Suisse downgraded UPS (UPS) to Neutral from Outperform with a price target of $204, up from $200. The firm is moving to a more cautious stance given uncertainties around the company's new labor contract. [Read more]
Jefferies downgraded Carvana (CVNA) to Underperform from Hold with a price target of $30, down from $55. Consensus estimates appear to overestimate the sustainability of the company's recently elevated profitability, which has benefited from transitory tailwinds that will abate in the coming quarters, the firm tells investors in a research note. [Read more]
Top 5 Initiations:
BofA initiated coverage of GE HealthCare (GEHC) with a Neutral rating and $82 price target. The firm thinks any margin upside is already reflected in the share price and views the stock as "appropriately valued." [Read more]
BTIG initiated coverage of On Holding (ONON) with a Neutral rating and no price target. The firm expects strong growth for On, but believes this is largely anticipated by the market. [Read more]
Scotiabank initiated coverage of Argenx (ARGX) with a Sector Perform rating and $516 price target. Given the recent rally in the share price the firm recommends maintaining existing positions and being "opportunistic" in buying on a meaningful pullback. [Read more]
Wedbush initiated coverage of Keros Therapeutics (KROS) with an Outperform rating and $86 price target. The firm considers Keros Therapeutics an opportunity to invest in potential best-in-class drugs that modulate the TGF-beta signaling pathway for hematologic and respiratory/cardiovascular diseases. [Read more]
RBC Capital initiated coverage of Ambrx Biopharma (AMAM) with an Outperform rating and $29 price target. The company's lead drug ARX517 has shown early promise in a potentially blockbuster metastatic castrate-resistant prostate cancer space, and the firm sees meaningful upside potential on broader de-risking of '517 with the next data cut in Q4 of this year. [Read more]
