American downgraded, United upgraded: 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:
Redburn upgraded United Airlines (UAL) to Buy from Neutral with an $80 price target. The firm cites its preference for international airlines and a more positive view on the impact of fewer narrow-body deliveries on both capex and growth over the coming years for the upgrade. [Read more]
Wells Fargo upgraded DraftKings (DKNG) to Overweight from Equal Weight with a price target of $37, up from $28. The company's earnings report showed it is capturing market share, capitalizing on an improved product, and limiting operating expense growth, the firm tells investors in a research note. [Read more]
Piper Sandler upgraded Monster Beverage (MNST) to Overweight from Neutral with a price target of $63, up from $60. The share pullback makes Monster's risk/reward more attractive, the firm argues. [Read more]
UBS upgraded Wayfair (W) to Buy from Neutral with a price target of $110, up from $72. The company's low valuation multiple does not fully price in its "favorable intermediate term set-up," the firm says. [Read more]
Guggenheim upgraded Fortinet (FTNT) to Buy from Neutral with a $70 price target. While Fortinet faces several headwinds heading into the second half of the year, the company is not structurally impaired and its competitive position has not deteriorated, the firm says. [Read more]
Top 5 Downgrades:
Redburn downgraded American Airlines (AAL) to Neutral from Buy. The firm notes that American has the greatest exposure to the more competitive domestic market and the greatest near-term sensitivity to rising fuel prices. [Read more]
Guggenheim downgraded Cloudflare (NET) to Sell from Neutral with a $50 price target. The firm sees execution risk at Cloudflare and believes the stock "has gotten way ahead of itself." [Read more]
Redburn downgraded Southwest (LUV) to Sell from Neutral with a $27 price target. Despite having a "best-in-class" balance sheet, Southwest's unit revenues will continue to face downward pressure, which is not expected by consensus, the firm says. [Read more]
Oppenheimer downgraded Sage Therapeutics (SAGE) to Perform from Outperform without a price target after the FDA rejected zuranolone for treatment of major depressive disorder based on lack of effectiveness. [Read more] RBC Capital also downgraded Sage Therapeutics to Sector Perform from Outperform with a price target of $25, down from $71, [Read more] while Wedbush cut Sage Therapeutics to Neutral from Outperform with a price target of $22, down from $51. [Read more]
Craig-Hallum downgraded MasTec (MTZ) to Hold from Buy with a price target of $98, down from $113. The firm notes MasTec reported mixed Q2 results while guiding the rest of the year lower. [Read more]
Top 5 Initiations:
BofA initiated coverage of Fortrea Holdings (FTRE) with an Underperform rating and $27 price target following its spinoff from Labcorp (LH) last month. The late-stage contract research organization, or CRO, is better as a standalone entity, but has underperformed peers historically and the firm doesn't see this changing quickly, the firm added. [Read more]
Seaport Research initiated coverage of Pentair (PNR) with a Buy rating and $88 price target. Since the 2018 spin out nVent (NVT), management has "upgraded all aspects of the company's model," the firm says. [Read more]
Seaport Research initiated coverage of Fortive (FTV) with a Buy rating and $92 price target. The firm sees more upside to margins and expects an acceleration in deals in the near-term. [Read more]
Seaport Research initiated coverage of Ametek (AME) with a Buy rating and $195 price target. The firm sees multiple sales opportunities and is forecasting upper-single digit earnings growth over its forecast period. [Read more]
Benchmark initiated coverage of Global-e Online (GLBE) with a Buy rating and $50 price target ahead of the company reporting Q2 earnings on Tuesday, August 8. [Read more]
