Amgen downgraded, Enphase 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:
Oppenheimer upgraded Enphase Energy (ENPH) to Outperform from Perform with a $133 price target. Oppenheimer expects ongoing volatility in shares but upgraded the name as it believes downside scenarios will now be fully built into expectations.
Jefferies upgraded Quest Diagnostics (DGX) to Buy from Hold with a price target of $155, up from $140. The firm believes the company's fiscal 2024 guidance is conservative and sets the stage for outperformance, especially since its "valuation reflects continued investor skepticism."
Redburn Atlantic upgraded Toast (TOST) to Buy from Neutral with a $28 price target. The firm cites the company's "underappreciated" pricing power, enhanced operating leverage and ability to sustain elevated revenue growth for the upgrade.
DA Davidson upgraded Symbotic (SYM) to Buy from Neutral with an unchanged price target of $50 following a 24% pullback in the stock on the heels of Q1 results and guidance for Q2 suggestive of what the firm considers to be necessary spending to ensure the company can further scale concurrent deployments and deliver on installation and operational milestones.
JPMorgan upgraded Crown Holdings (CCK) to Overweight from Neutral with a price target of $85, down from $86. The firm thinks Crown has reached an equity value that leads to a favorable risk/reward balance.
Top 5 Downgrades:
Leerink downgraded Amgen (AMGN) to Market Perform from Outperform with a price target of $318, down from $324. Obesity expectations have risen significantly and driven price to earnings expansion, yet detailed MariTide Phase 1 results disclosed on February 5th raise uncertainty about what Phase 2 data will show, the firm notes.
Goldman Sachs downgraded VF Corp. (VFC) to Neutral from Buy with a price target of $14, down from $19. While the firm sees opportunity for strategic transformation initiatives to drive a long-term recovery, it now has less conviction in the outlook ahead for revenue and margin performance as core brands across the portfolio have delivered sharper declines than the firm's forecasts.
HSBC downgraded Fortinet (FTNT) to Reduce from Hold with a price target of $57, up from $49, post the Q4 report. The firm thinks a slowdown in the company's sales growth and operating margin erosion will continue for the foreseeable future.
Citi downgraded Steven Madden (SHOO) to Neutral from Buy with a $41 price target ahead of the fiscal Q4 report on February 28. The firm believes Steven Madden performed well in a tough environment in fiscal 2023, but looking into 2024, margin headwinds from higher freight, potentially higher promotions and the impact of Almost Famous leave Citi more cautious on earnings upside potential.
JMP Securities downgraded Model N (MODN) to Market Perform from Outperform without a price target. The company reported mixed fiscal Q1 results and industry checks raise questions about the terminal margin profile of the business and Model N's pricing power with its largest customers, the firm says.
Top 5 Initiations:
Jefferies initiated coverage of ZoomInfo (ZI) with a Buy rating and $20 price target. The firm says the company's strong new customer growth is being masked by reductions at existing customers, which is only now stabilizing after coming off pandemic spending highs.
Jefferies initiated coverage of Sprout Social (SPT) with a Buy rating and $76 price target. The company has a market leading platform and strong partnerships, along with favorable secular tailwinds, product expansion, and increased focus on upselling, the firm says.
Goldman Sachs reinstated coverage of 4D Molecular (FDMT) with a Buy rating and $81 price target. The firm cites the positive Phase 2 intravitreal gene therapy 4D-150 data in wet age-related macular degeneration and the planned Phase 3 initiation in Q1 of 2025 for the Buy rating.
Piper Sandler initiated coverage of Civitas Resources (CIVI) with an Overweight rating and $92 price target. The firm appreciates the company's effort to exploit its "underlevered" balance sheet by expanding into the Permian, where it sees upside opportunities to optimize performance.
BofA initiated coverage of Merit Medical (MMSI) with a Neutral rating and $87 price target, which implies 10% upside. While the disposable medical device maker has several potential catalysts in 2024, it trades at a premium to comparable small-to-mid cap medtech peers, so the firm sees limited multiple expansion from here.
