Amgen upgraded, Texas Instruments 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:
Leerink upgraded Amgen (AMGN) to Outperform from Market Perform with a price target of $318, up from $267, noting that the rating change is both a multiple-expansion and earnings-upside call.
Raymond James upgraded Take-Two Interactive Software (TTWO) to Outperform from Market Perform with a $170 price target. Following a "relatively slower period" in front-line releases, the firm sees a number of reasons to become incrementally more optimistic in the company's near- and medium-term path forward.
BofA upgraded PNC Financial (PNC) to Neutral from Underperform with an unchanged price target of $121 as part of a broader research note on U.S. Banks. The company's relative capital positioning is a significant positive, which should allow PNC to capture market share opportunities, as evidenced by the recent acquisition of Signature's loan portfolio, the firm says.
Goldman Sachs upgraded Shoals Technologies (SHLS) to Buy from Neutral with a price target of $28, up from $27, implying 85% upside from current levels. The firm is "tactically more bullish," saying the overhang from recent warranty expense issues appear to be priced into the shares.
B. Riley upgraded Coherent (COHR) to Buy from Neutral with a price target of $51, up from $37. The firm admits to underestimating the value of the company's silicon carbide business, saying transaction with Denso and Mitsubishi Electric values the silicon carbide business at $3B, or 10-times fiscal 2024 revenue.
Top 5 Downgrades:
Oppenheimer downgraded Texas Instruments (TXN) to Perform from Outperform without a price target ahead of the fiscal Q3 report on October 24. The firm sees sustained margin pressure as the company invests in capacity.
Piper Sandler downgraded Arista Networks (ANET) to Neutral from Overweight with an unchanged price target of $190. The firm has concerns around 2024 networking spend and says Arista's valuation is reflecting a more balanced risk/reward profile at these levels.
Raymond James downgraded HubSpot (HUBS) to Outperform from Strong Buy with a price target of $520, down from $600. The firm believes the stock's significant outperformance year-to-date sets up a more balanced risk/reward scenario relative to historical levels.
BofA downgraded Timken (TKR) to Underperform from Neutral with a price target of $74, down from $100, as the firm sees a "no pain, no gain" theme as it looks towards 2024 in its Machinery, E&C and Waste coverage.
JPMorgan downgraded RXO Inc. (RXO) to Underweight from Neutral with a price target of $16, down from $17. The firm continues to see material risk to consensus estimates, especially in a lower for longer freight rate environment.
Top 5 Initiations:
UBS initiated coverage of Boeing (BA) with a Buy rating and $275 price target. The firm notes that the fundamental demand backdrop for aircraft is strong, stating that the 20% pullback in the stock over the past two months prices in a significant amount of near-term supply chain risk.
Needham initiated coverage of Robinhood (HOOD) with a Hold rating without a price target. The firm sees a balanced risk/reward profile, citing the company's "still-declining" crypto trading volume and uncertainty around the return of the "retail stock trader" on monthly active users.
UBS initiated coverage of Lockheed Martin (LMT) with a Neutral rating and $470 price target. The firm sees low-single digit budget growth, with the 25% trailing two-year investment increase yet to flow through to revenue.
BofA resumed coverage of Amgen with a Neutral rating and $290 price target after the Horizon Therapeutics deal closed following "almost a year of tortuous FTC review."
BofA reinstated coverage of Unilever (UL) with an Underperform rating and $44 price target. While the firm likes the current organizational structure and strategic focus and expects share gains in Beauty & Wellbeing, Home Care and Nutrition, BofA expects next year's performance to be challenged.
