Apollo Global upgraded, Dell initiated: 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:
Stifel upgraded J.M. Smucker (SJM) to Buy from Hold with an unchanged $135 price target. The firm notes that the company's base business momentum is supported by a stable of strong brands driving a balanced topline growth including volume/mix growth, making it a standout relative to its packaged foods peers.
Barclays upgraded Ecolab (ECL) to Overweight from Equal Weight with a price target of $260, up from $225. The firm says that assuming raw materials stay stable, Ecolab is back to being a "rare ESG-stalwart" that will compound earnings growth in the low double digits.
JPMorgan upgraded Apollo Global (APO) to Overweight from Neutral with a $122 price target after coverage resumption following a period of restriction. The firm sees Apollo as among the better positioned publicly traded alternative asset managers to capitalize on secular trends such as the proliferation of private credit and an aging population needing reliable income for retirement.
Raymond James upgraded Revolve Group (RVLV) to Outperform from Market Perform with a $21 price target. The firm has "growing confidence" post the company's Q4 results
Craig-Hallum upgraded Grocery Outlet (GO) to Buy from Hold with a price target of $36, up from $30. The firm notes Grocery Outlet delivered another strong report in Q4 with upside on sales and EBITDA despite drag from systems enhancements.
Top 5 Downgrades:
Piper Sandler downgraded Vizio (VZIO) to Neutral from Overweight with a price target of $11.50, down from $12. The firm cites the pending acquisition by Walmart (WMT) for the downgrade, and says it expects the transaction to close mid-year.
Bernstein downgraded Stellantis (STLA) to Market Perform from Outperform. The firm says investors have caught on to Stellantis' improved margins and cash generation with the shares up 43% over the past six months.
Goldman Sachs downgraded Enfusion (ENFN) to Sell from Neutral with a price target of $8, down from $9, implying 14% downside. The firm expects the stock to be range bound in 2024.
BMO Capital downgraded Kinsale Capital (KNSL) to Market Perform from Outperform with a price target of $544, up from $434. After the stock's 53% year-to-date rally, the firm estimates that current buyside expectations are factoring in more meaningful "beat & raises," closer to the magnitude to what investors received in 2022 and 2023, though it believes Kinsale can sustainably grow its EPS by about 20%.
William Blair downgraded Thoughtworks (TWKS) to Market Perform from Outperform without a price target. The company reported Q4 results that missed consensus estimates and introduced both Q1 and 2024 guidance below expectations, the firm notes.
Top 5 Initiations:
Loop Capital initiated coverage of Dell Technologies (DELL) with a Buy rating and $125 price target. The firm sees material upside to Street estimates through 2026 and believes Dell has an opportunity "to alter the narrative around the stock such that a material valuation re-rating can occur."
Barclays initiated coverage of Weatherford (WFRD) with an Overweight rating and $135 price target. The firm says the stock's valuation is attractive for one of the few remaining global diversified energy service companies.
Evercore ISI initiated coverage of Fractyl Health (GUTS) with an Outperform rating. A device maker like Fractyl is delivering a GLP-1 gene therapy straight into the pancreas, thereby limiting issues in the liver and other off target effects, and the reason they can do that is because of the duodenal ablation device they've been working on for 10-plus years, adds the analyst, who says "This one will be an execution and show me story."
JMP Securities initiated coverage of Gritstone Bio (GRTS) with an Outperform rating and $4 price target. Gritstone has an important Phase 2 readout for its lead GRANITE personalized cancer vaccine candidate in the coming weeks, the firm says.
Cantor Fitzgerald initiated coverage of Desktop Metal (DM) with an Overweight rating and $1.25 price target. The firm says Desktop has an attractive collection of assets with the EnvisionTEC and ExOne acquisitions providing exposure to polymers and sand-casting applications.
