Apple downgraded, Oddity 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:
Wolfe Research upgraded KeyCorp (KEY) to Peer Perform from Underperform without a price target. The firm says upside from "higher-for-longer" interest rates is roughly in balance with the risks associated with the bank's capital shortfall position.
Citi upgraded LyondellBasell (LYB) to Buy from Neutral with a price target of $106, up from $104, ahead of the company's Q3 earnings report. The firm notes that recent run-up in oil prices has the firm "more constructive on cyclical commodity chemical names, especially given recent selloffs."
BofA upgraded Oddity (ODD) to Buy from Neutral with a price target of $37, down from $60. The firm thinks the recent pullback in the shares presents "an attractive buying opportunity," noting that the stock is 16% below its IPO price.
Wolfe Research upgraded Hub Group (HUBG) to Outperform from Peer Perform with a $98 price target as part of the firm's Transport Q3 preview report. The firm sees "a below average multiple on what we think is trough earnings," prompting its upgrade.
Wolfe Research upgraded Matson (MATX) to Outperform from Peer Perform with a $113 price target as part of the firm's Transport Q3 preview report. The stock is "materially outperforming," providing a "bit of a better entry point," the firm says.
Top 5 Downgrades:
KeyBanc downgraded Apple (AAPL) to Sector Weight from Overweight without a price target. The firm cites valuation for the downgrade, saying Apple is trading near all-time-high multiples and a large premium to the Nasdaq versus history.
Truist downgraded Sunrun (RUN) to Hold from Buy with a price target of $12, down from $30. The firm says that while the company will continue to take share given its strength in TPO financing, equity price response following Q2 results makes it clear that the market is no longer rewarding outsized growth while companies continue to compete in the "land grab" U.S. residential space.
Truist downgraded Sunnova Energy (NOVA) to Hold from Buy with a price target of $11, down from $35, as part of a broader research note on Solar and Energy Storage ahead of the sector's Q3 results. The sector remains in a phase of valuation rationalization under which balance sheet strength and steady profitability will play an increasingly important role in equity performance, the firm says.
Wolfe Research downgraded Ryder (R) to Peer Perform from Outperform without a price target as part of the firm's Q3 Transport preview. While Ryder has managed this downturn quite well so far with tailwinds from strong leasing pricing, Wolfe sees EPS risk into next year with continued muted freight demand, further downside to used truck prices, and potentially moderating leasing pricing gains.
Piper Sandler downgraded B&G Foods (BGS) to Underweight from Neutral with a price target of $8, down from $14, telling investors that U.S. measured retail sales trends are running behind the firm's expectations for Q3.
Top 5 Initiations:
UBS initiated coverage of Fiverr (FVRR) with a Buy rating and $33 price target. The company's volumes lead overall job listings by two or more quarters, and job listings have started stabilizing, the firm says.
UBS initiated coverage of Upwork (UPWK) with a Neutral rating and $13 price target. While the company's total addressable market is large, its volume is strongly correlated with job listings which continues to decline, even if the decline has started moderating, the firm argues.
UBS initiated coverage of ZipRecruiter (ZIP) with a Neutral rating and $13 price target. The firm says ZipRecruiter's revenues are almost perfectly correlated with job listings, which continues to decline.
Stifel initiated coverage of DT Midstream (DTM) with a Buy rating and $60 price target, calling the stock "a lower risk way to play the growth in natural gas volumes as LNG continues to grow."
TD Cowen initiated coverage of Lithium Argentina (LAAC) with an Outperform rating and $14 price target following its separation from Lithium Americas Corp. BMO Capital also resumed coverage of Lithium Argentina but with a Market Perform rating and $7.50 price target.
