AppLovin upgraded, Genpact 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:
Jefferies upgraded AppLovin (APP) to Buy from Hold with a price target of $50, up from $20. The analyst now has greater confidence in the company's market share gains and price taking in its mobile ad tech segment. [read more]
JPMorgan upgraded Cognizant (CTSH) to Neutral from Underweight with a price target of $77, up from $72. The analyst says the company's "expectations bar seems low enough" against the progress on the CEO's priorities. [read more]
RBC Capital upgraded Iron Mountain (IRM) to Outperform from Sector Perform with a price target of $68, up from $58. The company's Q2 results came in ahead of expectations and it increased its quarterly dividend per share by 5% to 65c, the analyst tells investors in a research note. [read more]
Goldman Sachs upgraded Jefferies Financial Group (JEF) to Buy from Neutral with a price target of $40, up from $37. The analyst says Jefferies offers "underestimated structural, longer-term growth tailwinds, combined with best-in-class near-term revenue growth." [read more]
Raymond James upgraded Shift4 Payments (FOUR) to Outperform from Market Perform with a $74 price target. A significant portion of the company's new wins since 2022 have come from less macro dependent verticals, which is improving its overall mix and profitability, the analyst tells investors in a research note. [read more]
Top 5 Downgrades:
Daiwa downgraded Target (TGT) to Neutral from Outperform with a $134 price target. [read more]
JPMorgan downgraded Genpact (G) to Underweight from Neutral with an unchanged price target of $40. Relative to Cognizant, Genpact's stock "tolerance to continued muted" short-cycle work and any potential slowing of large deal backlog is weaker, considering a steeper second half of 2023 ramp implied in its guidance, the analyst tells investors in a research note. [read more]
Cantor Fitzgerald downgraded Aravive (ARAV) to Neutral from Overweight with a price target of 25c, down from $18, post the Q2 report. The company noted that in order to preserve cash, it has terminated its Phase 1b/Phase 2 trials of batiraxcept in clear cell renal cell carcinoma and pancreatic adenocarcinoma unless it raises more capital, the analyst says. [read more]
BofA downgraded Xcel Energy (XEL) to Neutral from Buy with a price target of $60, down from $72, following regulatory setbacks in Minnesota and Colorado. The firm, which notes that it is lowering its estimates to below the Street view, adds that it thinks potential wildfire liabilities will make a "positive re-rating challenging. [read more]
Goldman Sachs downgraded Evercore (EVR) to Neutral from Buy with a price target of $140, down from $158. The company's longer-term sales growth trajectory remains intact, which should support "best-in-class" revenue growth by 2025, the analyst tells investors in a research note. [read more]
Top 5 Initiations:
Wedbush initiated coverage of Alphabet (GOOGL) with an Outperform rating and $160 price target. The analyst says the company has successfully navigated changing industry and regulatory standards and continues to drive digital advertising innovation with new products like Performance Max "that deliver significant value to advertisers." [read more]
Wells Fargo initiated coverage of Celldex (CLDX) with an Underweight rating and $21 price target. The analyst believes Celldex's barzolvolimab will be efficacious in chronic spontaneous urticaria, but thinks the Street is overly optimistic on its commercial potential given its "less-than-ideal" safety profile, the more advanced competition and time required for Phase 3 trials. [read more]
Morgan Stanley initiated coverage of Axon Enterprise (AXON) with an Equal Weight rating and $230 price target. The analyst believes Axon has multiple growth drivers to maintain 20%-25% annual revenue growth over the coming years, but is largely reflected in the stock's valuation. [read more]
Wedbush assumed coverage of Amazon.com (AMZN) with an Outperform rating and $180 price target and also added the stock to the firm's "Best Ideas List," citing the belief that the backdrop for Amazon is beginning to strengthen with improving or stabilizing growth across the company's eCommerce, advertising, and web services verticals. [read more]
BofA initiated coverage of MSG Entertainment (MSGE) with a Buy rating and $41 price target. Following the spinoff from Sphere, the firm views the owner of Madison Square Garden and The Chicago Theatre as a "growth-oriented, pure-play live entertainment company" set to benefit from the boom in live music and entertainment events. [read more]
