Block upgraded, Rivian 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:
Wells Fargo upgraded Block (SQ) to Overweight from Equal Weight with a price target of $95, up from $65, following the Q4 report. The firm says that after years of skepticism, the combination of the Q4 strength, fiscal 2024 guide-up, a "reasonable" stock valuation, and "well-articulated" strategy for delivering growth amid cost discipline deserves a rating upgrade. Seaport Research also upgraded Block to Buy from Neutral with a $95 price target.
JPMorgan upgraded Fluence Energy (FLNC) to Overweight from Neutral with an unchanged price target of $23. The 13% share decline yesterday following the issuance of a short report is overdone and presents a buying opportunity, the analyst tells investors in a research note.
Raymond James upgraded Carvana (CVNA) to Market Perform from Underperform without a price target. While the Q4 report was in-line with expectations, the firm sees favorable wholesale and retail spreads continuing along with structural improvements in the business.
Citi upgraded Fox Corp. (FOXA) to Buy from Neutral with a price target of $35, up from $34. The firm's analysis shows the sports joint venture will be a positive for Fox.
Argus upgraded Church & Dwight (CHD) to Buy from Hold with a $115 price target. The firm is positive on the management having refocused the company's "power brands," which are either number one or number two in their respective product categories with high growth and high margins, the analyst tells investors in a research note.
Top 5 Downgrades:
UBS downgraded Rivian Automotive (RIVN) to Sell from Buy with a price target of $8, down from $24. The analyst had been optimistic on Rivian's product and brand ultimately winning out, but a rapidly changing electric vehicle backdrop caused the firm to reassess its demand view and makes the company's current strategy "quite onerous on the ramp to profitability and cash flow.
Morgan Stanley downgraded Brighthouse Financial (BHF) to Underweight from Equal Weight with an unchanged price target of $52. Although Brighthouse is guiding to improving operating metrics longer term, they are still below industry leaders, the analyst tells investors in a research note.
JPMorgan downgraded Nio (NIO) to Underweight from Neutral with a price target of $5, down from $8.50. The firm's revised 2024 revenue forecast is about 10% below the consensus, which assumes a sales volume forecast of around 220,000 to 240,000 units, higher than the firm's 191,000 units.
Craig-Hallum downgraded Vicor (VICR) to Hold from Buy with a price target of $40, down from $65, arguing that the company's "large" Q4 miss and "complete lack of forward guidance" implies a "much lower outlook for some time."
Northland downgraded Sunnova Energy (NOVA) to Market Perform from Outperform with a price target of $9, down from $12, citing the rising customer termination rate. With the stock down greater than 20% in yesterday's trading, Sunnova's results and commentary were "clearly viewed in a very negative light" and it "probably doesn't help" that peer Sunrun (RUN) also reported a Q4 miss and conservative outlook, the firm said.
Top 5 Initiations:
Guggenheim last night initiated coverage of Pfizer (PFE) with a Buy rating and $36 price target. The shares have significantly underperformed over the past two years since the COVID-19 pandemic increased investor hopes regarding the potential for the company's COVID-19 vaccine, Comirnaty, and oral anti-viral treatment Paxlovid, the analyst tells investors in a research note.
Baird initiated coverage of Nuvalent (NUVL) with an Outperform rating and $105 price target. Nuvalent is going after "a validated approach and validated targets, but getting better results," says the analyst, who notes that the company's ALK and ROS1 tyrosine kinase inhibitors are demonstrating strong efficacy and improved safety in Phase 1/2 in lung cancer.
Jefferies initiated coverage of Incyte (INCY) with a Buy rating and $81 price target. The company's "cornerstone asset" Jakafi has propelled high growth for the past decade, and the 2028 loss of exclusivity will likely result in a $2.6B revenue hole, the analyst tells investors in a research note.
Piper Sandler assumed coverage of Park National (PRK) with a Neutral rating and $130 price target. The analyst assumed coverage of six Ohio based banks. The firm sees an attractive economic backdrop in Ohio and an active merger and acquisition scene.
Roth MKM initiated coverage of CPI Card Group (PMTS) with a Buy rating and $40 price target. The firm expects the period of issuer inventory digestion to clear by the second half of 2024, lifting the company's outlook.
