Brinker upgraded, Berkshire Hathaway 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:
Stifel upgraded Brinker (EAT) to Buy from Hold with a price target of $45, up from $38. The analyst came away from investor meetings with management more constructive regarding Chili's turnaround efforts.
Jefferies upgraded Ball Corp. (BALL) to Buy from Hold with a price target of $64, up from $63. With the stock's multiple re-basing back to pre-2019 levels, free cash flow reaccelerating, and fundamentals "at a trough," Ball's risk/reward is attractive, the analyst tells investors in a research note.
Loop Capital upgraded Bumble (BMBL) to Buy from Hold with an unchanged $18 price target. The stock has fallen 30% year-to-date and has been de-risked at its 52-week low, the analyst tells investors in a research note.
Northcoast upgraded Texas Roadhouse (TXRH) to Buy from Neutral with an $118 price target.
Raymond James upgraded Trimble (TRMB) to Outperform from Market Perform with a $65 price target following the majority divestiture of its agriculture business for $2B yesterday. The divestiture clears the leverage and ag distribution concerns that catalyzed the firm's downgrade, the analyst tells investors in a research note.
Top 5 Downgrades:
Edward Jones last night downgraded Berkshire Hathaway (BRK.A) to Hold from Buy. The analyst says the stock's valuation now reflects Berkshire's positives after rallying to all-time highs.
Wolfe Research downgraded ResMed (RMD) to Peer Perform from Outperform without a price target. Wolfe's sleep doctor survey suggests mid-term risks from GLP1s and a potential Philips re-entry, the analyst tells investors in a research note.
Mizuho downgraded Sunoco LP (SUN) to Neutral from Buy with an unchanged price target of $53. The firm's fundamental outlook on Sunoco is unchanged and "screens constructive."
Odeon Capital downgraded M&T Bank (MTB) to Hold from Buy with a $133.65 price target. The firm's adjustment to its rating "does not reflect any negative views concerning management or the operating decisions," but is due to the macro-financial outlook of the next 12 months, the analyst says.
Mizuho downgraded USA Compression (USAC) to Underperform from Neutral with an unchanged price target of $22. The company has benefited from fundamental tailwinds at its compression business and is one of the top performers stocks in the group year-to-date, but shares now appear overvalued, says the firm.
Top 5 Initiations:
HSBC initiated coverage of FedEx (FDX) with a Buy rating and $330 price target. The analyst says even partial success in the company's efforts to reduce costs by $6B by fiscal 2027 "could go a long way towards boosting investor confidence."
Oppenheimer initiated coverage of Ingredion (INGR) with an Outperform rating and $120 price target. The business-to-business ingredient and solutions provider is "a market leader" in specialty starches, the analyst tells investors.
Raymond James last night initiated coverage of AbbVie (ABBV) with an Outperform rating and $177 price target. The company appears to be managing the Humira U.S. loss of exclusivity better than original expectations, while at the same time executing very well with Skyrizi and Rinvoq driving significant growth across multiple indications within its key immunology franchise, the analyst tells investors in a research note
UBS initiated coverage of AtriCure (ATRC) with a Buy rating and $56 price target. The analyst expects the company to grow sales at 17% annually through 2025 as new products' ease of use, efficiency, and clinical outcomes encourage procedural growth and adoption.
HSBC initiated coverage of Palo Alto Networks (PANW) with a Hold rating and $242 price target. The analyst says the U.S. technology sector is experiencing tailwinds that will bolster operating performance for some companies, but not all.
