Dell downgraded to Sell, McDonald's 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 Upgrades:
Wells Fargo upgraded McDonald's (MCD) to Overweight from Equal Weight with an unchanged price target of $310. As broader quick service restaurant trends slow, McDonald's should "stand tall" given its innovation tailwinds, digital initiatives and the consumer "flight to value," the firm says.
Goldman Sachs upgraded Owens Corning (OC) to Neutral from Sell with a price target of $150, up from $113. The firm has been "impressed" by the company's ability to drive incremental productivity and balance production across segments as demand moderates.
Truist upgraded Vail Resorts (MTN) to Buy from Hold with a price target of $290, up from $263. The stock has had several years of underperformance but now has reached an "attractive level", the firm says.
Oppenheimer upgraded TRI Pointe Homes (TPH) to Outperform from Perform with a $36 price target. The firm notes that the stock is down 13% since mid-July, presenting an attractive entry point to own "one of the most compelling growth stories in the sector."
Top Downgrades:
Loop Capital downgraded Roku (ROKU) to Hold from Buy with an unchanged price target of $85. The firm commends the cost controls under new CFO Dan Jedda but says Roku's latest restructuring signifies the potential for slower revenue growth in 2024.
Barclays downgraded Seagate (STX) to Equal Weight from Overweight with an unchanged price target of $65. The nearline recovery continues to take longer than expected, with Q1 of 2024 now a "best case scenario for a material unit uptick," the firm says.
Evercore ISI downgraded Verint Systems (VRNT) to In Line from Outperform with a price target of $28, down from $50, following what the firm calls "a lackluster quarter" that saw the company underperform expectations "on all metrics across the board." Oppenheimer also downgraded Verint to Perform from Outperform as growth continues to deteriorate, and reduced guidance is heavily loaded to Q4.
Barclays downgraded Dell Technologies (DELL) to Underweight from Equal Weight with an unchanged price target of $53. The firm cites valuation for the downgrade following the stock's recent run-up.
Raymond James downgraded Dave & Buster's (PLAY) to Outperform from Strong Buy with a price target of $55, down from $60. The firm also removed the stock from its Current Favorites list as the company's Q2 results reflected weaker than expected comparable sales at Dave & Buster's branded stores.
Top Initiations:
Stifel initiated coverage of Home Depot (HD) with a Hold rating and $350 price target. The firm is cautious on the amplitude of the category recovery with interest rates remaining elevated.
Stifel initiated coverage of Lowe's (LOW) with a Buy rating and $270 price target. The firm, which has "a positive bias to the home improvement category," says Home Depot and Lowe's have achieved leadership in U.S. home improvement retail and argues that both are "likely to build upon their leading positions."
Canaccord initiated coverage of Kenvue (KVUE) with a Buy rating and $28 price target. With the Johnson & Johnson (JNJ) ownership overhang resolved, Kenvue is well positioned to focus on growing its core brands "through its strong innovation and marketing engine," says the firm.
BofA initiated coverage of Akamai (AKAM) with a Buy rating and $145 price target. BofA sees potential upside from multiple expansion as well as revenue growth acceleration and margin expansion.
BofA initiated coverage of Cloudflare (NET) with an Underperform rating and $52 price target. The firm believes Cloudflare's challenges to address the enterprise market could drive lower estimates than the Street anticipates.
