Dell upgraded, Starbucks 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:
Daiwa upgraded Dell Technologies (DELL) to Outperform from Neutral with a price target of $80, up from $50. The firm states that the demand slowdown seen since the second half of 202 seems to be abating and a new up cycle is beginning.
Truist upgraded Royal Caribbean (RCL) to Buy from Hold with a price target of $137, up from $115. At its investor day last fall, the company targeted EPS of at least $10 in 2025 and since that time the company has had "two massive beat & raise earnings reports," says the firm, which now thinks "$12 of EPS in 2025" is the new "$10 of EPS in 2025".
Truist upgraded Carnival (CCL) to Hold from Sell with a price target of $17, up from $16. Europe is showing the greatest degree of strength for 2024 and Carnival has the greatest exposure to this market, says the firm, which adds that it still sees the greatest degree of new competition coming to Carnival from "industry disruptor" MSC Cruises.
Evercore ISI upgraded CVS Health (CVS) to Outperform from In Line with a price target of $83, up from $81. The firm believes the company's operational issues are improving, while the stock's current valuation is attractive.
Stifel upgraded Globus Medical (GMED) to Buy from Hold with a $61 price target. The market has a pessimistic view of Globus Medical and NuVasive (NUVA), with NewCo valuation well-below historical levels for both standalones, the firm notes.
Top 5 Downgrades:
TD Cowen downgraded Starbucks (SBUX) to Market Perform from Outperform with a price target of $107, down from $117. The firm says "worrisome" macro and competitive pressures will challenge Starbucks' China same-store-sales and the stock's multiple.
Evercore ISI downgraded Deere (DE) to In Line from Outperform with a price target of $424, down from $456. The firm says feedback from the firm's component contacts over the weekend highlight revenue risk across agriculture is "already here" for 2023.
JPMorgan downgraded Planet Fitness (PLNT) to Neutral from Overweight with a price target of $52, down from $70. The firm says the removal of Chris Rondeau, the "heart and soul of the company," was clearly a surprise.
Piper Sandler downgraded Kinnate Biopharma (KNTE) to Neutral from Overweight with a price target of $4, down from $20. The firm notes that the company announced a pipeline restructuring, strategic reprioritization and 70% workforce reduction, and says it can no longer recommend the shares given the uncertainty.
Daiwa downgraded Daqo New Energy (DQ) to Hold from Outperform with a price target of $32, down from $45. The firm says the "plunge" in polysilicon prices in Q3 is driving a downward correction in Daqo's average selling price.
Top 5 Initiations:
Redburn initiated coverage of Arm (ARM) with a Neutral rating and $50 price target. The firm says that to recommend Arm at current valuations, it needs higher conviction in a multi-year earnings acceleration from a "weak" fiscal 2023 base.
Citi initiated coverage of GE HealthCare (GEHC) with a Buy rating and $82 price target. The firm says the company's "products are essential, and pervasive, throughout the healthcare continuum."
Argus initiated coverage of MSCI (MSCI) with a Buy rating and $580 price target. The firm is positive on the company's "impressive" track record, with double-digit annual growth in both sales and EPS and believes that MSCI should benefit over time from global GDP growth, the increased popularity of passive investment strategies, and the development of ESG and climate-based investing in developed and emerging economies.
B. Riley initiated coverage of Bitcoin Depot (BTM) with a Buy rating and $6 price target. The firm believes the company is a way to express an investment view for the broad consumer adoption of bitcoin without being highly correlated to price swings of the cryptocurrency market.
Barclays initiated coverage of Supermicro (SMCI) with an Overweight rating and $327 price target. Against the backdrop of artificial intelligence investment trends, Supermicro is well positioned to capture the rising AI server opportunity with more share gains ahead driven by its "superior design capability and strong AI partnerships," the firm says.
