Dollar Tree upgraded, Microsoft initiated: 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:
Goldman Sachs upgraded Dollar Tree (DLTR) to Buy from Neutral with a price target of $137, down from $150. The firm sees strong earnings growth potential supported by continued market share gains from improving traffic trends with "sticky" new customers, an improving discretionary cash flow outlook for lower- and middle-income consumers in 2024, and better shopability after recent investments.
Exane BNP Paribas upgraded Mondelez (MDLZ) to Outperform from Neutral with a $75 price target. The firm says the company's lower exposure to the U.S. market is likely a positive.
Citi upgraded Progressive (PGR) to Neutral from Sell with a price target of $158, up from $120. The firm believes the case for an inflection in personal auto margins has strengthened.
Mizuho last night upgraded Lennox (LII) to Buy from Neutral with a price target of $460, up from $340. The firm says the company's earnings potential "too pronounced to ignore."
Wolfe Research upgraded FIS (FIS) to Outperform from Peer Perform with a $65 price target. The upgrade is driven by the stock's relative valuation and expected sentiment upon the Worldpay sale and underlying RemainCo fundamentals, the firm says.
Top 5 Downgrades:
Citi downgraded SunPower (SPWR) to Sell from Neutral with a price target of $4.50, down from $10. The firm expects residential solar to have "another tough quarter" and sees risk to the guidance from SunPower. Morgan Stanley also downgraded SunPower to Underweight from Equal Weight with a price target of $5, down from $8.
Goldman Sachs downgraded BJ's Wholesale (BJ) to Neutral from Buy with a price target of $73, down from $75. The firm sees limited earnings upside to consensus estimates for fiscal 2024, and sees a full valuation at current share levels.
Barclays downgraded NOV Inc. (NOV) to Underweight from Equal Weight with an unchanged price target of $20. The firm says NOV is at a "structural disadvantage" this cycle as service companies restrain capex and drilling contractors consolidate, as opposed to the build out of equipment and assets in the prior cycle.
Cantor Fitzgerald downgraded Crispr Therapeutics (CRSP) to Neutral from Overweight. Crispr owns 40% of exa-cel, an ex vivo autologous cell therapy being developed by partner Vertex (VRTX), and Cantor expects exa-cel to become the leading therapy for sickle cell disorder, though it could take time to break down the many potential barriers to adoption.
Baird downgraded H.B. Fuller (FUL) to Neutral from Outperform with an unchanged price target of $80. The firm cites year-to-date outperformance against a backdrop of "rapid volatility that has severely weighed on other portions of our coverage," stating that its margin expansion thesis for H.B. Fuller "has unfolded."
Top 5 Initiations:
Loop Capital initiated coverage of Microsoft (MSFT) with a Buy rating and $425 price target. The company's growth is set to accelerate driven by its two most strategic businesses, Azure and generative artificial intelligence products, the firm tells investors in a research note.
Cantor Fitzgerald initiated coverage of Bluebird Bio (BLUE) with a Neutral rating and no price target. Cantor expects Bluebird's lovo-cel to be approved on or around its PDUFA date and believes its profile is more similar than different from Vertex and Crispr's exa-cel, but feels cell therapies face multiple barriers to penetrating the sickle cell disorder market.
Deutsche Bank initiated coverage of ViaSat (VSAT) with a Hold rating and $22 price target. The firm believes positives are overshadowed by ViaSat's recent satellite anomalies and high leverage, "which is further exacerbated by big capex spending plans."
Craig-Hallum initiated coverage of Potbelly (PBPB) with a Buy rating and $15 price target. Potbelly has significant momentum and vastly improved operations driven by an experienced management team positioned to succeed, the firm says.
Goldman Sachs initiated coverage of TripAdvisor (TRIP) with a Buy rating and $22 price target. The firm sees upside to Street estimates on the back of faster revenue growth at Viator/Experiences and operating efficiencies leading to better profitability.
