DoorDash, Lyft 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 5 Upgrades:
RBC Capital upgraded DoorDash (DASH) to Outperform from Sector Perform with a price target of $175, up from $130. The firm believes the company's new verticals and international expansion "may be on the doorstep of stabilizing profitability."
RBC Capital upgraded Lyft (LYFT) to Outperform from Sector Perform with a price target of $23, up from $17. The firm says its driver supply analysis continues pointing to U.S. ride hailing "being more of a stable duopoly than not."
Argus upgraded NetApp (NTAP) to Buy from Hold with a $130 price target. The company's Q3 results topped expectations as revenue rose year-over-year for the first time in five quarters, while its gross and operating margins saw all-time highs, the firm tells investors in a research note.
Seaport Research upgraded FuboTV (FUBO) to Buy from Neutral with a $2.50 price target. While the firm understands that some investors will be seeking more topline growth in order to "re-invigorate enthusiasm," Seaport thinks there is limited downside to the company's antitrust lawsuit against the Sports Streaming JV announced last month, sees ad revenue gaining momentum and "seemingly keeping pace with the digitally native/connected TV video ad sales peers," and sees margins rapidly improving.
Baird upgraded Squarespace (SQSP) to Outperform from Neutral with a price target of $39, up from $30. The firm believes the company is well positioned to see its fundamental merits better appreciated in estimates and valuation over the near-term, aided by continued strength in execution, the integration of Google Domains, and the investor day on May 15.
Top 5 Downgrades:
JPMorgan downgraded CommScope (COMM) to Underweight from Neutral without a price target. The company's "tough start" to 2024 and limited catalysts sets it up for a significant decline in revenue and EBITDA year-over-year this year, including potentially marking a record for the lowest EBITDA since acquisition of Arris, the firm tells investors in a research note.
Barclays downgraded G-III Apparel (GIII) to Underweight from Equal Weight with a price target of $23, down from $30. The firm cites lost revenue from customer store closures, lost licenses which will occur over a five-year period, and muted interest in owned brands for the downgrade.
UBS downgraded QuidelOrtho (QDEL) to Sell from Neutral with a price target of $42, down from $70. The firm believes there is downside to guidance and consensus estimates, visibility is low, and there is a lack of near-term positive catalysts.
Stifel downgraded International Game (IGT) to Hold from Buy with a price target of $30, down from $31. The firm says that while its long-term thesis remains intact, near-term share upside appears constrained by tax mechanics and Italy Lotto uncertainty
Susquehanna downgraded Rush Street Interactive (RSI) to Neutral from Positive with a price target of $6, up from $5. The firm says a lack of internet casino legalization and higher Illinois-based online sports betting taxes disproportionately affect Rush Street's prospects and are likely to negatively affect its 2024 consensus projections.
Top 5 Initiations:
Goldman Sachs initiated coverage of Supermicro (SMCI) with a Neutral rating and $941 price target. The firm says Supermicro is an "AI winner," which helps to justify the stocks nearly 1,000% move since the beginning of 2023. However, Goldman now views the stock as fairly valued.
Evercore ISI initiated coverage of Toast (TOST) with an Outperform rating and $32 price target. The firm views Toast as one of the leading small-to-midsize business restaurant management and payments platform providers and believes Toast's exclusive focus on addressing the pain points of managing a restaurant positions it well to compete against both large legacy and newer smaller platforms.
Morgan Stanley initiated coverage of Kyverna Therapeutics (KYTX) with an Overweight rating and $40 price target. Cell therapy for autoimmune disease is an emerging and increasingly competitive space, which represents a potentially large market opportunity, the firm says, adding it believes Kyverna is well positioned given promising early data and potential for differentiation. JPMorgan, Leerink, and Wells Fargo also started coverage of Kyverna Therapeutics with Buy-equivalent ratings.
Craig-Hallum initiated coverage of BrightView (BV) with a Buy rating and $15 price target. Following a 25-plus year career at United Rentals (URI), most recently serving as COO, Dale Asplund joined BrightView in late 2023 as CEO, which the firm sees as an important catalyst for the stock, and the start of a significant increase in shareholder value creation from here.
William Blair initiated coverage of Rekor Systems (REKR) with an Outperform rating. The firm says the lack of investment in modern infrastructure, need for safety improvements, and sustainability initiatives will all provide multiyear demand tailwinds for Rekor.
