DraftKings upgraded, Coinbase 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:
BofA upgraded DraftKings (DKNG) to Buy from Neutral with a price target of $35, up from $25. Accelerating product and revenue momentum are "on the cusp" of driving an inflection in margins and profitability, the analyst tells investors. [read more]
Loop Capital upgraded TJX (TJX) to Buy from Hold with a price target of $95, up from $75. Recent store checks have given the analyst confidence to increase sales and earnings estimates and make up product in ladies apparel at TJX is more on trend than in recent years, the analyst tells investors in a research note. [read more]
Morgan Stanley upgraded Jefferies Financial Group (JEF) to Equal Weight from Underweight with a price target of $36, up from $27. The analyst also upgraded the midcap advisors sector to Attractive from In-Line. Lower volatility and recovering markets point to a merger and acquisition inflection in 2024, the tells investors in a research note. [read more]
BofA upgraded Stellantis (STLA) to Buy from Neutral with a price target of EUR 20, up from EUR 19. Earnings normalization seems likely with supply chains easing, says the analyst, who notes that the firm's earnings forecasts are above consensus for FY23 by about 11%. [read more]
Odeon Capital upgraded Morgan Stanley (MS) to Buy from Hold with a $94 price target. Since the beginning of June, the Federal Reserve has not impacted the financial system as much as the firm had thought it would, the equity markets have risen by 27% from their lows and the investment banking business has recovered sharply, the analyst tells investors. [read more]
Top 5 Downgrades:
Atlantic Equities downgraded Coinbase (COIN) to Neutral from Overweight with a price target of $80, up from $70. The stock has rallied 60% off recent lows, and the risk/reward looks less attractive at this level given continued regulatory challenges ahead and the "surprisingly weak volume backdrop," the analyst tells investors in a research note. [read more]
Raymond James double downgraded AlTi Global (ALTI) to Market Perform from Strong Buy without a price target. The analyst continues to like the company's "unique" business model but downgrades the shares on valuation with the stock at its prior price target of $8. [read more]
DA Davidson downgraded Redfin (RDFN) to Underperform from Neutral with an unchanged price target of $10. Over the past few quarters, Redfin has made progress towards its goal of achieving sustainable profitability, but this early progress is now fully reflected in its current valuation, says the firm. [read more]
Stifel downgraded Activision Blizzard (ATVI) to Hold from Buy with a price target of $95, up from $88. Yesterday's "flurry of regulatory developments" further support a favorable outcome for Microsoft (MSFT) in its bid to complete the acquisition of Activision Blizzard, says the analyst. [read more] Activision Blizzard was also downgraded to Hold from Buy at Benchmark [read more] and to Market Perform from Outperform at MoffettNathanson. [read more]
JPMorgan downgraded Silk Road Medical (SILK) to Neutral from Overweight with a price target of $28, down from $50. The Centers for Medicare and Medicaid Services last night released a proposed decision memo, which revised Medicare coverage for percutaneous transluminal angioplasty of the cartotid arteries concurrent with stenting, which "places a difficult overhang" on Silk Road shares, one that will take time to either confirm or disprove, the analyst says. [read more] Shares were also downgraded at BofA to Underperform from Buy. [read more]
Top 5 Initiations:
BofA resumed coverage of Baker Hughes (BKR) with a Buy rating and $38 price target. The firm cites Baker Hughes' "unique exposure" to both cyclical oilfield services and secular energy transition upside, improving supply chains, ongoing cost rationalization efforts, and improving free cash flow generation. [read more]
Goldman Sachs initiated coverage of Q2 Holdings (QTWO) with a Buy rating and $38 price target, which implies 19% upside. Q2's user-facing technology should benefit from a resilient spending environment, the analyst tells investors in a research note. [read more]
Stephens initiated coverage of DoubleVerify (DV) with an Overweight rating and $47 price target. DoubleVerify has been a "prime beneficiary" as advertisers and agencies seek to optimize digital ad spend among various channels, the analyst tells investors. [read more]
UBS initiated coverage of Suncor (SU) with a Buy rating and C$48 price target. The company is the most profitable refiner in North America, and its upstream cash cost and safety should improve, the analyst tells investors in a research note. [read more]
Goldman Sachs reinstated coverage of Ovintiv (OVV) with a Neutral rating and $38 price target. The Neutral rating is a reflection of downside risks to near-term estimates, but these concerns are already reflected in the valuation of the shares, the analyst says. [read more]
