DraftKings upgraded, Snap initiated at Sell: 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:
JPMorgan upgraded DraftKings (DKNG) to Overweight from Neutral with a price target of $37, up from $26. The firm recommends taking advantage of the 13% pullback in shares since late July.
Stifel upgraded Wingstop (WING) to Buy from Hold with a price target of $200, up from $180. The firm believes company is poised to "successfully lap" difficult comp comparisons in the the second half of 2023 as menu innovation and delivery channel growth, augmented by rapid expansion in the national ad fund, continue to build "top-of-mind awareness and drive incremental usage."
Oppenheimer upgraded Edwards Lifesciences (EW) to Outperform from Perform with a $90 price target. The firm views the stock's risk/reward profile as attractive at these levels.
UBS upgraded SiteOne Landscape (SITE) to Buy from Neutral with a price target of $200, up from $145. The company's earnings have bottomed, with EBITDA growth to inflect positive in the second half of 2023 and accelerate to up low single digits in 2024 and 2025, the firm argues.
Gordon Haskett upgraded Opendoor Technologies (OPEN) to Hold from Underperform with a price target of $2.25, down from $2.50. The firm says the shares now better reflect the housing market "woes' after falling 45% since its downgrade to Underperform on July 19. Gordon Haskett also upgraded Redfin (RDFN) to Hold from Underperform with a price target of $7, down from $8.
Top 5 Downgrades:
Jefferies downgraded Carlisle (CSL) to Hold from Buy with a price target of $290, down from $325. While the firm likes the long-term growth prospects, it sees risks near-term earnings from a more challenging commercial construction environment.
Jefferies downgraded Nordson (NDSN) to Hold from Buy with a price target of $240, down from $260. The firm, which sees modest downside to 2024 earnings with continued electronic headwinds and slower growth in medical, expects customers to remain cautious on investing in equipment in the near-term and would prefer to wait for a better entry point in the stock.
Wells Fargo downgraded Olin (OLN) to Equal Weight from Overweight with a price target of $50, down from $65. The firm believes the company lacks a catalyst until a new CEO is found.
Odeon Capital downgraded Comerica (CMA) to Hold from Buy with a $46 price target, contending that Comerica is "on the wrong side of the cycle." Non-interest-bearing deposits are leaving the bank, margins are under pressure and new capital rules under discussion may force the bank to raise equity, if put into effect, the firm adds.
BMO Capital downgraded W.P. Carey (WPC) to Market Perform from Outperform with a price target of $60, down from $75. The firm is "perplexed" by the timing and execution of W.P. Carey's announced spinoff of the majority of its office portfolio into a new REIT, NLOP, which the firm believes will likely trade at a "heavily discounted value."
Top 5 Initiations:
HSBC initiated coverage of Snap (SNAP) with a Reduce rating and $7.50 price target. Snap has been struggling with an adverse advertising industry climate and a social media landscape that is moving in the direction of the creator driven short-form media content popularized by TikTok, the firm notes.
HSBC initiated coverage of Pinterest (PINS) with a Buy rating and $32.10 price target. The firm believes the company has the right management team in place.
Piper Sandler initiated coverage of Foot Locker (FL) with a Neutral rating and $19 price target. The firm acknowledges "compelling changes" within the the company's portfolio and management team, but awaits signs of execution amidst a challenging macro environment.
HSBC initiated coverage of Bumble (BMBL) with a Buy rating and $20.30 price target. The firm believes the namesake app will continue to outperform as it remains relatively underpenetrated and retains a lead in popularity amongst women, and expects "sizable" operational leverage on growing scale for Bumble.
HSBC initiated coverage of Match Group (MTCH) with a Hold rating and $47.10 price target. The firm has yet to see evidence that Tinder's recent revamp is driving lasting gains beyond those of the one-off price optimization.
