e.l.f. Beauty upgraded, AutoZone 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:
Jefferies upgraded e.l.f. Beauty (ELF) to Buy from Hold with a price target of $115, up from $110. The analyst notes that the recent pullback in EBITDA multiple to 23-times from 37-times has created a buying opportunity as underlying demand remains robust while the benefits from M&A, international expansion, and share gains should more than offset tough comps in FY25.
Piper Sandler upgraded Shoals Technologies (SHLS) to Overweight from Neutral with an unchanged price target of $28. The analyst cites the recent pullback in the shares for the upgrade.
BofA upgraded Xcel Energy (XEL) to Buy from Neutral with a price target of $66, up from $58. While noting that the upgrade comes "relatively soon after" the firm had recently downgraded the shares, the firm feels confident that the recent Colorado Resource Plan proposal "lays the foundation for an upward inflection in rate base growth to the end of the decade," the analyst tells investors.
Truist upgraded Frontdoor (FTDR) to Buy from Hold with a price target of $42, up from $40. The Truist card data suggests the company should generate $525M-plus in Q3 revenue, solidly ahead of the Street at $510M and guidance of $500M-$515M.
JPMorgan upgraded Eaton (ETN) to Overweight from Neutral with a $230 price target.
Top 5 Downgrades:
Oppenheimer downgraded AutoZone (AZO) to Perform from Outperform with a price target of $2,600, down from $2,850. The analyst assumes a "less upbeat stance" on auto parts retail as the focus shifts to 2024.
DA Davidson downgraded LCI Industries (LCII) to Underperform from Neutral with a price target of $91, down from $113. The analyst is citing the firm's follow-up with dealers to discuss Open House and the 2024 RV Industry outlook, noting that the feedback received was overwhelmingly negative, including weak Open House ordering trends, uncertain production cuts in Q4-Q1, and a desire for further price reductions.
BTIG downgraded Venus Concept (VERO) to Neutral from Buy without a price target. The company reported preliminary Q3 revenue below expectations, cut full-year revenue guidance due to the accelerated distributor transition, and announced a debt restructuring, the analyst tells investors in a research note.
Truist downgraded PTC Therapeutics (PTCT) to Hold from Buy with a price target of $25, down from $45. The analyst is citing the company's "financing/development hurdles" overshadowing the key strengths in its portfolio.
JPMorgan downgraded Carrier Global (CARR) to Underweight from Neutral with a $53 price target.
Top 5 Initiations:
Bernstein initiated coverage of Disney (DIS) with an Outperform rating and $103 price target. The decline of linear and transition to DTC are "well-established narratives" and future growth and profitability will be about outpacing linear decline with DTC growth and having scale for profitability, the analyst tells investors. Seaport Research also initiated coverage of Disney with a Buy rating and $93 price target.
Seaport Research initiated coverage of Roku (ROKU) with a Neutral rating and no price target. The firm is initiating coverage of the "core" Media industry names, or those with owned IP, studios and/or streaming services, arguing that these "content" stocks have "possibly seen the worst of investors' fears."
Oppenheimer initiated coverage of ImmunoGen (IMGN) with a Perform rating and $16 price target. While stating that ImmunoGen "stands among the pioneers of antibody-drug conjugates," or ADCs, for oncology and acknowledging that the launch of lead asset Elahere "surpassed expectations" since the drug received accelerated approval in Q4 of 2022, the firm anticipates shares to continue trading near fair value.
TD Cowen initiated coverage of Block (SQ) with an Outperform rating and $59 price target. Block, the parent of Square and Cash App, "boasts a fundamentally differentiated ecosystem in Fintech," contends the analyst, who sees the company's ability to grow and integrate its solutions placing it "among the most likely to challenge industry norms."
Goldman Sachs reinstated coverage of Enterprise Products (EPD) with a Neutral rating and $28 price target. The analyst reinstated coverage of 18 North American midstream stocks, taking a "mostly selective view" on North America midstream energy.
