Enphase Energy upgraded, Brighthouse 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:
Seaport Research upgraded Enphase Energy (ENPH) to Buy from Neutral with an $185 price target. The firm thinks as Enphase will benefit from ongoing share repurchases, continued robust growth in Europe's residential solar market and "a clear emergent recovery in U.S. residential solar installations" by mid- to late-Q2 of 2024.
Deutsche Bank upgraded Five9 (FIVN) to Buy from Hold with a price target of $80, up from $75, which represents 20% potential upside. The firm believes the company's momentum from recent bookings strength amid a favorable backdrop for cloud contact center spend is likely to reaccelerate Five9's revenue growth.
BofA upgraded Nutanix (NTNX) to Buy from Neutral with a price target of $50, up from $39, as the firm sees fundamentals improving over the next few years and sees renewals driving a higher amount of ACV billings growth following FY24.
Truist upgraded International Paper (IP) to Buy from Hold with a price target of $43, up from $30. The firm is increasing its estimates and targets for all containerboard producers as it believes that the containerboard market is reaching a positive inflection point and poised for recovery due to improving demand from the end of destocking and increasingly balanced inventories.
Baird upgraded HealthEquity (HQY) to Outperform from Neutral with a price target of $87, up from $79. The firm cites several recent positive developments and updates for the upgrade, including recent earnings, meetings with management, acquisition announcements, the recent Federal Reserve commentary and the stock's "historically attractive valuation."
Top 5 Downgrades:
William Blair downgraded Splunk (SPLK) to Market Perform from Outperform without a price target after the company entered into an agreement to be acquired by Cisco (CSCO) for $157 per share in an all-cash transaction.
Goldman Sachs downgraded Brighthouse Financial (BHF) to Sell from Neutral with a price target of $43, down from $47. The company's disclosure of multi-year cash flow suggests a slower ramp-up of free cash flow than anticipated, the firm says.
Citi downgraded Frontier Group (ULCC) to Neutral from Buy with a price target of $5.50, down from $16. The firm expected Frontier's seat mile cost profile to have provided some operational support, but Frontier's recent comments about greater than expected seasonal weakness mesh with domestic booking curve data for December travel inflecting down year-over-year.
Argus downgraded Silk Road Medical (SILK) to Hold from Buy. Silk Road is expected to face pressure from a recent adverse coverage decision from the Centers for Medicare and Medicaid, the firm says.
Cantor Fitzgerald downgraded Seelos Therapeutics (SEEL) to Neutral from Overweight without a price target after the company announced top-line data from the Phase 2 trial of SLS-002 in acute suicidal ideation and behavior in major depressive disorder, which were "disappointing."
Top 5 Initiations:
B. Riley initiated coverage of Yeti Holdings (YETI) with a Neutral rating and $50 price target. The firm's "enthusiasm is balanced," considering a pressured consumer, rising competitive threats, and a waning growth opportunity from brand discovery, with potential product category expansion carrying greater risk.
BTIG initiated coverage of Overstock.com (OSTK) with a Neutral rating and no price target. The company is at a "pivotal moment in its long history" as it has bet its future on taking on the Bed Bath & Beyond brand after buying the intellectual property out of bankruptcy in June, the firm says.
Morgan Stanley resumed coverage of Public Storage (PSA) with an Equal Weight rating and $250 price target, arguing that slowing demand offsets the company's "strong balance sheet."
UBS initiated coverage of Dutch Bros (BROS) with a Neutral rating and $28 price target. UBS expects Dutch Bros can generate a growth algorithm of 20%+ revenue growth, comprised of low single digit same-store sales and mid-teens percentage unit expansion, with EBITDA growth of more than 30%.
Maxim initiated coverage of Anebulo Pharmaceuticals (ANEB), which is developing ANEB-001 as an acute cannabis intoxication, or ACI, reversal agent, with a Buy rating and $6 price target. While "rarely fatal," ACI represents "a significant cause of emergency department visits," says the firm, which sees a significant unmet need for ACI with a growing opportunity driven by favorable industry trends.
