Etsy upgraded, RTX downgraded to 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:
Wolfe Research upgraded Etsy (ETSY) to Outperform from Peer Perform with a $100 price target. The firm sees "many paths" for Etsy shares to outperform over the next 12-18 months.
BMO Capital upgraded First Solar (FSLR) to Outperform from Market Perform with an unchanged price target of $237. The stock stock has declined by an "unwarranted degree" following the company's recent analyst day, the firm argues.
Redburn upgraded Norwegian Cruise (NCLH) Line to Buy from Neutral with a $25 price target. The fundamental investment case for the cruise lines of strong secular growth and margin opportunity "is clear," the firm says. Redburn also upgraded Carnival (CCL) to Buy from Neutral with a $23 price target.
Summit Insights upgraded Semtech (SMTC) to Buy from Hold. The firm believes the inventory correction in Semtech's signal integrity and protection is now behind the company.Susquehanna also upgraded Semtech to Positive from Neutral with an unchanged price target of $30 following the fiscal Q2 report.
Jefferies upgraded Prudential (PRU) to Hold from Underperform with a price target of $93, up from $70. The firm has turned more constructive on U.S. life insurance. Jefferies alsoupgraded MetLife (MET) to Buy from Hold with a price target of $72, up from $58.
Top 5 Downgrades:
BofA downgraded RTX (RTX) to Underperform from Neutral with a price target of $75, down from $95, following recent geared turbofan, or GTF, developments. While some may think RTX is now a "value" investment following a nearly 10% decline since the company said it will recognize a Q3 charge of $3B due to the Pratt & Whitney issues, the firm advises caution as it sees "significant near-term risks" that account for its Sell-equivalent rating.
BofA downgraded J.M. Smucker (SJM) to Neutral from Buy with a price target of $145, down from $170, following the proposed acquisition of Hostess Brands (TWNK).
BofA downgraded Digital Turbine (APPS) to Neutral from Buy with a price target of $8, down from $12. A "flurry of disappointing results and missed guidance" since February have prompted more caution from investors, says the firm.
Benchmark downgraded Semtech to Hold from Buy and removed the firm's price target, citing the "unclear acquisition synergies" of its recently closed purchase of Sierra Wireless after the company posted its fiscal Q2, July quarter results.
TD Cowen downgraded Frontier Group (ULCC) to Market Perform from Outperform with a price target of $8, down from $12, following management's latest guidance update.
Top 5 Initiations:
Argus initiated coverage of Verisk Analytics (VRSK) with a Buy rating and $288 price target. The firm contends that the company's accelerating revenue and strong business model will appeal to investors even amid a difficult property/casualty insurance industry backdrop.
GoodRx (GDRX) was assumed by a different analyst at JPMorgan with a Neutral rating and price target of $7, up from $6, as the firm wants to see traction around the expected inflection to the upside for GoodRx.
TD Cowen initiated coverage of BJ's Wholesale (BJ) with an Outperform rating and $80 price target. The firm likes the company's wholistic approach to club membership engagement and models high single-digit long-term earnings growth on low single-digit comps.
DA Davidson initiated coverage of Herbalife (HLF) with a Neutral rating and $13.50 price target. While Herbalife's valuation is low like all the direct sellers, its active sales leaders were down sequentially in Q1 and Q2 and three of its five regions posted a worsening of constant currency sales performance in Q2, says the firm.
Berenberg initiated coverage of Rapt Therapeutics (RAPT) with a Buy rating and $34 price target. The firm believes RPT193 does not require strong efficacy to become a blockbuster drug and views the company as "suitable long-term investment."
