Foot Locker downgraded, Amazon initiated: 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:
Piper Sandler upgraded American Express (AXP) to Neutral from Underweight with a price target of $151, up from $150. American Express shares are down over 20% since last earnings and now trade at a valuation level "rarely seen" for AmEx, the firm tells investors.
Evercore ISI upgraded Alkermes (ALKS) to Outperform from In Line after the company announced preliminary results, including initial proof-of-concept data, from a phase 1 study evaluating ALKS 2680, the company's novel, investigational orexin 2 receptor agonist in development for the treatment of narcolepsy.
JPMorgan upgraded PVH Corp. (PVH) to Overweight from Neutral with a price target of $119, down from $122. The firm sees a favorable risk/reward profile with a "multi-year brand 'unlock' underway."
Citi upgraded Editas Medicine (EDIT) to Buy from Neutral with an $11 price target. The firm also opened a "30-day positive catalyst watch" on the shares. Citi sees potential for near-term share upside in two key catalysts through the end of the year, namely potential readthrough from the upcoming exa-cel FDA panel vote on October and Editas reporting updated EDIT-301 data by the end of 2023.
Baird upgraded Medpace (MEDP) to Outperform from Neutral with a price target of $289, up from $270. Baird views the shares as attractively valued.
Top 5 Downgrades:
JPMorgan downgraded Foot Locker (FL) to Underweight from Neutral with a price target of $17, down from $20. The company faces headwinds from "choppy" mall-retail traffic and key brand allocation shifts like Nike (NKE), the firm tells investors in a research note.
Piper Sandler downgraded Monster Beverage (MNST) to Neutral from Overweight with a price target of $50, down from $63. The firm says Monster's near-term and long-term growth momentum "look likely to lag historical levels."
JPMorgan downgraded Bath & Body Works (BBWI) to Underweight from Neutral with a price target of $27, down from $41. The firm says the combination of moderating same-store-sales relative to pre-pandemic comp growth, ongoing separation-related investments, and pressure as the model returns to a normalized cadence of promotions present potential earnings headwinds.
Daiwa downgraded Enphase Energy (ENPH) to Neutral from Outperform with a price target of $100, down from $145. The firm believes inventory destocking will continue into the first half of 2024.
Morgan Stanley downgraded FMC Corporation (FMC) to Equal Weight from Overweight with a price target of $70, down from $100. The severity of the company's sales and EBITDA rebase resets risk/reward balance and no longer provides suitable base case upside for an Overweight rating, the firm tells investors in a research note.
Top 5 Initiations:
Seaport Research initiated coverage of ten companies within the Internet sector, saying it is constructive on the long-term growth of the sector, though revenue growth is "generally mixed," with some companies still recovering from the pandemic and others facing tougher comps, the analyst tells investors. Among the group, Seaport starts Amazon (AMZN) with a Buy rating and $145 price target; Godaddy (GDDY) with a Buy and $85 target; Meta Platforms (META) with a Buy and $365 target; Pinterest (PINS) with a Buy and $33 target; Squarespace (SQSP) with a Buy and $35 target; Uber (UBER) with a Buy and $51 target; Wix.com (WIX) with a Buy and $103 target; Airbnb (ABNB) with a Neutral rating; Alphabet (GOOGL) with a Neutral and DoorDash (DASH) with a Neutral rating.
Wells Fargo initiated coverage of Public Storage (PSA) with an Overweight rating and $270 price target. The company has industry-leading scale, a conservative balance sheet, and expected growth outperformance versus industry averages through 2025, the firm argues.
Loop Capital initiated coverage of Trade Desk (TTD) with a Buy rating and $95 price target. The firm views Trade Desk as one of the best long-term growth opportunities available to technology and media investors today.
Wells Fargo initiated coverage of Extra Space Storage (EXR) with an Underweight rating and $115 price target. The firm sees elevated near-term risks from the LSI integration, and says recent declines in Street rates puts pressure on estimates for 2023 and 2024.
KeyBanc initiated coverage of Criteo (CRTO) with an Overweight rating and $40 price target. The firm believes Criteo's model transition and advertising technology sector volatility has masked the company's progress in retail media.
