GE upgraded, Vail Resorts 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:
JPMorgan upgraded General Electric (GE) to Overweight from Neutral with a price target of $180, up from $166. GE is the premier large cap name in commercial aerospace with regard to the business, where that business is in the cycle, the balance sheet, and the management team, the analyst says.
RBC Capital upgraded Carvana (CVNA) to Sector Perform from Underperform with a price target of $90, up from $45. The stock's recent run has the potential to trade even higher "before reasonable valuations may matter again," making Carvana's risk/reward on an Underperform rating "infeasible for the foreseeable future," the analyst tells investors in a research note.
Goldman Sachs upgraded Coinbase (COIN) to Neutral from Sell with a $282 price target. Crypto prices have surged to all time highs and Coinbase daily volumes have reached levels not seen since 2021, driving a 48% increase to the firm's revenue estimates since early February, says the analyst.
JPMorgan upgraded Teva (TEVA) to Neutral from Underweight with a $14 price target. The firm says that while it has been concerned the investments required to develop Teva's assets would pressure margins, the company has done an effective job of partnering programs to address this dynamic.
Summit Insights upgraded Marvell (MRVL) to Buy from Hold after its Q4 results. The company's AI-related growth was not enough to offset weakness in its other end-markets, though the firm believes that its Carrier, Enterprise Networking, and Consumer sales will bottom in the April quarter.
Top 5 Downgrades:
BofA downgraded Vail Resorts (MTN) to Neutral from Buy with a price target of $250, down from $285 as the firm sees the setup as "more challenging from here."
Oppenheimer downgraded Figs (FIGS) to Perform from Outperform without a price target. The analyst remains constructive on the longer term prospects for Figs and the shares, but is increasingly concerned that internal and external challenges, which have impacted trends at the company lately, are likely to persist, longer than initially anticipated.
B. Riley downgraded Runway Growth Finance (RWAY) to Neutral from Buy with a price target of $13.50, down from $14.50, following the Q4 report. With Runway Growth now trading at net asset value given the 7% year-to-date price appreciation and 4% NAV per share compression in Q4, there is limited upside, the analyst tells investors in a research note.
Wolfe Research downgraded Martin Marietta (MLM) to Peer Perform from Outperform without a price target. After big 2023 margin expansion, Wolfe sees more muted growth and risks to infrastructure.
BofA double downgraded Victoria's Secret (VSCO) to Underperform from Buy with a price target of $15, down from $34, based on the steep slowdown in sales trends and continued secular slowdown in the core lingerie market that led the company to issue weaker-than-expected FY24 guidance.
Top 5 Initiations:
BofA initiated coverage of Skechers (SKX) with a Neutral rating and $67 price target. The firm thinks a low-double digit sales compound annual growth rate is "sustainable" and sees a path for the company's 11%-13% operating margin target to be reached over the medium term.
Wolfe Research initiated coverage of Knife River (KNF) with a Peer Perform rating and no price target. The analyst has a positive view on the company's infrastructure demand, margin growth, and potential to be a takeout candidate, but the stock's valuation looks rich and infrastructure spending can disappoint, the analyst tells investors in a research note.
Jefferies initiated coverage of ACI Worldwide (ACIW) with a Buy rating and $38 price target. ACI has an enviable market position as a provider of mission-critical payments software to the largest banks globally, the firm says.
Morgan Stanley initiated coverage of enGene (ENGN) with an Overweight rating and $40 price target. The analyst says the company's Phase 1 data for EG-70 in bladder cancer have been encouraging, suggesting it could provide comparable efficacy as other candidates in development.
BTIG initiated coverage of Ideaya Biosciences (IDYA) with a Buy rating and $55 price target. Ideaya is a clinical-stage biotech company "with a robust pipeline of first-in-class molecules in attractive oncology markets and a strong balance sheet that offers multiple value-creation opportunities for investors," the analyst tells investors in a research note.
