GM upgraded, Lululemon 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:
Mizuho upgraded General Motors (GM) to Buy from Neutral with a price target of $42, up from $38. The firm says sentiment on GM "is at a bottom" given the weak consumer, 25% UAW wage hikes, Cruise and electric vehicle challenges, which is reflected in the stock's 10-year valuation lows.
JPMorgan upgraded Carvana (CVNA) to Neutral from Underweight with a price target of $40, up from $25. The firm says its meetings with operations executives provide greater comfort that Carvana's recent improvements in unit economics, specifically in the core retail operations, "are likely to be sticky."
Wells Fargo upgraded CyberArk (CYBR) to Overweight from Equal Weight with a price target of $250, up from $166. The firm believes the company is capitalizing on recent breach activity and the changing competitive dynamics.
Barclays upgraded 3M (MMM) to Equal Weight from Underweight with a price target of $107, up from $98. The firm says 3M screens well on its updated stock selection framework.
Morgan Stanley upgraded Insulet (PODD) to Overweight from Equal Weight with a price target of $234, up from $185. With the stock down about 35% on a mixture of GLP-1 concerns and higher for longer treasury rates, Insulet has had a very challenging 2023, but the shares have been "overly punished" on GLP-1 worries and the company has "a number of exciting growth vectors as we move into 2024," the firm tells investors.
Top 5 Downgrades:
Wells Fargo downgraded Lululemon (LULU) to Equal Weight from Overweight with an unchanged price target of $445, citing valuation for the downgrade. The firm recommends taking "chips off the table" following the stock's solid run year-to-date.
Raymond James double downgraded Alaska Air (ALK) to Market Perform from Strong Buy without a price target Perform following the announcement of the planned acquisition of Hawaiian (HA). Deutsche Bank also downgraded Alaska Air to Hold from Buy with a price target of $44, down from $55.
UBS on Friday downgraded Bilibili (BILI) to Neutral from Buy with a price target of $13.20, down from $22. The firm expects "near-term pain" as Bilibili revamps its game strategy - cutting back investment in R&D and focusing more on game distribution.
Evercore ISI downgraded Fisker (FSR) to In Line from Outperform with a price target of $2, down from $6. The company's production guidance was again reduced to 10,000 from the reduced 13,000-17,000 outlook only three weeks ago, the firm tells investors in a research note.
Morgan Stanley downgraded Citizens Financial (CFG) to Equal Weight from Overweight with an unchanged price target of $31. The firm says weaker net interest margin and rising net charge offs are a headwind to earnings for 2024.
Top 5 Initiations:
HSBC initiated coverage of Ford (F) with a Hold rating and General Motors (GM) with a Buy rating, with price targets of $11.30 and $41.30, respectively. The firm says the "age of disruption is underway" in the auto sector, and believes stock valuations do not reflect cash flow outlook for its Buy rated names.
HSBC initiated coverage of QuantumScape (QS) with a Reduce rating and $4.70 price target. The firm cites QuantumScape's long path to commercialization, with significant operational and execution risks not priced in, for the Reduce rating. HSBC also initiated ChargePoint (CHPT) with a Hold rating and $2 price target.
BofA initiated coverage of Arrowhead (ARWR) with a Buy rating and $29 price target. Arrowhead's Phase 3 drugs, plozasiran and fazirsiran, anchor the firm's valuation, being valued at $23 per share in its analysis.
TD Cowen initiated coverage of Lantheus (LNTH) with an Outperform rating and $100 price target. A "market leader" in precision diagnostics with key products targeting prostate cancer and cardiovascular disease, Lantheus has multiple collaborations and a rich pipeline that should drive long-term growth, says the firm.
Morgan Stanley initiated coverage of Glaukos (GKOS) with an Equal Weight rating and $65 price target. While the firm thinks pipeline products look "promising," there are regulatory and clinical milestones still to come.
