Intel upgraded, Target 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 Intel (INTC) to Buy from Neutral with a price target of $50, up from $37. The firm believes Intel is lining up "significant" new server product launches and foundry customer announcements in the next six months.
Guggenheim upgraded BorgWarner (BWA) to Buy from Neutral with a $41 price target. The firm views post earnings weakness as "unjustified" given its view that the "market fundamentally has EV risks wrong" and that long-term BorgWarner continues to win in electrification, with attractive customer mix.
BofA upgraded ITT (ITT) to Buy from Neutral with a price target of $125, up from $105. The firm cites the company's "resilient" end market exposures, "differentiated" auto exposure, and "underappreciated" margin expansion opportunities for the upgrade.
Deutsche Bank upgraded Goodyear Tire (GT) to Buy from Hold with a price target of $21, up from $13, after the company unveiled operational and strategic plans it looks to execute over the next 24 months, after an in-depth board-led review as part of its agreement with an activist investor.
Raymond James upgraded CommScope (COMM) to Market Perform from Underperform without a price target as it believes the stock's risk/reward has come into balance.
Top 5 Downgrades:
TD Cowen downgraded Target (TGT) to Market Perform from Outperform with a price target of $148, down from $161, post the Q3 report. Target's discretionary comparisons ease considerably in the second half of fiscal 2024, which could drive better numbers, but also imply the "cautious factor" that its guidance is more likely to rely on a strong second half of the fiscal year versus the first half, the firm tells investors in a research note.
BofA downgraded Advance Auto Parts (AAP) to Underperform from Neutral with a price target of $43, down from $60. The company reported a "disappointing" Q3 earnings report, with expectations for continued challenges remaining over the medium term, the firm notes.
Piper Sandler downgraded Deckers Outdoor (DECK) to Neutral from Overweight with a price target of $650, up from $620. The firm says its Overweight thesis has largely played out and the stock's valuation now looks fair.
Northland downgraded Maxeon Solar (MAXN) to Market Perform from Outperform with a price target of $7, down from $25, after the company delivered an inline Q3 and "weak" Q4 guidance driven by restructuring and other one-timers flowing through cost of goods and opex.
Argus downgraded Cboe Global Markets (CBOE) to Hold from Buy. The stock price has exceeded the firm's prior target following its recent run-up, while the Q3 earnings were well above consensus estimates and the management expects organic net revenue to grow 7%-9% in 2023, the firm tells investors in a research note.
Top 5 Initiations:
Deutsche Bank initiated coverage of DoorDash (DASH) with a Buy rating and $125 price target, implying 30% upside from current levels. With DoorDash capturing only 1% of its overall market via users that represent only 7% of available homes, "there is ample runway for user growth from here," says the firm.
Deutsche Bank initiated coverage of Wayfair (W) with a Buy rating and $55 price target, suggesting 16% upside from current levels. The firm expects the company to continue to build on its share position as it drives industry-leading supply choice, delivery speeds, and price.
Wells Fargo initiated coverage of MongoDB (MDB) with an Overweight rating and $500 price target. The firm sees MongoDB as the best AI play in software infrastructure given its ever-expanding list of new workloads.
Redburn Atlantic initiated coverage of Philip Morris (PM) with a Neutral rating and $95 price target. The stock's premium to the tobacco peers is justified, but there is risk of the company "falling short of ambitious targets," says the firm.
Goldman Sachs initiated coverage of TopBuild (BLD) with a Buy rating and $355 price target, implying 22% upside from current levels. As one of the largest installers and distributors of insulation in North America, execution of TopBuild's strategy along with favorable operating dynamics should drive upside to results and the stock over the next 12 months, the firm argues.
