Macy's upgraded, New York Community 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 Upgrades:
Citi upgraded Macy's (M) to Neutral from Sell with a price target of $18, up from $14. The firm remains skeptical that a takeover of Macy's will materialize but with the shares down 13% since the Wall Street Journal story suggesting a bid was received, it says the stock's risk/reward is less skewed to the downside.
Evercore ISI upgraded Global Payments (GPN) to Outperform from In Line with a price target of $185, up from $129. The analyst sees 2024 "as a year of steadily improving financial performance given cleaner comparisons" for Global Payments following the anniversaries of the NetSpend and Gaming business divestitures, the ramp of EVOP cost synergies, and its "superior positioning" in high growth, tech-enabled solutions.
Guggenheim upgraded CMS Energy (CMS) to Buy from Neutral with a price target of $64, up from $60. CMS reported a FY23 EPS beat, raised 2024 guidance, and increased capex, says the analyst, who sees potential upside remaining on both capex and EPS growth.
Wolfe Research upgraded Allegro MicroSystems (ALGM) to Outperform from Peer Perform with a $35 price target following the stock's greater than 45% pullback from its midyear peak and the earnings reset driven by guidance provided on yesterday's earnings call.
JPMorgan upgraded Janus Henderson (JHG) to Neutral from Underweight with a price target of $31, up from $28. The company reported Q4 earnings well ahead of expectations primarily due to performance fees, below the line gains and a lower tax rate, the analyst tells investors in a research note.
Top Downgrades:
Deutsche Bank downgraded New York Community Bancorp (NYCB) to Hold from Buy with a price target of $7, down from $15. The shares are down 45% since the bank reported "very disappointing" Q4 earnings which included a meaningful increase in credit provision and a step down in the net interest margin outlook, the analyst says.
JPMorgan double downgraded Solo Brands (DTC) to Underweight from Overweight without a price target. The analyst has growing concerns on how the business model has shifted dramatically since the initial public offering narrative.
Stifel downgraded Bio-Techne (TECH) to Hold from Buy with an unchanged price target of $65. With the company's first half of 2024 organic growth flattish and second half expectations calling for something similar, it's hard to see the stock outperforming in the near- to mid-term, particularly given the incremental pharma concerns that led to the fiscal Q2 miss, the analyst tells investors in a research note.
Piper Sandler downgraded Evans Bancorp (EVBN) to Neutral from Overweight with an unchanged price target of $32. Evans reported a core miss in Q4 driven by higher expenses, lower fee income and lower net interest income, says the analyst.
Raymond James downgraded Tractor Supply (TSCO) to Outperform from Strong Buy with a price target of $250, up from $230.
Top Initiations:
Cantor Fitzgerald initiated coverage of Redwire (RDW) with an Overweight rating and $5 price target. The firm believes the company benefits from a sizable order pipeline and contracted awards, diversification of products, customer types, and geography, plus the continued high growth of the space Industry.
Citi initiated coverage of Masco (MAS) with a Neutral rating and $70 price target. The analyst likes Masco's leading market positions in plumbing and paint and exposure to "potentially troughing" existing home sales, but is cautious on the overall 2024 repair and replace demand setup.
Alliance Global Partners initiated coverage of RenovoRx (RNXT) with a Buy rating and $4 price target. RenovoRx's developmental RenovoGem for the treatment of pancreatic cancer can pass pivotal trials, be approved by the FDA, and drive revenues and ultimately profits to the company, the analyst tells investors in a research note.
B. Riley initiated coverage of Ur-Energy (URG) with a Buy rating and $3 price target.
