Marriott downgraded, Okta upgraded: 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:
Goldman Sachs double upgraded Okta (OKTA) to Buy from Sell with a price target of $91, up from $77. The shares can outperform over the next 12 months, driven by remaining performance obligations and annual recurring revenue acceleration back to 15%-20%, the firm argues. [Read more]
Goldman Sachs upgraded Teledyne (TDY) to Buy from Neutral with a price target of $495, up from $423. Teledyne is one of the "highest quality, most consistent, best managed companies" in the sector that compounds cash flow over time, the firm says. [Read more]
BofA double upgraded Parsons (PSN) to Buy from Underperform with a price target of $65, up from $46. The firm cites stronger than expected growth from both the company's organic and inorganic opportunities for the upgrade. [Read more]
Barrington upgraded Anika Therapeutics (ANIK) to Outperform from Market Perform with a $24 price target. The risk/reward at current levels for Anika "strongly favors investment," Barrington contends. [Read more]
Piper Sandler upgraded Coterra Energy (CTRA) to Overweight from Neutral with a price target of $35, up from $30. The company's Q2 print and updated long-term guidance demonstrate expectations from continued strong execution across the portfolio, the firm tells investors in a research note. [Read more]
Top 5 Downgrades:
Bernstein downgraded Marriott (MAR) to Market Perform from Outperform with a price target of $218, up from $204. The firm cites valuation for the downgrade of Marriott with the shares up 42% year-to-date. [Read more]
Citi downgraded Urban Outfitters (URBN) to Neutral from Buy with a price target of $40, up from $36. The firm anticipates a Q2 earnings beat when the company reports on August 22, but believes market expectations are high into the print. [Read more]
BMO Capital downgraded Capri Holdings (CPRI) to Market Perform from Outperform with a price target of $57, down from $68, after the company entered into an agreement to be acquired by Tapestry (TPR) for $57 per share in cash. [Read more]
BofA downgraded Keysight Technologies (KEYS) to Underperform from Neutral with a price target of $148, down from $163. The firm expects the company's July quarter orders to decline more than consensus expectations and sees downside risk to fiscal 2024 estimates. [Read more]
Argus downgraded Boston Properties (BXP) to Hold from Buy. The REIT is being hurt by rising office vacancies, weak "return-to-office" trends, and high interest expense, and while the management has raised its 2023 FFO guidance, it still projects a 4% decrease in FFO at the midpoint of the range, the firm says. [Read more]
Top 5 Initiations:
HSBC initiated coverage of Monster Beverage (MNST) with a Buy rating and $72 price target. Monster's purchase of Bang "addresses a missing growth driver," which is recruiting women into a category that typically skews male 60%-40%, the firm says. [Read more]
Telsey Advisory initiated coverage of Academy Sports (ASO) with an Outperform rating and $72 price target. The firm views Academy Sports as a unit and sales growth story driven by market share gains as the company expands in existing markets and enters new markets with a better assortment, customer service, and go-to-market strategy. [Read more]
Morgan Stanley initiated coverage of Oddity (ODD) with an Equal Weight rating and $57 price target. The firm sees strong long-term revenue growth prospects for the company but believes the stock's valuation already reflects the positives. [Read more] BofA also initiated coverage of Oddity with a Neutral rating and $60 price target, [Read more] while Truist started the name with a Hold rating and $54 price target. [Read more]
Needham initiated coverage of Agilysys (AGYS) with a Buy rating and $92 price target. The firm believes the company's market leadership in the hospitality industry and its "steadily growing" subscription revenue base balanced with steady profitability support the stock's premium valuation. [Read more]
BTIG initiated coverage of Playstudios (MYPS) with a Neutral rating and no price target. The firm sees a number of potential near- and medium-term catalysts for growth and "substantial runway" for margin improvement, but lateral reads on the mobile gaming industry have been "mixed to negative lately." [Read more]
