Meta upgraded, Coinbase 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:
TD Cowen upgraded Meta Platforms (META) to Outperform from Market Perform with a price target of $345, up from $220. The firm, which raised its 2023-2028 estimates following positive Q2 advertising market checks, thinks consensus estimates are likely too low given potential monetization upside from Reels, Threads monetization optionality and the potential for more cost cuts. [read more]
Credit Suisse upgraded Thermo Fisher (TMO) to Outperform from Neutral with an unchanged price target of $620. The analyst believes Thermo is better positioned to navigate the post-pandemic demand correction than its peers given its diversified portfolio, with an increasing mixed towards services, enhanced share gain opportunities, and secular growth opportunities. [read more]
BofA upgraded BioCryst (BCRX) to Buy from Neutral with a $10 price target. Lead asset Orladeyo is the "sole driver" to the firm's valuation, contributing $12 per share, offset by negative net present value for pipeline spending, the analyst tells investors. [read more]
H.C. Wainwright double upgraded Intercept Pharmaceuticals (ICPT) to Buy from Sell with a price target of $19, up from $8. The analyst says three "major value-inflection points" have occurred since May of 2022 for Intercept, and thinks Intercept may continue to grow and significantly expand the PBC market along with CymaBay (CBAY) and GSK (GSK). [read more]
Scotiabank upgraded Snowflake (SNOW) to Outperform from Sector Perform with a price target of $212, up from $137. Snowflake's fiscal 2024 revenue is "now firmly underwritten, which was previously not the case," the analyst tells investors in a research note. [read more]
Top 5 Downgrades:
Barclays downgraded Coinbase (COIN) to Underweight from Equal Weight with a price target of $70, up from $61. The company has surprised on revenues and costs in the past few quarters, but with volumes and USD Coin market cap "depressed," a regulatory overhang that is likely to last for some time, and the significant recent runup in shares, there are few near-term drivers for Coinbase, particularly from a fundamental perspective, the analyst says. [read more]
Morgan Stanley downgraded SoFi Technologies (SOFI) to Underweight from Equal Weight with a price target of $7, up from $6.50. The shares are "mispriced" as they imply bank profitability ramps quickly, to 30%-plus return on tangible common equity, the analyst tells investors in a research note. [read more]
Truist downgraded Activision Blizzard (ATVI) to Hold from Buy with a price target of $95, up from $84, following the US Federal Court ruling in favor of Microsoft (MSFT) to deny a preliminary injunction request from the FTC related to their merger. [read more]
JPMorgan downgraded Carvana (CVNA) to Underweight from Neutral with a $10 price target. The analyst believes Carvana's valuation "has once again disconnected materially from fundamentals." [read more]
Loop Capital downgraded LL Flooring (LL) to Sell from Hold with an unchanged price target of $3 after the company recently rejected a $5.76 per share cash take-out offer from its founder. With existing home sales in decline and interest rates likely to climb, the firm sees "a tough macroeconomic environment" and forecasts LL generating $4M in free cash flow this year as it sells off inventory. [read more]
Top 5 Initiations:
Benchmark initiated coverage of Diamondback Energy (FANG) with a Buy rating and $154 price target. The analyst cites the company's focused operations, improving well productivity, and free cash flow per barrel that is among the highest of its peers. [read more]
BMO Capital initiated coverage of American Tower (AMT) with an Outperform rating and $230 price target. The analyst views American Tower as the best way to invest in the global thematic of wireless connectivity and increased data usage. [read more]
Stifel initiated coverage of Clean Energy Fuels (CLNE) with a Buy rating and $6 price target. The analyst is "increasingly constructive" on the macro environment for dairy renewable natural gas and views Clean Energy as the best vehicle to express a bullish view on the vertical. [read more]
KeyBanc initiated coverage of Axonics (AXNX) with an Overweight rating and $70 price target. The analyst believes Axonics is well positioned to continue driving "rapid penetration of its portfolio in a large underserved market." [read more]
JPMorgan assumed coverage of Procore (PCOR) with an Overweight rating and price target of $84, up from $72. Procore is a software cloud-native platform that offers sector-agnostic products that suit complex construction, the analyst tells investors in a research note. [read more]
