Micron upgraded, Foot Locker 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:
Stifel upgraded Micron Technology (MU) to Buy from Hold with a price target of $120, up from $80. Channel checks confirm DRAM supply is tightening and on a trajectory to recover into the 90s by mid-year, the firm tells investors in a research note.
BofA upgraded Edwards Lifesciences (EW) to Buy from Neutral with a price target of $105, up from $97. After having hosted the company's CEO, CFO and Treasurer for investor meetings, the firm came away more bullish on Evoque, TAVR and "even sees asymptomatic green shoots."
TD Cowen upgraded Shake Shack (SHAK) to Outperform from Market Perform with a price target of $125, up from $91. The firm expects multi-year positive adjusted EBITDA revisions for the company, driven by upside to restaurant level margins through 2026.
Baird upgraded Akamai Technologies (AKAM) to Outperform from Neutral with a price target of $135, up from $128. The firm recommends taking advantage of the recent share weakness
Exane BNP Paribas upgraded Toast (TOST) to Outperform from Neutral with a price target of $30, up from $21, as the firm sees "little reason to not like Toast." With a clear path to GAAP profitability, upside risk to fiscal 2024 guidance, an "unmatched" competitive position and fast international market share gains, now is the time to turn more bullish on the stock, Exane tells investors in a research note.
Top 5 Downgrades:
Telsey Advisory downgraded Foot Locker (FL) to Market Perform from Outperform with a price target of $28, down from $38. The firm says higher than expected spending in 2024 is resulting in a more gradual pace of operating margin recovery than the firm anticipated.
Jefferies downgraded Nordstrom (JWN) to Hold from Buy with a price target of $17, down from $18. The firm views the stock's current valuation as fair given the company's current trajectory and more time needed to restore the pre-pandemic algorithm than hoped.
JPMorgan downgraded Victoria's Secret (VSCO) to Underweight from Neutral with a price target of $15, down from $22, following the Q4 report. The company's sales growth and gross profit dollars have declined sequentially in an increasingly cautious macroeconomic backdrop, hindering the brand's growth and profitability profile, the firm notes.
BofA downgraded Cogent (CCOI) to Neutral from Buy with a price target of $75, down from $85. While in the longer-term the firm believes in Cogent's opportunity and its ability to cut costs, it thinks that a positive inflection point "seems more likely in 2025," versus mid-year 2024 as the firm had previously thought.
Northland downgraded Allient (ALNT) to Market Perform from Outperform with a price target of $40, down from $45. While the firm thinks shares are "modestly undervalued," it was surprised to see shares jump higher following quarterly results given that it does not see a recovery in the company's end markets until the second half of 2024, at the earliest.
Top 5 Initiations:
Jefferies initiated coverage of Rivian Automotive (RIVN) with a Buy rating and $16 price target. Rivian has looked closest to Tesla (TSLA) in "spirit," with its own software stack, strong brand identity, global potential, and similar growth pains, the firm tells investors in a research note.
Wolfe Research initiated coverage of Jack Henry (JKHY) with a Peer Perform rating and no price target. While the firm views Jack Henry as "a clear example of bank-tech done right," with focus on its core competency helping drive sustainable high-single digit growth and delivering solid return on invested capital, it believes valuation reflects this.
Piper Sandler initiated coverage of Edgewise Therapeutics (EWTX) with an Overweight rating and $48 price target. The firm believes EDG-7500 has broad potential in hypertrophic cardiomyopathy.
Lake Street initiated coverage of MiMedx (MDXG) with a Buy rating and $12 price target. MiMedx "put the past in the past" after years of turmoil by appointing Joe Capper as CEO in January of last year, says the firm, which calls Capper "a strong and experienced executive we know from his days leading BioTelemetry."
Cantor Fitzgerald initiated coverage of Despegar.com (DESP) with an Overweight rating and $11 price target. Despegar.com, a distribution channel for more than 240 airlines, 660,000 hotels, and 1,260 car rental agencies, should be able to drive a 15% revenue compound annual growth rate in its business, at a minimum, due to its ability to increase market share given its growing breadth of inventory and successful loyalty programs, the firm.
