Microsoft upgraded, AT 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:
UBS upgraded Microsoft (MSFT) to Buy from Neutral with a price target of $400, up from $345. With the "steep" Azure growth deceleration now poised to moderate, artificial intelligence catalysts ahead and the recent stock underperformance, a more positive stance on Microsoft seems warranted, the analyst tells investors in a research note. [read more]
Morgan Stanley upgraded Boyd Gaming (BYD) to Equal Weight from Underweight with a price target of $75, up from $69. The analyst is citing strong digital performance through its relationship with Fanduel and better brick and mortar casino results. [read more]
Needham upgraded Hologic (HOLX) to Buy from Hold with a $95 price target. COVID-related headwinds for the company will soon end, and Hologic should be able to grow at least at its 5%-7% organic ex-COVID growth target, the analyst tells investors in a research note. [read more]
Northland upgraded Plug Power (PLUG) to Outperform from Market Perform with a $22 price target. The firm believes Plug is now on "a clear path to cash flow generation" with momentum picking up "with every incremental deal announcement." [read more]
Raymond James raised homebuilder earnings estimates going into Q2 earnings next week, and upgraded several homebuilders to more constructive ratings. Specifically, the analyst upgraded Toll Brothers (TOL) to Strong Buy from Outperform with an increased $100 target price, and upgraded Lennar (LEN), PulteGroup (PHM), KB Home (KBH), and M.D.C. Holdings (MDC) Holdings to Outperform from Market Perform. [read more]
Top 5 Downgrades:
JPMorgan downgraded AT&T (T) to Neutral from Overweight with a price target of $17, down from $22. Based on recent commentary from management lowering estimates for wireless and broadband, the analyst believes AT&T is facing "marginally more pressure" in Mobility and Consumer Wireline as well as ongoing pressures in Business Wireline. [read more]
Wells Fargo downgraded Progressive (PGR) to Equal Weight from Overweight with a price target of $128, down from $162. The prior Overweight rating was predicted on the thesis that Progressive could grow despite taking price. but its June quarter results "proved us wrong" as direct pay in full growth turned negative month-over-month, the analyst tells investors in a research note. [read more]
Piper Sandler downgraded Leslie's (LESL) to Neutral from Overweight with a price target of $7, down from $16, following the preliminary Q3 results and guidance cut. The analyst says that while a variety of factors played into the sales weakness in Q3, there is "also an element of inexplicable traffic weakness." [read more] Leslie's was also downgraded to Neutral from Buy at Guggenheim and to Market Perform from Outperform at William Blair. [read more] [read more]
Oppenheimer downgraded Synchrony Financial (SYF) to Perform from Outperform without a price target. The firm says its thesis has played out with the shares up 22% since its March 16 upgrade. [read more]
UBS downgraded Corning (GLW) to Neutral from Buy with a price target of $39, up from $38. The firm sees the stock as fairly priced and believes Corning's largest business, display glass, has reached trough levels, with sequential improvement expected to begin in Q2, the analyst tells investors in a research note. [read more]
Top 5 Initiations:
HSBC analyst Rajesh Kumar initiated coverage of Eli Lilly (LLY) with a Buy rating and $560 price target. The analyst initiated coverage on 19 U.S. and E.U. Biopharma names saying the sector players will have to compete for deals in a "shrinking pool" as the larger players grapple with loss of exclusivity on their drug portfolios. [read more]
Raymond James initiated coverage of Tidewater (TDW) with a Strong Buy rating and $85 price target. Tidewater is "the global market leader of OSVs" after having recently expanded its fleet and its market leadership "comes with a fairly low levered balance sheet and a rising industry tide," the analyst tells investors. [read more]
HSBC initiated coverage of Pfizer (PFE) with a Buy rating and $50 price target. While the market focus remains on LOEs and pricing discussion, HSBC seeks opportunities created by the tailwinds from demographics, innovation and low valuations, the analyst tells investors in a research note. [read more]
CL King initiated coverage of EnerSys (ENS) with a Buy rating and $137 price target. [read more]
Litchfield Hills initiated coverage of LZG International (LZGI) with a Buy rating and $5 price target. Under its FatBrain AI and other brands, the company offers a "comprehensive suite" of artificial intelligence solutions that work by plugging into existing software-as-a-service products, the analyst tells investors in a research note. [read more]
