Microsoft upgraded, F5 Networks 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:
HSBC upgraded Microsoft (MSFT) to Buy from Hold with a price target of $413, up from $347. The firm sees an improved outlook following the company's stronger than expected fiscal Q1 results.
Oppenheimer upgraded Adobe (ADBE) to Outperform from Perform with a $660 price target. The firm sees strengthening business momentum, a favorable outlook for fiscal 2024, and "durable growth" for Adobe based on positive fundamental trends and its top position in software for the generative artificial intelligence opportunity gleaned from the firm's customer and industry surveys. DA Davidson also upgraded Adobe to Buy from Neutral with a price target of $640, up from $500.
Guggenheim upgraded Akamai Technologies (AKAM) to Neutral from Sell without a price target. The firm sees potential upside to current 2024 Street estimates, which the firm believes creates a more balanced risk/reward scenario for the shares.
Evercore ISI upgraded Live Nation Entertainment (LYV) to Outperform from In Line with a $100 price target. The firm says the regulatory overhang, uncertainty about 2024 growth, and upside to near-term estimates creates an attractive entry point for the shares.
Northland upgraded Nextracker (NXT) to Outperform from Market Perform with a $45 price target. The firm expects the stock to rise further as the merger arbitrage bets settle in and the stock begins being driven by fundamentals.
Top 5 Downgrades:
Jefferies downgraded Bath & Body Works (BBWI) to Hold from Buy with a price target of $30, down from $45. The firm sees limited growth opportunities for the company after its data across social, foot traffic, and market share suggested a slowing of trends.
KeyBanc downgraded Thermo Fisher (TMO) to Sector Weight from Overweight without a price target. During the earnings call, Thermo provided "a lot of moving parts" with its 2024 macro view of zero or low-single-digit industry decline and its 3% growth goal, the firm tells investors in a research note.
BofA downgraded Fortive (FTV) to Neutral from Buy with a price target of $70, down from $87, after the company reported Q3 core revenue growth of 2.5% that was below the firm's estimate and prior guidance of 3.5%-4.5% year-over-year growth.
BofA downgraded F5 Networks (FFIV) to Underperform from Neutral with a price target of $160, down from $165. The firm expects revenue growth to remain muted, calling for it to be down 2% and up 4% over the next two years, respectively.
Roth MKM downgraded MaxLinear (MXL) to Neutral from Buy with a price target of $18, down from $35. The company reported revenue slightly behind consensus but guided another decline for Q4 below consensus growth expectations, the firm notes.
Top 5 Initiations:
BofA initiated coverage of Paycom (PAYC) with a Buy rating and $330 price target. The firm thinks Paycom is well positioned to continue gaining share with "a leading SaaS offering and a highly efficient model."
BofA initiated coverage of Paylocity (PCTY) with a Neutral rating and $210 price target. While stating that fundamentals "appear attractive," the firm also notes that new customer adds slowed in FY23 despite an increase in sales and marketing costs, which may suggest a slowdown in margin progression in the near-term.
BMO Capital initiated coverage of Procore Technologies (PCOR) with an Outperform rating and $80 price target. With a strong core business in project management, multiple drivers to expand logos, a long-term platform vision to capture more workflows, and margins approaching an inflection to sustained breakeven over the coming year, estimates have "upward tension," the firm tells investors in a research note.
Cantor Fitzgerald initiated coverage of Rocket Lab (RKLB) with an Overweight rating and $6 price target. The firm believes the company benefits from a "proven and successful" launch track record, diversified and recurring customer base, and multiple launch complexes with vertical integration.
RBC Capital initiated coverage of 4D Molecular (FDMT) with an Outperform rating and $25 price target. The shares trading close to cash "creates an attractive buying opportunity" given the company's differentiated platform tailoring gene therapy to specific tissue, the firm says.
