Netflix upgraded, Olaplex 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:
Loop Capital upgraded Netflix (NFLX) to Buy from Hold with a price target of $500, up from $425. The shares have corrected 15% from its recent gains, but more importantly, Netflix's fundamentals continue to improve, the analyst tells investors in a research note. [read more]
Cantor Fitzgerald upgraded Ardelyx (ARDX) to Overweight from Neutral with a price target of $10, up from $5. The analyst increased sales estimates for the company's flagship drug, Xphozah, and thinks the Street is underappreciating its peak sales potential. [read more]
Morgan Stanley upgraded Shift4 Payments (FOUR) to Equal Weight from Underweight with a price target of $57, up from $52. The analyst sees the stock's current valuation as "more appropriate and reflective" of the company's strong volume trends, balanced with its long-term revenue challenges related to falling spreads. [read more]
UBS upgraded Cullen/Frost (CFR) to Neutral from Sell with a price target of $100, up from $97. The firm says its concerns about risks to forward net interest income and multiple compression have largely played out. [read more]
Morgan Stanley upgraded Abercrombie & Fitch (ANF) to Equal Weight from Underweight with a price target of $51, up from $18. The company's Q2 report "lends further credibility" to the A&F turnaround while the Hollister inflection "is in early stages," the analyst tells investors in a research note. [read more]
Top 5 Downgrades:
Piper Sandler downgraded Olaplex Holdings (OLPX) to Underweight from Neutral with a price target of $2, down from $3. Piper's quarterly salon survey shows that instead of seeing improvement, "things look to have stabilized at a weaker level," the analyst tells investors in a research note. [read more]
RBC Capital downgraded Clarivate (CLVT) to Sector Perform from Outperform with a price target of $8, down from $9. The possibility of strategic optionality for the company is likely diminished with higher interest rates, changes in the investor base, and management's focus on turning around product and execution, the firm says. [read more]
TD Cowen downgraded Domo (DOMO) to Market Perform from Outperform with a price target of $14, down from $20. After a "slight" Q2 beat, the company significantly lowered its fiscal 2024 guidance and reduced second half billings growth from 15% to negative 1%, the analyst tells investors in a research note. [read more]
Evercore ISI downgraded FIS (FIS) to In Line from Outperform with a price target of $60, down from $75, based on a revised sum-of-the-parts analysis that factors in what the firm calls "substantially increasing competition" in both U.S. merchant acquiring and in Banking Solutions. [read more]
Deutsche Bank downgraded Digital Realty Trust (DLR) to Hold from Buy with a price target of $131, up from $112. Digital has delivered on its plan "with a highly favorable market backdrop," but cites valuation for the downgrade, seeing limited upside potential from current share levels. [read more]
Top 5 Initiations:
Piper Sandler assumed coverage of Western Alliance (WAL) with an Overweight rating and $60 price target. The company is among the industry's "most heavily discounted bank stocks for a top performing institution with industry leading returns, relative market strength, and a sophisticated management team," the analyst tells investors in a research note. [read more]
Maxim initiated coverage of Performance Shipping (PSHG) with a Buy rating and $4.00 price target. The analyst sees the stock as a pure play on Aframax tankers, which are smaller than other long-range tankers and carry greater flexibility to shift cargo types while offering ability to dock at smaller ports. [read more]
Oppenheimer initiated coverage of Zura Bio (ZURA) with an Outperform rating and $17 price target. With a focus on Phase 2-ready asset ZB-106, also known as tibulizumab, the firm sees Zura having two emerging clinical pipeline programs for hidradenitis suppurativa, or HS, and systemic sclerosis, or SSc, the analyst tells investors. [read more]
Northcoast initiated coverage of Carpenter Technology (CRS) with a Buy rating and $73 price target. [read more]
Canaccord assumed coverage of Beauty Health (SKIN) with a Buy rating and $10 price target. The firm believes the shares have significant upside potential as management continues to expand the platform to new providers, upgrades existing customers to the newest Syndeo systems, and executes on its long term goals. [read more]
