Nike downgraded, Waste Management upgraded: 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 Upgrades:
Erste Group upgraded Waste Management (WM) to Buy from Hold. Waste Management, which is growing both organically and through acquisitions, is likely to be able to increase its operating margins through cost controls, the analyst tells investors.
Craig-Hallum upgraded Lumentum (LITE) to Buy from Hold.
Edward Jones upgraded Analog Devices (ADI) to Buy from Hold.
Top Downgrades:
TD Cowen downgraded Nike (NKE) to Market Perform from Outperform with a price target of $104, down from $129, following last night's fiscal Q2 report. Consensus estimates are "too high" on a multi-year basis and the next innovation cycle is already modeled in 2025 recovery estimates, the analyst tells investors in a research note.
DZ Bank downgraded Netflix (NFLX) to Hold from Buy with a $495 price target.
TD Cowen downgraded Paychex (PAYX) to Market Perform from Outperform with a price target of $123, down from $132. The analyst believes Paychex's revenue estimates are more likely biased down versus up at this juncture.
JPMorgan downgraded AlloVir (ALVR) to Underweight from Overweight after AlloVir announced the discontinuation of all three ongoing pivotal trials of lead asset posoleucel following a DSMB recommendation to stop studies for futility. This is, "of course, a disappointing and surprising outcome" given what the firm had considered to be de-risking mid-stage data for the product, says the analyst.
Erste Group downgraded Oracle (ORCL) to Hold from Buy. Oracle published lower than expected revenue growth in its latest quarter as Cloud sales in particular grew more slowly, says the analyst, who expects growth rates for sales and profits for Oracle in 2024 below those of the technology sector.
Top Initiations:
Morgan Stanley assumed coverage of Ameriprise (AMP) with an Equal Weight rating and price target of $383, up from $365. The analyst is bullish on growth in wealth management and sees Ameriprise's "transformation story as an attractive play" in a $30 trillion U.S. advice industry.
HSBC initiated coverage of CVS Health (CVS) with a Buy rating and $94 price target. The company has an "attractive and undervalued moat," exposure to a sector with secular growth trends, and the stock trades at a steep discount to its historical valuation, the analyst tells investors in a research note.
Mizuho initiated coverage of Kura Oncology (KURA) with a Buy rating and $26 price target. The company is enrolling patients into a pivotal trial of ziftomenib in relapsed/refractory NPM1-mutant acute myeloid leukemia, or AML, notes the analyst, who says monotherapy ziftomenib could be "first-in-class" in the NPM1-m population that represents 30% of AML diagnoses.
JPMorgan initiated coverage of Altair Engineering (ALTR) with an Overweight rating and $86 price target. Driven by above average top line growth from growing share in the simulation and analysis market through differentiated capabilities in high performance computing, or HPC, and data analytics/AI, the firm sees Altair generating "best-in-class" free cash flow growth of about 20% in the years ahead, the analyst tells investors.
H.C. Wainwright initiated coverage of Biohaven (BHVN) with a Buy rating and $50 price target. The company is well positioned with a pipeline with three potential blockbuster platforms that seek to replicate the success of legacy Biohaven's migraine franchise, says the firm.
