Nvidia upgraded, Apple initiated: 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:
Daiwa upgraded Nvidia (NVDA) to Outperform from Neutral with a price target of $475, up from $408, following the firm's tech tour and checks. The firm has a higher level of confidence that Nvidia's commanding position for AI, and generative AI, will be difficult to replicate near term by the competitors such as AMD (AMD), Intel (INTC) and others given the company's library of programming support, familiarity and developer support, and full stack solution of GPUs, Infiniband networking and support software like AI Enterprise/Omniverse, the analyst tells investors. [read more]
Jefferies upgraded Carnival (CCL) to Buy from Hold with a price target of $25, up from $9. The leadership change and the supply/demand recovery "drive a significant shift from debt to equity value" and should position the shares as more broadly investable, which could progress over several years, the analyst tells investors in a research note. Despite Carnival's year-to-date rally, the "journey from a good trade to long-term investment case remains ahead," says the firm. [read more]
Stifel upgraded Black Diamond Therapeutics (BDTX) to Buy from Hold with a price target of $10, up from $2, following the company's BDTX-1535 phase 1 data released this week. Compared to novel developments that have modest monotherapy efficacy in 2L post-Tagrisso and are forced into combinations or lengthy randomized trials, the BDTX-1535 effect size may potentially allow for rapid monotherapy regulatory paths, the firm says. [read more]
Wolfe Research upgraded FTAI Aviation (FTAI) to Outperform from Peer Perform with a $38 price target after a new analyst at the firm assumed coverage of the name. The firm sees see FTAI as an attractive play on the ongoing recovery in commercial aerospace. [read more]
B. Riley upgraded Enphase Energy (ENPH) to Buy from Neutral with a price target of $214, down from $247. The selloff in the shares year-to-date has brought an attractive entry point for long-term investors, the analyst tells investors. [read more]
Top 5 Downgrades:
Citi downgraded Core Laboratories (CLB) to Sell from Neutral with a price target of $21, down from $22. The firm reduced its Q2 EBITDA forecast by 5% to $18.9M, 6% below the consensus, on North America completion weakness negatively impacting Production Enhancement. Core shares are up 20% year-to-date and have outperformed its oilfield services peers materially, but "this run likely ends soon given negative revisions," the analyst tells investors. [read more]
Bernstein downgraded BeiGene (BGNE) to Market Perform from Outperform with a price target of $196, down from $335. The overhang from the AbbVie (ABBV) patent case will remain while Imbruvica has been underperforming since Calquence and Brukinsa launched, the analyst tells investors. [read more]
CLSA downgraded XPeng (XPEV) to Outperform from Buy with a price target of $13.10, up from $10. Xpeng launched its G6 model on June 29 with the official price starting from Rmb 209,900. The analyst expects G6 could reach 10,000 monthly sales units, helping Xpeng's sales return to 15,000 units per month in Q3. [read more]
Piper Sandler downgraded Innovative Industrial Properties (IIPR) to Neutral from Overweight with an unchanged price target of $80. The analyst "held out hope longer than most" given faith in Innovative Industrial's dominance as the largest cannabis real estate investment trust and management's relationships with institutional capital. However, the outlook for the sector across the states "seems cloudier despite more states legalizing," the firm says. [read more]
BTIG downgraded Sigilon Therapeutics (SGTX) to Neutral from Buy after Eli Lilly (LLY) agreed to acquire all outstanding shares at a cash price of $14.92 per share, totaling about $35M, along with one non-tradeable contingent value right, or CVR, per share, via which the holder may be entitled to receive up to an additional $111.64 per share in cash. The maximum deal price is in line with what Vertex (VRTX) paid for Viacyte, which BTIG calls "a company with much less compelling technology." [read more]
Top 5 Initiations:
Citi initiated coverage of Apple (AAPL) with a Buy rating and $240 price target. While the stock is up 46% year-to-date, Apple is navigating the macro slowdown and inflationary pressure on consumer spending by consistently gaining share from Android phones, the analyst tells investors in a research note. The firm sees 30% further upside potential from current levels and believes the Street is underestimating Apple's continued gross margin expansion. [read more]
Stephens initiated coverage of Occidental Petroleum (OXY) with an Overweight rating and $72 price target. Occidental, with a comprehensive carbon capture utilization and sequestration, or CCUS, strategy that integrates its upstream, midstream, and chemical businesses, is "uniquely positioned within the E&P sector" to capitalize on emerging opportunities in low carbon markets, the firm argues. [read more]
Citi initiated coverage of Dell Technologies (DELL) with a Buy rating and $60 price target. The analyst started a number of technology hardware names with a "mixed stance." The hardware sector is going through a period of cyclical downturn, following a sharp acceleration in pandemic-induced demand, the analyst tells investors. [read more]
Goldman Sachs initiated coverage of PacBio (PACB) with a Buy rating and $17 price target, representing 30% upside. The analyst believes the company's new Revio long read instrument launch is "transformative" and represents the most credible, long term competitive challenge to the established leader in short read sequencing, Illumina (ILMN). [read more]
Citi initiated coverage of Juniper (JNPR) with a Buy rating and $38 price target. The analyst initiated coverage of the communication equipment sector, saying equipment orders have stabilized after a sharp 30% quarter-over-quarter drop in the March quarter. Longer-term, big data continues to drive the need for higher network capacity with 100G for enterprises, 400G for Cloud, and 800G and beyond for artificial intelligence, the analyst tells investors. [read more]
