Nvidia upgraded, Estee Lauder 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:
Stifel upgraded Nvidia (NVDA) to Buy from Hold with a price target of $600, up from $440. The analyst cites "another exceptional quarter" from the company, its "significantly stronger-than-expected outlook," and extended demand visibility for the upgrade. [read more] Exane BNP Paribas also upgraded Nvidia to Outperform from Neutral with a $745 price target following last night's results. [read more]
Wedbush upgraded AMC Entertainment (AMC) to Neutral from Underperform with a price target of $19, up from $2, following the 1-for-10 reverse stock split. The analyst thinks AMC is well positioned against an improving industry backdrop. [read more]
Raymond James double upgraded Prudential (PRU) to Strong Buy from Market Perform with a $125 price target, which represents 38% upside potential. The analyst expects Prudential will "re-rate" as it proves out its transformation strategy and reflects potential for increased share repurchases as a catalyst. [read more]
BofA upgraded Williams-Sonoma (WSM) to Neutral from Underperform with a price target of $146, up from $108, following the company's better-than-expected Q2 results. Operating margins were "much better than expected" at 14.6% and these "strong" Q2 margins take the "downside scenario off the table" as full margin reversion looks "increasingly less likely," the analyst tells investors. [read more]
Wolfe Research upgraded Discover Financial (DFS) to Outperform from Peer Perform with a $104 price target. The analyst views Discover as a 25% return on tangible common equity generator in normal times and believes the recent underperformance fueled by internal control and risk management deficiencies will ultimately be remediated. [read more]
Top 5 Downgrades:
Bernstein downgraded Estee Lauder (EL) to Market Perform from Outperform with a price target of $160, down from $230. The firm says the company's fiscal Q4 results "were not the clearing event that we wanted to see." [read more]
BofA double downgraded Vizio (VZIO) to Underperform from Buy with a price target of $6, down from $11, as the firm sees headwinds from a weaker macro environment weighing on the device side of the business. [read more]
Piper Sandler downgraded Analog Devices (ADI) to Neutral from Overweight with an unchanged price target of $190 following the July quarter report. While the company is doing almost everything right in terms of reducing excess inventory, "we simply are not comfortable with the timeframe of the economic downturn," the analyst tells investors in a research note. [read more]
Wolfe Research downgraded Ally Financial (ALLY) to Peer Perform from Outperform with a year-end fair value range of $23-$34. The analyst previously assumed Ally's net interest margin would benefit in a recession but now sees a greater likelihood of "higher-for-longer" rates exacerbating its margin pressures. [read more]
Morgan Stanley downgraded IFF (IFF) to Equal Weight from Overweight with a price target of $75, down from $112. The analyst says that while de-stocking is coming to an end, a broad-based consumer demand rebound is yet to emerge. [read more]
Top 5 Initiations:
Raymond James initiated coverage of Fifth Third Bancorp (FITB) with a Market Perform rating and no price target. Fifth Third is positioned for long-term loan growth but similar to peers, the bank faces near-term loan and deposit growth headwinds due to the uncertain economic outlook and higher interest rates, the analyst tells investors in a research note. [read more]
Alliance Global Partners initiated coverage of Canoo (GOEV) with a Buy rating and $1.55 price target. The combination of the company's "unique modular design," large order book, ramping production capacity and clearer funding path make Canoo "an attractive investment," argues the analyst. [read more]
BTIG initiated coverage of Genmab (GMAB) with a Buy rating and $44 price target. Genmab is a "platform-innovating" biotechnology company with a management team that has generated eight marketed therapeutics to date, the analyst tells investors in a research note. [read more]
Wedbush last night initiated coverage of Werewolf Therapeutics (HOWL) with an Outperform rating and $9 price target. The company is is developing conditionally-activated cytokines that leverage its proprietary Predator platform for the treatment of solid tumors, the analyst says. [read more]
Barclays initiated coverage of Xcel Energy (XEL) with an Equal Weight rating and $60 price target. The shares have underperformed due to adverse outcomes in Minnesota and lawsuits related to the Marshall wildfires, says the analyst. [read more]
