Oracle, Dollar General 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 5 Upgrades:
William Blair upgraded Oracle (ORCL) to Outperform from Market Perform without a price target. Oracle reported a solid Q4 with management confidently reiterating its fiscal 2026 guidance for $65B in revenue and 45%-plus non-GAAP operating margins and indicating potential for upside to these targets, the firm notes.
JPMorgan upgraded Dollar General (DG) to Neutral from Underweight with a price target of $158, up from $120, ahead of the Q4 report. The firm sees sequential sales improvement in fiscal 2024 for the company, supported by management's initiatives around in-stocks, store standards, improving customer service, and signage highlighting value to customers.
Argus upgraded Southwest (LUV) to Buy from Hold with a $40 price target. The company's outlook has improved over the past several months as Southwest and other airlines have opted to limit capacity growth following a post-pandemic spike, the firm tells investors in a research note.
Jefferies upgraded Carvana (CVNA) to Hold from Underperform with a price target of $85, up from $30. The firm says recent expansion in retail gross profit per unit suggests Carvana's operational adjustments may have driven sustainable improvements to unit economics.
Raymond James upgraded Coinbase (COIN) to Market Perform from Underperform without a price target. The firm says that while its long-term bias on Coinbase remains negative, it no longer believes an Underperform is the appropriate near-term investment rating.
Top 5 Downgrades:
Mizuho downgraded Acadia Pharmaceuticals (ACAD) to Neutral from Buy with a price target of $25, down from $39. Given the failed ADVANCE-2 trial, the firm removed sales forecast for Nuplazid in negative symptoms of schizophrenia.
Raymond James downgraded NGM Biopharmaceuticals (NGM) to Market Perform from Outperform without a price target, citing the pending merger with Atlas Neon that is expected to take NGM private in Q2.
BTIG downgraded Alpha Teknova (TKNO) to Neutral from Buy with no price target after the company delivered a roughly 5% revenue miss in Q4 and initiated 2024 revenue guidance that came in 12% below consensus.
Morgan Stanley downgraded Buenaventura (BVN) to Equal Weight from Overweight with a higher price target of $16.30, up from $10.90. The company has made progress with improving its operations, but those measures and the positive outlook for Buenaventura now look to be priced in, the firm argues.
More bearish on the stock, TPH&Co. downgraded Antero Midstream (AM) to Hold from Buy with a price target of $13, up from $12.
Top 5 Initiations:
Bernstein initiated coverage of Regeneron (REGN) with an Outperform rating and $1,125 price target. Despite a "cautious stance on Eylea," the firm argues that Dupixent and oncology growth justify upside in the stock.
RBC Capital initiated coverage of DexCom (DXCM) with an Outperform rating and $165 price target. The firm sees "substantial opportunity" for continuous glucose monitor total addressable market expansion aided by innovation, indication and geographic expansion, and measurements beyond glucose.
Canaccord initiated coverage of Central Garden & Pet (CENT) with a Buy rating and $52 price target. The firm believes the U.S. pet supplies market will continue to grow due to favorable trends tracking within the pet industry, including demographics, health and wellness, humanization, and premiumization.
B. Riley initiated coverage of Bitdeer Technologies (BTDR) with a Buy rating and $9 price target. The firm says the company has significantly reduced its electricity costs over the last nine months, which it views as a well-timed improvement given the bitcoin halving is now just weeks away.
Scotiabank initiated coverage of BBB Foods (TBBB) with an Outperform rating and $33 price target, which represents a 57% potential return. The company's profitability should increase with higher scale and net cash position, the firm tells investors in a research note.
