Roblox upgraded, Bristol Myers 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:
Truist upgraded Roblox (RBLX) to Buy from Hold with a price target of $37, up from $35. The analyst sees a path to 20% upside to consensus 2025 adjusted EBITDA estimates, driven by the core business plus immersive advertising, new platforms and the company's transition away from engagement-based developer subsidies. The firm believes Roblox's upcoming investor day is an opportunity to "shine a light on some of these and their financial ramifications."
Cantor Fitzgerald upgraded Rivian Automotive (RIVN) to Overweight from Neutral with an unchanged $29 price target. The company's Q3 production and deliveries were above expectations, and Rivian looks well-positioned to achieve and exceed its annual guidance, though the stock has underperformed by 27% in the past month and is down about 12% year-to-date, the analyst tells investors in a research note.
BMO Capital upgraded Merck (MRK) to Outperform from Market Perform with a $132 price target. The analyst cites another strong quarter and a strengthening narrative around growth with recent business development and pipeline success for the upgrade. While the 2029 Keytruda loss of exclusivity is well known, the firm is "highly encouraged" with Merck's recent steps to address the eventual revenue loss, the analyst tells investors.
HSBC upgraded Intel (INTC) to Hold from Reduce with a price target of $33, up from $27. The company's Q3 results and Q4 guidance beat from better PCs and operating leverage, the analyst tells investors in a research note. The firm says that while the data center demand overhang remains, improving PC demand and overall execution are "incremental tailwinds" for Intel.
Oppenheimer upgraded Blueprint Medicines (BPMC) to Outperform from Perform with an $85 price target. The company's Q3 earnings included an "impressive beat" on Ayvakit sales due to a substantial increase in new patients on drug, the analyst tells investors.
Top 5 Downgrades:
William Blair downgraded Bristol Myers (BMY) to Market Perform from Outperform without a price target. The slow uptake of several new product launches, which caused a downward revision in this year's guidance and pushed out the time for the new product portfolio to reach $10B in sales by a year, meaningfully reduces confidence in the ability of the new product portfolio to offset losses of exclusivity, particularly as additional products beyond Revlimid and Abraxane begin to see greater impact in 2026, the analyst tells investors. In addition, BMO Capital downgraded Bristol Myers to Market Perform from Outperform with a $60 price target. The firm says the multiple expansion story it has been telling is unlikely to materialize soon given that two quarters of misses and guidance resets make "Bristol difficult to own relative to peers."
Piper Sandler downgraded Enphase Energy (ENPH) to Neutral from Overweight with a price target of $75, down from $150. The company's revenue guidance further declined in Q4 due to destocking headwinds and weaker demand, the analyst tells investors. The firm says that while 2025 may represent a return to annual growth, its confidence in Enphase's velocity of the recovery is low. Given limited visibility and a full valuation given no near-term growth, Piper is "throwing in the towel." Enphase was also downgraded to Perform from Outperform at Oppenheimer
Deutsche Bank downgraded Frontier Group (ULCC) to Hold from Buy with a price target of $5, down from $7.50. While it appears the demand backdrop for Frontier has stabilized, :one can't ignore the fact the company is on track to report another annual earnings loss, its third in three years as a publicly traded company," the analyst tells investors in a research note. The firm says it is not clear when Frontier will return to profitability.
BofA downgraded Hasbro (HAS) to Neutral from Buy with a price target of $53, down from $90, following the company's Q3 report. While noting that Hasbro reported "very strong" Wizards of the Coast revenue, "unfortunately" its consumer products sales declined 19% year-over-year, which was "well below" the firm's estimate for a 13% decline and the consensus call for a 5% drop. The toy business turnaround "needed more than we thought," the analyst tells investors in a post-earnings note.
Citi downgraded PTC Therapeutics (PTCT) to Sell from Neutral with a price target of $17, down from $29, following the company's Q3 earnings and pipeline update. Although the new royalty agreement with Royalty Pharma improves PTC's near-term financial position, the upfront cash comes at the expense of future Evrysdi royalties, which Citi previously viewed as one of the company's key growth drivers, the analyst tells investors.
Top 5 Initiations:
JPMorgan initiated coverage of TKO Group (TKO) with an Overweight rating and $100 price target. TKO offers investors ownership of UFC and WWE, the leading mixed martial arts and professional wrestling promotions, the analyst tells investors. The firm says the company, with support from its parent Endeavor, is well positioned to grow the assets and improve monetization of media, sponsorship, and licensing.
JPMorgan also reinstated coverage of Endeavor Group (EDR) with an Overweight rating and unchanged price target of $31. Endeavor's 51% of ownership of TKO Group brings the company greater scale and reduced leverage, and a publicly traded position that further highlights a discounted valuation for other segments, the analyst tells investors in a research note. The firm believes Endeavor's decision to formally evaluate strategic options along with Silver Lake's announcement that it is working on a take-private proposal "provide a catalyst for shares to move even closer to underlying asset value."
Canaccord initiated coverage of Inventiva (IVA) with a Buy rating and $12 price target. Inventiva's lanifibranor is in Phase 3 study for nonalcoholic steatohepatitis, or NASH, and the pivotal trial, NATiV3, is expected to achieve the last patient with first dose in Q4. Assuming Madrigal Pharmaceuticals' (MDGL) resmetirom receives FDA approval in March 2024, the firm believes lanifibranor has the potential to be the second FDA approved therapeutic for NASH, the analyst tells investors.
Craig-Hallum initiated coverage of MiMedx (MDXG) with a Buy rating and $12 price target in a note to investors partially titled "MiMedx Is A Wound Care Company That We Think Can Become THE Wound Care Company." Recent management changes and a strategic shift away from OA and back toward the core wound care business positions the business to create substantial value for shareholders, says the firm.
Guggenheim initiated coverage of Idacorp (IDA) with a Buy rating and $104 price target. The firm, which calls Idacorp "a top tier utility deserving of a best-in-class multiple," argues that key drivers and catalysts are not already reflected in the shares despite current valuation levels.
