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:
Northcoast upgraded Shake Shack (SHAK) to Buy from Neutral with an $85 price target to reflect a more bullish outlook on fundamentals based on recent checks and a review of NCR's foot traffic index.
Piper Sandler upgraded KeyCorp (KEY) to Overweight from Neutral with a price target of $13.50, up from $12. While the stock has already begun to recover, it remains among the worst year-to-date performers among the universal banks, the analyst tells investors in a research note.
Goldman Sachs upgraded MorphoSys (MOR) to Neutral from Sell with a price target of $9.25, up from $3.50. The firm has increased confidence in the upcoming MANIFEST-2 readout for pelabresib and commercial opportunity in MF, the analyst says.
New Street upgraded PagSeguro Digital (PAGS) to Buy from Neutral with a $14 price target. The firm says total payment volume momentum at the Brazil payment companies is getting better, and notably so at PagSeguro.
BofA upgraded Unity (U) to Buy from Neutral with a price target of $56, up from $46, after Unity announced pricing and plan changes for Unity Runtime and Unity Plus customers. The firm's analysis points to improved monetization of the company's "industry leading" mobile game creation engine and it believes that known risks and execution issues are "more than priced into the stock.
Top 5 Downgrades:
MoffettNathanson downgraded DoorDash (DASH) to Market Perform from Outperform. The analyst believes the resumption of student loan repayments introduce bookings risk to food delivery.
Piper Sandler downgraded Truist Financial (TFC) to Neutral from Overweight with a price target of $32, down from $36. Management announced a 5% cost program earlier this week, which takes away a potential catalyst for the shares, the analyst tells investors in a research note.
Benchmark downgraded Staar Surgical (STAA) to Hold from Buy and removed the firm's price target after the company laid out its plan to reignite sales growth between 2024 and 2026 yesterday at an investor event. The lingering question coming into the meeting was whether the U.S. sales effort could ramp quickly enough in the next two years to reaccelerate growth as the Chinese market matures, the firm says.
Truist downgraded Vornado Realty Trust (VNO) to Hold from Buy with a price target of $27, up from $22. The analyst cites valuation for the downgrade following the stock's 65% rise over the past three months.
Stifel downgraded Lindsay (LNN) to Hold from Buy with a price target of $135, down from $146. After having recently completed a survey of 50 of Lindsay's domestic irrigation dealers, the firm said that network sentiment was largely unchanged from its prior survey with volume now expected to be down 0.8% over the next 12 months.
Top 5 Initiations:
HSBC initiated coverage of Microsoft (MSFT) with a Hold rating and $347 price target. The firm initiated coverage on 10 U.S. technology companies. The U.S. technology sector is experiencing tailwinds that will bolster operating performances for some companies, but not all, the analyst tells investors in a research note.
Needham initiated coverage of Arm (ARM) with a Hold rating. Arm's architecture is "a foundation of smartphones," but the firm sees the world "entering a post-smartphone era" as high-performance computing and IoT expected to lead the next phase of semiconductor growth.
Wolfe Research last night initiated coverage of Applied Materials (AMAT) with an Outperform rating and $185 price target. The firm named the company its top pick in the semiconductor capital equipment group.
BofA initiated coverage of Axcelis (ACLS) with a Buy rating and $225 price target. The firm believes the Street is "underappreciating" the company's exposure to some of the fastest growing semis end markets, share gains, and its "superior growth prospects over semicap peers," the analyst tells investors.
WestPark Capital initiated coverage of Regeneron (REGN) with a Hold rating.