Snap upgraded, Okta 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:
Jefferies upgraded Snap (SNAP) and to Buy from Hold with a price target of $16, up from $12, as it sees catalysts for revenue growth upside in fiscal 2024. Jefferies has increasing optimism around the recovery in the direct response platform.
Jefferies upgraded Pinterest (PINS) to Buy from Hold with a price target of $41, up from $32, as it sees catalysts for revenue growth upside in fiscal 2024. The upgrade of Pinterest is based on increasing conviction in the company's ability to grow revenue 20%-plus in fiscal 2024, the firm tells investors in a research note. \
Bernstein upgraded Restaurant Brands (QSR) to Outperform from Market Perform with an $85 price target. The firm says Restaurant Brands is "reclaiming its magic" following a turnaround that began in 2022.
Citi upgraded Farfetch (FTCH) to Neutral from Sell and removed the firm's price target in light of press reports suggesting Farfetch's Executive Chairman and founder Jose Neves is in talks to take the company private, Farfetch's subsequent cancellation of its Q3 results release and presentation and Richemont's subsequent press release stating its intention not to lend to or invest in Farfetch.
Morgan Stanley upgraded HP Enterprise (HPE) to Equal Weight from Underweight with an unchanged price target of $16. The firm says further multiple compression is unlikely, particularly with the company's longer term enterprise artificial intelligence server opportunity.
Top 5 Downgrades:
Wells Fargo downgraded Okta (OKTA) to Equal Weight from Overweight with a price target of $70, down from $80. The firm believes Okta's focus on margin expansion at a critical time like this is an oversight. KeyBanc, Scotiabank, WestPark, and TD Cowen also downgraded Okta to Neutral-equivalent ratings.
Baird downgraded Petco (WOOF) to Neutral from Outperform with a price target of $3, down from $8, telling investors after management's "latest operational reset" that the timing of profit stabilization and inflection is "proving more elusive than we anticipated."
Barclays downgraded Bilibili (BILI) to Underweight from Equal Weight with a price target of $10, down from $15. The company reported "inline-ish" Q3 results but a weaker than expected Q4 revenue growth outlook now is compounding the challenges Bilibili has been dealing with to fix its long standing bloated cost structure, the firm tells investors in a research note.
BTIG downgraded Farfetch (FTCH) to Neutral from Buy with a $5.50 price target. Given recent events, shares have become almost unanalyzable, and the unexpected possibility the joint venture with Richemont may not close introduces "significant" downside risk, the firm argues.
JPMorgan downgraded Ericsson (ERIC) to Neutral from Overweight with a price target of $5.90, down from $7.80. The firm thinks the first half of 2024 is going to remain challenging for Ericsson despite the company seeing the fruits of its restructuring program announced Q4 of 2022.
Top 5 Initiations:
HSBC initiated coverage of Molson Coors (TAP) with a Hold rating and $68 price target. The firm thinks sustaining volume growth beyond 2024 for Molson's two big mainstream brands, fixing Blue Moon, and delivering innovation winners might be difficult goals to achieve.
Jefferies initiated coverage of GE HealthCare (GEHC) with a Hold rating and $80 price target. The company is prioritizing a shift to high-growth areas through internal and external investment, and there is a runway for margin expansion, but this is mostly baked into the shares, the firm says.
Raymond James initiated coverage of Ecolab (ECL) with an Outperform rating and $210 price target. The firm says Ecolab's sales to the foodservice, hotel, hospital, and pharmaceutical industries have strong predictability.
Jefferies initiated coverage of Paysafe (PSFE) with a Hold rating and $11 price target. While encouraged by the company's progress, the firm says a near-term share re-rating is unlikely with the company's leverage still elevated, gross margin headwinds in Merchant, and limited visibility into medium term Digital Wallet growth.
Seaport Research initiated coverage of Nuvei (NVEI) with a Buy rating and $25 price target. The firm likes the outlook for Global Commerce, where it sees numerous opportunities for further expansion in volumes and revenues, and also believes the Paya acquisition will catalyze strong future growth in the B2B, Government and ISV channel.
