Snowflake, MongoDB downgraded to Sell: 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:
Barclays upgraded 3M (MMM) to Overweight from Equal Weight with a price target of $126, up from $111. The firm sees further portfolio and cost structure optimization ahead for 3M along with bottoming shielded controlled impedance and electronics markets.
UBS upgraded Chart Industries (GTLS) to Buy from Neutral with a price target of $170, up from $152. The company's execution continues to improve, and the benefits of the Howden deal are now resulting in strong de-leverage, the firm tells investors in a research note.
Stephens upgraded Truist Financial (TFC) to Overweight from Equal Weight with a price target of $43, up from $41. The "dust has settled on the not-so-secret sale" of Truist Insurance Holdings, allowing unhappy holders to invest elsewhere, says the firm.
Raymond James upgraded Delek Logistics (DKL) to Outperform from Market Perform with a $45 price target. Delek is trading near the bottom of a three-year range, which makes the valuation look more attractive, the firm says.
UBS upgraded Cognex (CGNX) to Buy from Neutral with a price target of $54, up from $42. The firm sees an "increasingly unique opportunity to own high quality growth at a discount."
Top 5 Downgrades:
Redburn Atlantic downgraded Snowflake (SNOW) to Sell from Neutral with a price target of $125, down from $180, as the firm believes the company's architectural limitations "make it vulnerable to future trends." The recent profit warning signals ongoing headwinds as optimization shifts from storage to the platform's processing core, contends Redburn.
Redburn Atlantic downgraded MongoDB (MDB) to Sell from Neutral with a price target of $295, down from $410. MongoDB lacks a clear generative artificial intelligence advantage, posing a budget reallocation risk that the stock's current valuation does not reflect, the firm tells investors in a research note.
Stephens downgraded Fifth Third (FITB) to Equal Weight from Overweight with a $41 price target. The firm says shares now trade at a "healthy premium" following the successful re-rating of valuation over the last decade and it feels that while Fifth Third will maintain its fundamental ranking among peers, there's less upside in price.
Wells Fargo downgraded Nuscale Power (SMR) to Underweight from Equal Weight with a price target of $4.50, down from $7.50. The firm believes the stock's 207% rally year-to-date is connected to positive developments for nuclear owners Constellation Energy (CEG) and Talen Energy (TLNE), but thinks investor enthusiasm for Nuscale Power is misguided.
Leerink downgraded Fusion Pharmaceuticals (FUSN) to Market Perform from Outperform with a price target of $21, up from $17, after AstraZeneca (AZN) announced plans to acquire the company for $21/share in cash plus a contingent value right of $3/share.
Top 5 Initiations:
BofA initiated coverage of Avis Budget (CAR) with a Buy rating and $170 price target, which implies 55% upside. The firm sees shares at an attractive entry point amid recent weakness and expects Avis to have a stronger earnings recovery than peers as it benefits from favorable travel spending trends, steadier pricing and efficiency efforts.
BofA initiated coverage of Hertz (HTZ) with a Neutral rating and $9 price target. 2024 headwinds are factored in the stock, but earnings growth will likely be curbed by a sizable increase in vehicle interest expense in 2024 as well as in 2025, the firm argues.
KeyBanc initiated coverage of the DevOps group with Overweight ratings on GitLab (GTLB) and JFrog (FROG) and Sector Weight ratings on Atlassian (TEAM) and HashiCorp (HCP). The firm views DevOps as a critical subsector of software and a "must-own category" for software investors.
Morgan Stanley initiated coverage of Inspire Medical (INSP) with an Overweight rating and $250 price target. With a solid track record of execution, multiple catalysts on the horizon, and an emerging profitability profile, Inspire is well positioned to exceed Street estimates over the mid-term, the firm tells investors in a research note.
H.C. Wainwright initiated coverage of Voyager Therapeutics (VYGR) with a Buy rating and $30 price target. The firm expects the company's wholly-owned and partnered programs to generate at least four Investigational new drug filings in 2024 and 2025, potentially generating key clinical proof-of-biology data as early as 2025, further validating the platform.
