Super Micro raised, Dick's Sporting 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 Upgrades:
Wedbush upgraded Super Micro Computer (SMCI) to Neutral from Underperform with a $250 price target. The firm says it "missed a fundamental shift" in the company's fiscal Q2 report that drove growth over the last few months and "created the foundation for the upbeat" fiscal 2024 outlook. [read more]
Morgan Stanley double upgraded Brown-Forman (BF.A) to Overweight from Underweight with a price target of $75, up from $66. With the company's gross margin "headwinds likely to turn to a tailwind" and reduced concerns over earlier U.S. spirits industry softness, the stock's relative valuation is now compelling, the analyst tells investors in a research note. [read more]
Wells Fargo upgraded Suncor Energy (SU) to Overweight from Equal Weight with a price target of C$54, up from C$44. The analyst believes the company's new senior management has the vision and strategy to improve execution, returns and free cash flow. [read more]
Edward Jones upgraded Dollar General (DG) to Buy from Hold and added the shares to the firm's Stock Focus List. The attractive fundamentals of the dollar store industry, reduced internet competition and the long-term potential for continued store growth create attractive store economics and growth potential for Dollar General, the firm says. [read more]
Craig-Hallum upgraded Citi Trends (CTRN) to Buy from Hold with a price target of $32, up from $18, following the company's Q2 report. While same-store sales growth remained negative in Q2, trends have "decidedly improved" and improve sequentially each month in Q2, the analyst tells investors. [read more]
Top Downgrades:
BofA downgraded Dick's Sporting (DKS) to Neutral from Buy with a price target of $125, down from $180. Following the company's "disappointing" Q2 report, the firm sees increased risk to Dick's sales and margin outlook due to normalization of consumer spending on categories, like outdoor apparel and bikes, that outperformed during COVID-19 and the re-opening of discretionary spending on areas such as travel and entertainment "pulling spending away from COVID winners," the analyst tells investors. [read more] Dick's Sporting was also downgraded to Neutral from Outperform at Wedbush. [read more]
Piper Sandler downgraded Premier (PINC) to Neutral from Overweight with a price target of $25, down from $44, post the fiscal Q4 report. The firm says its Overweight thesis has not played out as it expected the company's Supply Chain Solutions segment to deliver positive comps starting in the second half of 2023. [read more]
TD Cowen downgraded PhenomeX (CELL) to Market Perform from Outperform with a $1 price target, citing Bruker's (BRKR) plans to acquire the company. [read more]
Top Initiations:
Barclays initiated coverage of Duke Energy (DUK) with an Overweight rating and $96 price target. The analyst initiated coverage of 26 stocks within the U.S. power and utilities sector with a Neutral industry view. [read more]
Wedbush initiated coverage of Legacy Housing (LEGH) with an Outperform rating and $30 price target. Legacy, which produces manufactured housing, originates consumer loans on Legacy produced homes, and originates loans to manufactured home communities, provides an affordable housing solution and has been "consistently GAAP profitable since coming public in 2018," the analyst tells investors. [read more]
BofA resumed coverage of Ecopetrol (EC) with a Neutral rating and $11.50 price target. The firm notes concerns from government ownership of about 88% of Ecopetrol shares and the resulting influence on pricing policy and investment decisions, but believes these risks are "priced in" and thinks dividend prospects are "substantial." [read more]
Noble Capital initiated coverage of ODP Corporation (ODP) with an Outperform rating and $65 price target. This is "not your father's Office Depot," with two established cash flowing businesses in ODP Business Solutions and Office Depot along with two growth businesses in Veyer and Varis, says the analyst. [read more]
DA Davidson last night initiated coverage of GMS Inc. (GMS) with a Buy rating and $82 price target. The analyst believes wallboard pricing will be "more stable than feared" amid healthy industry operating rates and synthetic gypsum challenges. [read more]
