Target downgraded, Spotify upgraded: 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:
Deutsche Bank upgraded Spotify (SPOT) to Buy from Hold with a $180 price target. The analyst views the post-earnings selloff as overdone. While investors are taking a "shoot first, ask questions later" approach following the year-to-date rally and with the pricing catalyst now in the rearview mirror, the firm came away from the earnings report "modestly more constructive." [Read more]
Morgan Stanley upgraded NetApp (NTAP) to Equal Weight from Underweight with a price target of $74, up from $60. The stock has already priced in the current place in the cycle as estimates are unlikely to be revised down at this point, the firm said. [Read more]
Morgan Stanley upgraded WW (WW) to Overweight from Equal Weight with a price target of $13, up from $5, calling it an "undervalued turnaround story." [Read more]
Craig-Hallum upgraded Vicor (VICR) to Buy from Hold with a price target of $80, up from $60, based on the firm's conclusion that the company has returned to the Nvidia (NVDA) supply chain. [Read more]
LifeSci Capital upgraded Third Harmonic Bio (THRD) to Outperform from Market Perform. The firm cites its belief in the potential for mast cell targeting agents and Third Harmonic's go-forward plans for the upgrade. [Read more]
Top 5 Downgrades:
Raymond James double downgraded Target (TGT) to Market Perform from Strong Buy without a price target. Target's quarter-to-date sales and traffic trends have remained soft after a step-down earlier in the quarter, which is an indication that the retailer is losing sales momentum, the firm says. [Read more]
Kalinowski downgraded Cheesecake Factory (CAKE) to Neutral from Buy. The firm's rating change reflects rising concerns about same-store sales trends at the namesake concept as consumer "belt-tightening" may take a greater hold over the next 6-12 months. [Read more]
Morgan Stanley downgraded RTX (RTX) to Equal Weight from Overweight with a price target of $95, down from $110. The "risk of unknown unknowns" from the Geared Turbofan engine will weigh on investment sentiment despite the strong aerospace end market growth, the firm argues. [Read more]
B. Riley downgraded Dycom Industries (DY) to Neutral from Buy with a price target of $111, down from $134. The firm cites weakening visibility near-term for fiber demand and corresponding contractor activity for the downgrade. [Read more]
KeyBanc downgraded Aspen Technology (AZPN) to Sector Weight from Overweight without a price target. The firm says the company's' fiscal Q4 "will be a make-or-break quarter" and believes the bar of 10% annual contract value growth guidance for fiscal 2024 "is a difficult one to clear." [Read more]
Top 5 Initiations:
TD Cowen initiated coverage of MicroStrategy (MSTR) with an Outperform rating and $520 price target. This is not a short-term trading strategy, but rather reflects a belief that ultimately, bitcoin will prove a superior store of value relative to metals and fiat currencies, notes the firm, which sees MicroStrategy as "an attractive vehicle for investors looking to gain Bitcoin exposure." [Read more]
William Blair initiated coverage of Nice (NICE) with an Outperform rating and no price target. The firm believes the company can achieve a recurring revenue mix of 90% by 2025. [Read more]
H.C. Wainwright initiated coverage of Atlas Lithium (ATLX) with a Buy rating and $56 price target. The firm believes the company's Das Neves project continues to stand out as an emerging high-grade lithium deposit with strong development potential. [Read more]
Lake Street initiated coverage of Par Technology (PAR) with a Buy rating and $39 price target. Par's new management has created a multi-product, enterprise software provider tracking to 25% ARR growth and "on the brink of positive cash generation" while it has upgraded the perception of its product in the industry via acquisitions and internal development. [Read more]
SVB Securities initiated coverage of Belite Bio (BLTE) with an Outperform rating and $25 price target. The firm notes the company is currently conducting a Phase 3 trial in adolescent STGD1 patients; and Tinlarebant may work in other retinal diseases such as GA given the similarity in the underlying pathology of bisretinoids accumulation to STGD1 in addition to the similarity in the lesion pattern between the two diseases. [Read more]
