Tesla downgraded, Adobe 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:
BMO Capital upgraded Adobe (ADBE) to Outperform from Market Perform with a price target of $570, up from $500. The firm believes that Adobe can capture price/mix, as well as new users, through generative AI, adding that its recent survey feedback on Adobe Express has been positive. (Read more)
Wolfe Research upgraded Spotify (SPOT) to Outperform from Peer Perform with a $190 price target after a different analyst at the firm assumed coverage of the name. The firm sees a path for top-line acceleration, steady margin expansion, and potential for sustained upside revisions to Street estimates over the next roughly 12 months. (Read more)
Benchmark upgraded LiveRamp (RAMP) to Buy from Hold with a $33 price target. LiveRamp's upcoming off-shoring and automation cost initiatives are underappreciated and point to visible and meaningful margin expansion through FY25, the firm says. (Read more)
Loop Capital upgraded OneSpaWorld (OSW) to Buy from Hold with an unchanged $13 price target. The stock has pulled back after the partial divestment of the company's former private equity owner, but cruise line operators have cited continued outsized growth in recent investor meetings, the firm notes. (Read more)
KeyBanc upgraded Avangrid (AGR) to Sector Weight from Underweight as a few overhangs have cleared, including Avangrid having prevailed in the NECEC legal challenges and constructive rate case settlements in New York and Maine. (Read more)
Top 5 Downgrades:
Barclays downgraded Tesla (TSLA) to Equal Weight from Overweight with a price target of $260, up from $220. The stock's performance amid its recent rally has been "too sharp relative to challenging near-term fundamentals," given questions on margins and demand elasticity, the firm says. (Read more)
Susquehanna downgraded Infosys (INFY) to Negative from Neutral with a price target of $13, down from $15. While calling Infosys "among the world's great tech companies with a powerful brand built on operational excellence," the firm is concerned that some of the company's current competitive advantages may be eroding due to architectural changes. (Read more)
Rosenblatt downgraded Coherent (COHR) to Neutral from Buy with a price target of $55, up from $41. While the firm understands investors are looking for AI beneficiaries, and doesn't like to "get in the way of a good secular story," it believes the bull thesis and stock are "ahead of themselves." (Read more)
Wolfe Research downgraded Peloton (PTON) to Underperform from Peer Perform with a $6 price target after a different analyst at the firm assumed coverage of the name. Wolfe warns that the company is set to experience lower demand for longer, while expressing a lack of confidence in the management's new growth initiatives. (Read more)
Wolfe Research downgraded Match Group (MTCH) to Peer Perform from Outperform after a different analyst at the firm assumed coverage of the name. Wolfe believes the secular growth drivers in online dating are slowing down, execution still remains a question, and growth areas are relatively small to help drive sustained top-line acceleration. (Read more)
Top 5 Initiations:
JPMorgan initiated coverage of Tyler Technologies (TYL) with an Overweight rating and $472 price target. The firm likes Tyler's investment case, as the company is "a clear market leader" solely focused on the public sector, has a large install base and should see a "strong secular tailwind." (Read more)
RBC Capital initiated coverage of Avantor (AVTR) with an Outperform rating and $27 price target. Following "the ThermoFisher playbook" of combining a global Life Science Tools distribution business with a leading tools product manufacturer, Avantor is well positioned to emerge from the pandemic as a leading "one-stop shop" for the biopharma industry, the firm says. (Read more)
DA Davidson initiated coverage of Private Bancorp of America (PBAM) with a Buy rating and $39 price target. CalPrivate Bank's approach has generated strong deposit growth, premium loan yields, a strong organic growth rate with a "steadily improving profitability profile," the firm tells investors. (Read more)
DA Davidson initiated coverage of California BanCorp (CALB) with a Buy rating and $25 price target. California Bank of Commerce has successfully generated positive operating leverage and improved returns following significant investment from 2018-2020, says the firm. (Read more)
DA Davidson initiated coverage of Avidbank Holdings (AVBH) with a Buy rating and $24 price target. The company's venture-related business came under pressure in March following the failure of Silicon Valley Bank, but the firm believes Avidbank could continue to grow its efforts in the segment over time as small venture capital funds emerge. (Read more)
