Tesla downgraded, Anheuser-Busch 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:
Bernstein upgraded Kellogg (K) to Market Perform from Underperform with a $62 price target. Kellogg's relative underperformance and "cheap current valuation" are likely a product of reduced investor interest in the stock post the company's spinoff announcement, the firm says. (Read more)
Deutsche Bank upgraded AB InBev (BUD) to Buy from Hold with a price target of EUR 60, up from EUR 59. The firm believes recent underperformance implies "a permanent reduction" in Budweiser's U.S. business, though its proprietary survey data suggests these headwinds are likely to fade. (Read more)
Oppenheimer upgraded DiaMedica Therapeutics (DMAC) to Outperform from Perform with a $7 price target after the company announced that the clinical hold on its ReMEDy2 Phase 2/3 trial has been removed. (Read more)
BofA upgraded XP Inc. (XP) to Buy from Neutral as the firm believes the company's earnings are poised to benefit from an easing cycle. (Read more)
Mizuho upgraded Agree Realty (ADC) to Buy from Neutral with an unchanged price target of $70. The firm believes the recent underperformance to peers offers "an attractive entry point" for investors looking to add exposure to a REIT with "high investment-grade tenancy, formidable liquidity, and above-average growth potential." (Read more)
Top 5 Downgrades:
Morgan Stanley downgraded Tesla (TSLA) to Equal Weight from Overweight with a price target of $250, up from $200. The firm views Tesla as an AI beneficiary and an auto company, but contends that high expectations on the former has brought the stock to "a fair valuation." (Read more)
Piper Sandler downgraded DigitalOcean (DOCN) to Underweight from Neutral with a $35 price target, citing high SMB exposure, a likely top-line cut coming, web-traffic, job postings and ARR build, friction between Cloudways and other MSPs, waning portfolio competitiveness, questionable capital usage, and stretched valuation. (Read more)
Morgan Stanley downgraded Alcoa (AA) to Underweight from Equal Weight with a price target of $33, down from $43. The firm sees "material downside" to consensus estimates for Alcoa and believes the stock will face downward pressure and underperform as negative earnings revisions materialize. (Read more)
Baird downgraded Mercury Systems (MRCY) to Neutral from Outperform with a price target of $40, down from $48. The firm views the strategic alternatives review as unlikely to result in a significant premium as buying interest likely reflects the new financing environment, yielding lower offers than previously expected. (Read more)
BofA downgraded Dow Inc. (DOW) to Underperform from Neutral with a price target of $55, down from $64. The firm notes that economic momentum is not materializing and with a lack of economic momentum, feedstock deflation has set in. (Read more)
Top 5 Initiations:
DA Davidson initiated coverage of Caterpillar (CAT) with a Neutral rating and $263 price target. While the firm views Caterpillar as "among the highest-quality ideas in Machinery," the "mini-run" the stock has seen this month keeps it from a favorable recommendation at this point in time as it awaits "the right entry point."
(Read more)B. Riley initiated coverage of Expedia (EXPE) with a Buy rating and $160 price target. The firm is positive on the company's leading position across key markets and improved execution. (Read more)
B. Riley initiated coverage of TripAdvisor (TRIP) with a Buy rating and $25 price target. The firm's view reflects a stable core segment, which it believes will continue to generate meaningful free cash flow for "the foreseeable future," along with a forecast for "robust growth" in Viator. (Read more)
Roth MKM initiated coverage of Bunge (BG) with a Buy rating and $138 price target. Thanks to the company's asset portfolio optimization in recent years, there should be less relative financial performance volatility going forward, the firm tells investors in a research note. (Read more)
Deutsche Bank initiated coverage of Iridium (IRDM) with a Hold rating and $61 price target. While Deutsche contends that Iridium looks well positioned to take the leading position in narrow and mid-band communications, or L-band, and sees optionality in the direct-to-device opportunity with Iridium joining forces with Qualcomm (QCOM), the firm argues that the current valuation is "fair" with the stock already trading in-line with high quality fiber/tower comps. (Read more)
