Tesla downgraded, Netflix 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:
Baird upgraded Netflix (NFLX) to Outperform from Neutral with a price target of $500, up from $340. The constructive stance is driven by increased confidence in the company's execution around new initiatives like advertising and paid sharing as well as its "strengthening" financial profile that should further improve investor sentiment over time, the firm says. [Read more]
MoffettNathanson upgraded Shopify (SHOP) to Outperform from Market Perform with a $76 price target. The firm expects Shopify to gain increasing traction with enterprise customers going forward and says early signs suggest the transition to the enterprise is already underway. [Read more]
Stifel upgraded Lam Research (LRCX) to Buy from Hold with a price target of $725, up from $505. The firm views Lam as a "prime" near-and-longer term beneficiary of HBM-driven DRAM growth. [Read more]
SVB Securities upgraded Neurocrine (NBIX) to Outperform from Market Perform with a price target of $125, up from $115. The firm thinks that the risk/reward at current levels is very attractive. [Read more]
BTIG upgraded AppLovin (APP) to Buy from Neutral with a $34 price target ahead of the company's earnings. The setup for the company's Software business is improving in the early stages of the Axon 2.0 product cycle as its management has highlighted an improving growth marketing environment with clients leaning back into spend following Q1 results, the firm says. [Read more]
Top 5 Downgrades:
UBS downgraded Tesla (TSLA) to Neutral from Buy with a price target of $270, up from $220. The firm continues to see Tesla globally leading the race to affordable electric and autonomous mobility, but says that on a one-year view, the stock's risk/reward looks balanced. [Read more]
Piper Sandler downgraded American Express (AXP) to Underweight from Neutral with a price target of $149, down from $172. The firm has become "increasingly concerned " that American Express will have difficulty hitting its targeted 10% revenue growth and 15% earnings growth with network volume experiencing a sizable slowdown. [Read more]
Piper Sandler downgraded Estee Lauder (EL) to Neutral from Overweight with a price target of $195, down from $265. While sentiment on Estee has weakened over the past few months, there is still see enough near-term downside risk to offset the eventual China recovery tailwinds that many are anticipating, the firm says. [Read more]
RBC Capital downgraded Twilio (TWLO) to Underperform from Sector Perform with a price target of $50, down from $55. The shares reflect "too much optimism," which creates an unfavorable risk/reward, the firm says. [Read more]
BofA downgraded Equifax (EFX) to Underperform from Neutral with a price target of $195, down from $255. Despite the fact Equifax cut its 2023 guidance by 3% at the mid-point with Q2 earnings, the firm sees further risk and thinks there's still downside as its revised $6.74 2023 EPS estimate is 3% below the revised mid-point. [Read more]
Top 5 Initiations:
William Blair initiated coverage of Moderna (MRNA) with a Market Perform rating and $136.28 fair value estimate. The firm believes the stock's current valuation is fair for a declining COVID-19 base business, the competitive vaccine landscape outside of COVID, and timing gap to Moderna's early-stage therapeutic pipeline. [Read more]
Morgan Stanley initiated coverage of Opendoor Technologies (OPEN) with an Equal Weight rating and $4.25 price target. While "constructive" on its "strong position" in iBuying, market weakness keeps the firm more balanced tactically. [Read more]
William Blair initiated coverage of Arcturus Therapeutics (ARCT) with an Outperform rating and $71 fair value estimate. The firm says Arcturus can leverage non-dilutive capital from its CSL partnership to progress its wholly owned therapeutics pipeline with current assets in ornithine transcarbamylase deficiency and cystic fibrosis, both of which will have clinical data readouts in the remainder of 2023. [Read more]
Guggenheim initiated coverage of Nuvalent (NUVL) with a Buy rating and $56 price target. The firm believes that Nuvalent's "early but compelling" and best-in-class ROS1 data for NVL-520 validates their platform and reads through positively to the company's ability to differentiate in the larger market. [Read more]
BofA initiated coverage of Vivid Seats (SEAT) with a Buy rating and $10 price target. The firm believes that Vivid, as a leading U.S. secondary ticket platform, is "positioned well for multiyear growth" despite elevated competition in the secondary ticketing market. [Read more]
