Twilio upgraded, Nutrien 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:
Piper Sandler upgraded Twilio (TWLO) to Overweight from Neutral with a price target of $82, up from $75. The analyst sees material upside potential to free cash flow estimates, saying Twilio has executed better on its profitability initiatives.
Citi upgraded Qualcomm (QCOM) to Buy from Neutral with a price target of $160, up from $110. The analyst also opened a "90-day positive catalyst watch" on the shares. Citi's industry checks a CES indicated inventory replenishment in the wireless end market continues, which should benefit revenue and margins at Qualcomm.
Jefferies upgraded IFF (IFF) to Buy from Hold with a price target of $112, up from $73. The CEO change "finally positions" IFF for several years of sustainable structural improvement, the analyst tells investors in a research note.
RBC Capital upgraded Regeneron (REGN) to Outperform from Sector Perform with a price target of $1,076, up from $884. The firm has "long been enthusiastic" about the sales prospects for Dupixent and many pipeline programs, and a number of recent wins, including strong Eylea High Dose data and initial market conversion, Dupixent COPD trial successes, aflibercept biosimilar litigation victory, and good pipeline progress, should reduce pressure on Eylea's near-term commercial performance and provide increased visibility, the analyst tells investors.
Roth MKM upgraded Live Nation (LYV) to Buy from Neutral with a price target of $114, up from $92. Positive secular demand for live events and concerts positions Live Nation well for above-trend growth over the next several years, the analyst tells investors in a research note.
Top Downgrades:
Raymond James downgraded Nutrien (NTR) to Market Perform from Outperform with a price target of $65, down from $80. The firm has increasing concerns over protracted pressure in potash, and while global potash prices found support last year after a sharp/extended slide, subsequent attempts to rally have largely "fizzled" in response to a slew of supply-related headwinds, the analyst tells investors in a research note.
Needham downgraded Barnes & Noble Education (BNED) to Hold from Buy without a price target following the news that the Department of Education is beginning a negotiated rulemaking process that could alter the company's First Day Complete inclusive access program. The proposed changes, which call for a shift from requiring students to opt-out to opt-in, present a risk to the current margin trajectory of the overall business, the firm says.
RBC Capital downgraded Vulcan Materials (VMC) to Sector Perform from Outperform with a price target of $236, up from $235. RBC expects the stock will be range-bound as investors position toward names "with more cyclical torque" in the near-term.
Barclays downgraded Snowflake (SNOW) to Equal Weight from Overweight with an unchanged price target of $198. After a strong 2023, software "needs to deliver" in 2024 on the promise of artificial intelligence and recovery, says the firm.
RBC Capital downgraded Johnson Controls (JCI) to Underperform from Sector Perform with a price target of $50, down from $54. The firm cites risk to margin expansion targets, lukewarm earnings growth, potential repercussions from the cyberattack, and persistently low earnings quality for the downgrade.
Top Initiations:
JPMorgan resumed coverage of U.S. Steel (X) with a Neutral rating and $52 price target, up from $26, following a period of restriction. The analyst sees an 80% probability Nippon Steel Corporation's $55 per share bid for U.S. Steel will go through despite recent political rhetoric.
TD Cowen initiated coverage of TKO Group (TKO) with a Market Perform rating and $92 price target. The upcoming trial for the class action lawsuit brought by fighters who competed in the UFC is an "underappreciated risk catalyst that warrants investor focus," the analyst tells investors.
Mizuho initiated coverage of RPM International (RPM) with a Buy rating and $128 price target. RPM doesn't participate in auto maker or house paint, which have higher cyclical risks from elevated mortgage and auto loan interest rates, the analyst tells investors in a research note.
