Twilio upgraded, Sealed Air 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 5 Upgrades:
Argus upgraded Twilio (TWLO) to Buy from Hold with a $72 price target. The company is positioned for revenue and adjusted earnings growth as its core Communications business revives and as its Data & Applications business recovers, the analyst tells investors in a research note. [read more]
Evercore ISI upgraded Pinnacle West (PNW) to In Line from Underperform with an unchanged price target of $78. The 9.55% allowed return on equity that Tucson was granted bodes well for Pinnacle and foreshadows a situation where the company could be granted an allowed ROE in the 9.60%-9.75% range, the analyst says. [read more]
TD Cowen upgraded Cogent Communications (CCOI) to Outperform from Market Perform with a price target of $85, up from $65. The company has an "underappreciated opportunity" to capture a portion of the lucrative $2B-plus wavelength market, the firm says. [read more]
Exane BNP Paribas upgraded Rivian Automotive (RIVN) to Outperform from Neutral with a $30 price target. [read more]
Credit Suisse upgraded Himax (HIMX) to Outperform from Neutral with a price target of $8, up from $7. Q2 EPS were ahead of expectations and although Q3 was guided to be "softer," there is "recovery in sight" with management guiding for second half sales to be better than the first half, which suggests Q3 is the trough and Q4 should rebound on a sequential basis, the analyst tells investors. [read more]
Top 5 Downgrades:
UBS downgraded Sealed Air (SEE) to Neutral from Buy with a price target of $44, down from $54. The analyst believes the company's return to growth will take longer to play out. [read more]
Raymond James downgraded Medical Properties Trust (MPW) to Underperform from Strong Buy without a price target. Improving operator fundamentals "have been the lone positive" in recent quarters, but have been more than overshadowed by "growing questions" surrounding management communication, credibility, disclosure transparency, operator health, corporate governance, leverage, and dividend sustainability, the analyst tells investors in a research note. [read more] Medical Properties Trust also was downgraded to Underperform from Neutral at BofA. [read more]
Wolfe Research downgraded Forward Air (FWRD) to Underperform from Peer Perform with an $80 price target after the company announced the $3.2B acquisition of Omni Logistics. Forward expects strong cash earnings accretion by year two, but material earnings dilution in 2024 is likely along with a "big increase" in balance sheet leverage, the analyst says. [read more] Forward was also downgraded at Raymond James [read more] and Stifel [read more].
BofA double downgraded Triumph Group (TGI) to Underperform from Buy with a price target of $8, down from $19. The portfolio turnaround is now complete, but investors are waiting for the financial turnaround, which the firm argues is "not feasible until we see a significant operational turnaround." [read more]
Oppenheimer downgraded Marinus Pharmaceuticals (MRNS) to Perform from Outperform with a price target of $9, down from $14. Oppenheimer's cautious view is based on repeated delays to topline results since 1H22, the latest delay following high confidence expressed around interim timing and potentially positive results, significantly higher screen failure rates, and slower-than-expected enrollment despite the relaxed requirement for baseline seizure burden. [read more]
Top 5 Initiations:
JPMorgan initiated coverage of MSG Entertainment (MSGE) with a Neutral rating and $38 price target. The firm expects the company to benefit from structural tailwinds across the concerts industry, but says these opportunities come with execution risk. [read more]
Guggenheim initiated coverage of CymaBay (CBAY) with a Buy rating and $20 price target. CymaBay has generated a comprehensive dataset for lead asset seladelpar in primary biliary cholangitis, or PBC, that support a strong clinical profile and give it the "potential for PBC market leadership," the analyst tells investors. [read more]
William Blair initiated coverage of Hippo (HIPO) with a Market Perform rating and no price target. The company has good growth story and should benefit from the homeowners insurance industry expansion, but "more consistent resilience" against the risks that are facing the industry needs to be displayed before confidence can be had in the stock's ability to outperform, the analyst tells investors in a research note. [read more]
Piper Sandler initiated coverage of Procept BioRobotics (PRCT) with an Overweight rating and $42 price target. The company has developed and commercialized its AquaBeam robotic system that "addresses many of the shortcomings" of alternative surgical interventions in benign prostatic hyperplasia through the use of aquablation therapy, the analyst tells investors in a research note. [read more]
JPMorgan initiated coverage of Expeditors (EXPD) with an Underweight rating and $110 price target. Ocean and airfreight rates are well below the pandemic peak, but additional capacity and competition will create a deeper earnings trough in 2024 than expected, says the analyst. [read more]
