Uber upgraded, Fortinet 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:
KeyBanc upgraded Uber (UBER) to Overweight from Sector Weight with a $60 price target ahead of the company's earnings report on November 7. The analyst believes expense discipline at Uber should continue driving an EBITDA and free cash flow inflection, while advertising "provides a lever to keep prices low to drive volumes."
Raymond James upgraded Regeneron Pharmaceuticals (REGN) to Outperform from Market Perform with a $950 price target. The analyst sees positive momentum into 2024 following the company's Q3 report.
Guggenheim upgraded Confluent (CFLT) to Buy from Neutral with a $23 price target. The analyst says the company is "structurally sound and undervalued" following the more than 40% post-earnings selloff. Wolfe Research also upgraded shares to Outperform from Peer Perform.
Deutsche Bank upgraded Molson Coors (TAP) to Hold from Sell with a price target of $58, up from $57. While investor concerns around the company's ability to comp fiscal 2023's "robust" growth and the potential for margin degradation in a more intense competitive environment in fiscal 2024 remain "valid and reasonable," these risks are now adequately discounted in the stock's current valuation.
Wells Fargo upgraded Omnicell (OMCL) to Equal Weight from Underweight with a price target of $28, down from $39, post the Q3 report. The analyst still sees risks to the firm's lowered estimates, but upgraded the shares, saying it is difficult to expect material underperformance over the near- to medium-term given Omnicell's announced cost cuts, potential for bookings growth, and the stock's valuation multiple contraction "mostly in the rear-view."
Top Downgrades:
JPMorgan downgraded Fortinet (FTNT) to Neutral from Overweight with a price target of $52, down from $67. Fortinet reported billings and revenue under expectations and cut full year billings and revenue guidance for the second quarter in a row, the analyst tells investors in a research note. Fortinet was also downgraded at Stifel, Cantor Fitzgerald, Evercore ISI, William Blair, and Oppenheimer.
KeyBanc downgraded Bill (BILL) to Sector Weight from Overweight without a price target. The company revised fiscal 2024 guidance lower as headwinds to payment volume picked up in late Q3 and persisted through October, the firm says.
Berenberg downgraded Estee Lauder (EL) to Hold from Buy with a price target of $118, down from $224. The drag from destocking appears to have escalated in fiscal Q1 and headwinds are now expected to persist for longer, the analyst tells investors in a research note.
RBC Capital downgraded Sangamo Therapeutics (SGMO) to Sector Perform from Outperform with a price target of $2, down from $6. The company is going into cash preservation mode by reducing the workforce by 40%, shutting down Brisbane headquarters, pausing late study pipeline and releasing its CSO and COO, the analyst says.
BTIG downgraded Omnicell (OMCL) to Neutral from Buy without a price target post the Q3 report. The analyst cites a "consistent lack of visibility" and the turnover of senior leadership in the past few months for the downgrade. Several large publicly traded hospital companies have reported improving volumes, and better inflation and labor trends, but Omnicell's clients continue to delay purchases, the analyst tells investors in a research note. The firm says the company is well along the XT upgrade cycle, and it worries that the market itself is facing slowing growth.
Top Initiations:
BMO Capital reinstated coverage of Coeur Mining (CDE) with a Market Perform rating and $2.75 price target. The analyst sees value in the shares due to the company's production growth profile at Rochester in the near term and Silvertip longer term.
RBC Capital initiated coverage of Veralto (VLTO) with a Sector Perform rating and $78 price target. The "highly-anticipated" Danaher (DHR) spinout has 23% EBITDA margins, 57% razor/razor blade recurring revenues and "also ranks as an elite Prime according to our Investment Framework," the analyst tells investors.
