UPS downgraded, Eli Lilly 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:
JPMorgan upgraded DraftKings (DKNG) to Neutral from Underweight with an unchanged price target of $26. The shares are down in response to Penn Entertainment's (PENN) agreement with ESPN (DIS), which is causing a negative reaction on increased potential competition and promotional pressure, the firm says. [Read more]
Jefferies upgraded Eli Lilly (LLY) to Buy from Hold with $615 price target, up from $408 prior. The firm cited two positive GLP-1 data points, with SELECT trial exceeding the firm's base case and its Mounjaro sales exceeding consensus estimates by 28%. [Read more]
Barclays upgraded Dish (DISH) to Overweight from Equal Weight with a price target of $10, up from $5. The firm sees the Echostar (SATS) deal and any progress on the T-Mobile (TMUS) deal to buy 800MHz spectrum are likely the bigger catalysts for the stock. [Read more]
Roth MKM upgraded LivePerson (LPSN) to Buy from Neutral with an unchanged price target of $6. The company's revenue results for Q2 were "fair" given weak its guidance, while adjusted EBITDA far exceeded forecasts on severe cost cuts, the firm notes. [Read more]
Wells Fargo upgraded Chart Industries (GTLS) to Overweight from Equal Weight with a price target of $224, up from $162. The firm believes Chart Industries remains well-positioned for the Energy Transition with deleveraging a supporting event. [Read more]
Top 5 Downgrades:
Loop Capital downgraded UPS (UPS) to Hold from Buy with a price target of $195, down from $210. The company's Q2 earnings beat was "modest" despite softer than expected macro environment and more volume diversions than expected due to the Teamsters contract brinkmanship, the firm says. [Read more] UBS also downgraded UPS to Neutral from Buy with a price target of $185, down from $198. [Read more]
Daiwa downgraded Qualcomm (QCOM) to Outperform from Buy with an unchanged price target of $125 following last week's Q2 results. [Read more]
Guggenheim downgraded Doximity (DOCS) to Neutral from Buy and removed the firm's previous price target on the shares on "the heels of another disappointing guide." [Read more] Needham also downgraded Doximity to Hold from Buy on mixed Q1 results. [Read more]
Stifel downgraded Datadog (DDOG) to Hold from Buy with a price target of $90, down from $115. With Datadog reporting its slimmest sales upside quarter ever and management highlighting a meaningful quarter-over-quarter decline in usage growth that runs counter to what the hyperscalers and other consumption names have said the last few months, the firm wonders if something company-specific is not occurring within the installed base. [Read more]
BTIG downgraded WeWork (WE) to Neutral from Buy after its disappointing Q2 results. WeWork also announced the departure of three more Board members, and given all of these factors, the firm is no longer confident that the company can reach profitability without the need to raise incremental capital. [Read more]
Top 5 Initiations:
Ladenburg initiated coverage of Southern Company (SO) with a Buy rating and $72 price target. The completion of the Vogtle nuclear plant and its inclusion in Georgia Power rate base "should significantly de-risk" Southern's business and add materially to its earnings and cash flow, the firm says. [Read more]
H.C. Wainwright initiated coverage of Phathom Pharmaceuticals (PHAT) with a Buy rating and $28 price target. The firm likes the company's lead asset vonoprazan in gastrointestinal disease. [Read more]
Stifel initiated coverage of Rapt Therapeutics (RAPT) with a Buy rating and $40 price target. Proof-of-concept data from RPT193 in Atopic Dermatitis, or AD, are "supportive of its potential to be the first non-JAK oral in the growing AD market," the firm says. [Read more]
Mirati Therapeutics' (MRTX) coverage was assumed at Piper Sandler by a different analyst, who kept an Overweight rating and $45 price target. The firm says Krazati continues to gain traction while the company's pipelines opportunities are starting to crystalize. [Read more]
Maxim initiated coverage of Aytu BioPharma (AYTU) with a Buy rating and $5 price target. The company's Adzenys XR-ODT and Cotempla XR-ODT for treating ADHD are seeing a tailwind of growth due to an ongoing shortage of stimulants, the firm notes. [Read more]
