WW upgraded, Macy's 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:
Craig-Hallum upgraded WW (WW) to Hold from Sell with a price target of $10, up from $4. Given the potential new GLP-1 medications like Ozempic and Mounjaro have to transform the treatment of obesity and related conditions, GLP-1s are starting to look like healthcare's artificial-intelligence moment, and as it relates to WW, the opportunity could be significant, the firm says.
HSBC upgraded DocuSign (DOCU) to Hold from Reduce with an unchanged price target of $42. The firm says DocuSign is making progress in stabilizing revenue and that it is "incrementally positive on the new risk/reward."
HSBC upgraded Johnson Controls (JCI) to Buy from Hold with a price target of $69, up from $58. The stock's recent underperformance provides a good entry point to a business with exposure to decarbonization and sustainable buildings, the firm says.
Piper Sandler upgraded Guardant Health (GH) to Overweight from Neutral with a $40 price target. The firm is a buyer of Guardant Health shares given recent weakness mixed with its industry data that suggests the company's position in profiling should help it sustain about 20% growth for a number of years.
Evercore ISI upgraded XPO, Inc (XPO) to Outperform from In Line with a price target of $79, up from $72. The company's operational turnaround is unfolding "just as all networks begin to benefit from accelerating pricing," the firm tells investors.
Top 5 Downgrades:
Gordon Haskett downgraded Macy's (M) to Hold from Buy with a $13 price target. Beyond the structural challenges the department store vertical faces, the group has one of the highest concentrations of discretionary spend in the firm's retail coverage universe, as well as a material EBIT contribution from credit income, the firm says.
Gordon Haskett downgraded Burlington Stores (BURL) to Hold from Buy with a $137 price target. While the off-price retail space has been a "bright spot over the past couple of quarters," Burlington's performance has lagged its peer group, the firm tells investors.
Gordon Haskett downgraded Tractor Supply (TSCO) to Accumulate from Buy with a $215 price target. While still "big fans of the Tractor Supply story," the firm thinks there is incremental risk to its Q3 same-store sales growth estimate of 2.0% and argues that Street estimates for FY24 "look too high."
UBS downgraded Wallbox (WBX) to Neutral from Buy with a price target of $3, down from $5. The firm views the shares as appropriately priced and sees the risk/reward as balanced.
Morgan Stanley downgraded Zions Bancorp (ZION) to Underweight from Equal Weight with a price target of $32, up from $27. After a 70% rally from the May lows, Zions is now trading in-line with peers after having consistently been at a discount for the majority of 2023, the firm tells investors in a research note. Morgan Stanley also downgraded Valley National (VLY) to Underweight from Equal Weight with a price target of $8.50, up from $8.
Top 5 Initiations:
Raymond James resumed coverage of Roku (ROKU) with a Market Perform rating and no price target. While the firm sees "a number of fundamental factors working in Roku's favor," it views near-term expectations as "reasonable" given the choppiness in the ad market and forecasts EBITDA losses until the company's cost structure rationalization "kicks in next year."
Goldman Sachs resumed coverage of Public Storage (PSA) with a Buy rating and $310 price target. The firm expects earnings growth to stabilize, which should be a positive catalyst for each stock, "especially given their current historically low multiples."
Morgan Stanley initiated coverage of Hasbro (HAS) with an Overweight rating and $84 price target. The firm expects upward earnings revisions as new management executes on its strategic plan to simplify Hasbro's business, cut costs, invest in innovation, and drive core topline growth. Morgan Stanley also started coverage of Mattel (MAT) with an Overweight rating and $27 price target.
UBS initiated coverage of e.l.f. Beauty (ELF) with a Buy rating and $138 price target, implying 26% upside from current levels. The firm believes e.l.f. can drive 47% and 20% organic growth in fiscal 2024 and 2025, respectively, driven by innovation-led share gains across the mass beauty industry.
UBS initiated coverage of Teledyne (TDY) with a Buy rating and $495 price target. Teledyne is a leading provider of specialty sensors and instrumentation products, and appears to be misunderstood by investors, the firm tells investors in a research note.
