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:
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Baird upgraded Domino’s Pizza (DPZ) to Outperform from Neutral with a price target of $580, up from $530. With the shares down 7.5% from the June peak and with confidence in the fundamental outlook having risen, Baird now sees a more appealing risk/reward on the stock.
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UBS upgraded PNC Financial (PNC) to Buy from Neutral with a price target of $179, up from $165. PNC is better positioned than most to benefit from an improvement in demand, and has sufficient excess capital above minimum requirements, strong organic capital generation, and significant run off of securities related AOCI marks over the next 18 months, the analyst tells investors in a research note.
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Raymond James upgraded Gilead (GILD) to Outperform from Market Perform with a $93 price target. The analyst says the recent “outstanding” data from the PURPOSE-1 study of long acting lenacapavir in HIV pre-exposure prophylaxis and expected approval of seladelpar in primary biliary cholangitis later this year will drive the company’s revenue growth above current expectations.
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JPMorgan upgraded Ally Financial (ALLY) to Neutral from Underweight with a price target of $45, up from $39. The upgrade acknowledges that the firm’s views on Ally’s credit, net interest margin, and multiple trajectory have been “overly conservative,” the analyst says.
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BofA upgraded SolarEdge (SEDG) to Neutral from Underperform with a $29 price target. The firm believes the company’s negative overhangs are reflected in the stock’s discounted valuation.
Top 5 Downgrades:
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Wells Fargo downgraded Bumble (BMBL) to Equal Weight from Overweight with a price target of $10, down from $15. The firm says that while late the company’s April app relaunch drove a “bump” in trends, it hasn’t observed a sustained benefit.
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UBS downgraded KeyCorp (KEY) to Neutral from Buy with a price target of $15, down from $16. The analyst says multiple expansion is required for more compelling upside potential.
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Guggenheim downgraded ServiceNow (NOW) to Sell from Neutral with a $640 price target. While the company’s Q2 report on July 24 “will be fine,” the second half of 2024 presents risk to consensus subscription estimates, which presents “material risk in the stock,” currently trading at a “rich” valuation, the analyst tells investors in a research note.
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Wolfe Research downgraded JPMorgan (JPM) to Peer Perform from Outperform without a price target. With the stock’s valuation approaching all-time highs and the company more exposed to net interest income headwinds from lower rates, Wolfe recommends “taking some chips off the table.”
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Deutsche Bank downgraded Spirit Airlines (SAVE) to Sell from Hold with a price target of $2, down from $3. While full service airlines drive industry profits, low fare carriers continue to struggle despite record volumes and demand, the firm says.
Top 5 Initiations:
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Scotiabank initiated coverage of Akamai (AKAM) with an Outperform rating and $110 price target. Akamai is the “Rolls-Royce of content delivery,” but its future lies in security and edge compute, which the firm forecasts will total about 75% of the business in 2025, the analyst tells investors.
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Leerink initiated coverage of Revvity (RVTY) with an Outperform rating and $125 price target. Revvity has steadily transformed its portfolio over the last few years with a number of acquisitions and a large divestiture to now yield a mix of high growth, high margin products, the analyst tells investors.
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Mizuho initiated coverage of Ideaya Biosciences (IDYA) with an Outperform rating and $50 price target, which implies 50% upside. The firm says that while its near-term focus rests with the prospects of lead asset darovasertib, Ideaya also features four other novel candidates advancing through and into the clinic that help to diversify the company.
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Stephens resumed coverage of Canadian National (CNI) with an Equal Weight rating and $127 price target. The firm believes the growth setup for the rail sector into 2025 is improving as the truckload market tightens, but service will be important for capturing the truck-to-rail conversion.
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Barclays initiated coverage of Alphatec (ATEC) with an Overweight rating and $19 price target. Despite 30% growth in Q1 Surgical sales against a challenging 55% prior-year growth comp, concerns over the deployment of instruments and inventory in Q1 pushed the stock’s valuation below its long-term average and SMID-cap peers, creating an attractive buying opportunity, the analyst tells investors in a research note.