Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. IBM (IBM) downgraded to In Line from Outperform at Evercore ISI with analyst Amit Daryanani saying he sees macro headwinds combined with a difficult 1H20 setup that warrants incremental caution especially given the current net leverage. 2. Advance Auto Parts (AAP) downgraded to Neutral from Overweight at JPMorgan with analyst Christopher Horvers saying the company's key sales drivers heading into 2020 appear to be "more incrementally negative" than positive due to weather, less inflation and slower GDP growth. 3. Spotify (SPOT) downgraded to Underperform from In Line at Evercore ISI with analyst Benjamin Black saying the risk/reward with the shares back near $160 has "tilted back in favor of rewarding shorts." 4. Dine Brands (DIN) downgraded to Hold from Buy at Deutsche Bank with analyst Brian Mullan citing valuation. 5. Avnet (AVT) downgraded to Underweight from Equal Weight at Wells Fargo with analyst Joseph Quatrochi saying despite some suppliers calling a bottom in the semi cycle, distributors have remained cautious on a recovery given macro uncertainties and lack of forward visibility. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

BTIG downgraded HashiCorp (HCP) to Neutral from Buy without a price target. The analyst sees a balanced risk/reward after the stock's recent run following takeover speculation. The firm believes the potential takeover by IBM (IBM) has a "lot of merits." HashiCorp is a good strategic asset with strong product capabilities, and deal synergies with a large acquirer such as IBM would be substantial, the analyst tells investors in a research note. Given there is still some uncertainty on a deal being consummated and a typical closing process in the 6-9 month range, BTIG sees limited incremental upside to shares in the near term.

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IBM (IBM) is nearing an acquisition of HashiCorp (HCP) and deal could come together in the coming days, Lauren Thomas and Laura Cooper of Wall Street Journal report, citing people familiar with the matter. A deal for HashiCorp would likely command a premium above where the stock is currently trading, the Journal says. Shares of HashiCorp jumped 7% to $26.37 following the report before halting for volatility. IBM is down 66c to $181.28 in afternoon trade. Reference Link

Evercore ISI raised the firm's price target on Spotify to $340 from $285 and keeps an Outperform rating on the shares following what the firm describes as "Beat & Raise Q1 EPS results." The "Big Story" this quarter was profitability, with gross margin and operating income both at record highs, says the analyst, who is removing the stock from the firm's "Tactical Underperform" list. The list inclusion was based on risks to Q1 operating income and to the Q2 MAU outlook and while "both of these risks materialized," they were "utterly swamped by the major Gross Margin inflection point," the analyst tells investors.

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Check out this morning's top movers from around Wall Street, compiled by The Fly. UP AFTER EARNINGS... To see the rest of the story go to thefly.com. See Story Here

Reports Q1 ad supported MAUs 388M vs. 317M last year.

Reports Q1 MAUs 615M vs. 515M last year. "Overall, we are encouraged by the strong start to the year and view the business as well positioned to deliver on the goals outlined at our 2022 Investor Day."

Jefferies analyst Brent Thill lowered the firm's price target on IBM to $210 from $215 and keeps a Hold rating on the shares. IBM remains a "show me story" as the company looks to reposition itself around a software-led strategy, the analyst tells investors in a research note. The firm likes the company's initiatives to bolster its software growth and profitability profile, but thinks better execution on the new go-to-market strategy and further investments in the organic engine are necessary to drive long-term software growth higher. Until signs of a re-energized software business are seen, IBM's risk/reward "seems balanced," Jefferies contends.