Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Sonoco (SON) downgraded to Sell from Neutral at Goldman Sachs with analyst Brian Maguire citing valuation. 2. Occidental Petroleum (OXY) downgraded to Equal Weight from Overweight at Morgan Stanley with analyst Devin McDermott saying he believes covering the 2020 dividend at current oil prices will require meaningful capital expenditure cuts, even though the Anadarko (APC) deal looks accretive to cash flow. 3. International Paper (IP) downgraded to Equal Weight from Overweight at Stephens with analyst Mark Connelly saying RISI decided to cut the price of containerboard $10 "just three days after investors breathed a sigh of relief on encouraging supply-demand fundamentals." 4. Shopify (SHOP) downgraded to Neutral from Buy at Roth Capital with analyst Darren Aftahi saying he remains positive on its underlying business prospects following the company's Unite conference and investor day but not on the stock's valuation, which has increased in the wake of the event. 5. Spotify (SPOT) downgraded to Underperform from In Line at Evercore ISI with analyst Kevin Rippey saying the recent rally in the stock "reflects an overly optimistic view" on the company's gross margin path and potential label negotiation outcomes. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

Loop Capital analyst Alan Gould raised the firm's price target on Spotify to $300 from $250 and keeps a Hold rating on the shares. The company's Q1 results demonstrated "impressive profit and cash flow growth", though there was a small miss on ad-supported subscriber metric, partially due to some pull forward in Q4 and an over-correction on marketing spend, the analyst tells investors in a research note. Audiobooks are also a drag on profits, but Podcasting should be profitable for the year, though it contributed a small loss to Spotify during the quarter, the firm added.

Guggenheim analyst Michael Morris raised the firm's price target on Spotify to $350 from $290 and keeps a Buy rating on the shares after the company reported Q1 results that were highlighted by the company's largest ever operating income quarter and expanding gross margin. The company's Q2 profitability guidance was "similarly strong," the analyst added in an earnings recap note.

Wells Fargo raised the firm's price target on Spotify to $400 from $310 and keeps an Overweight rating on the shares. A year ago, Spotify's long-term profitability was in question, the firm notes. Now, it's a question of "how good?" margins can get. Wells believes strong profit growth supports its 41-times EV/EBITDA multiple.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here

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.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here

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."