Chipotle upgrade, Disney downgrade and Honeywell coverage initiation among today's top calls on Wall Street Institutional investors and professional traders rely on The Fly to learn which companies the best analysts on Wall Street are saying to buy and sell.
Research analysts at Wall Street's largest banks issue recommendations on whether a stock should be bought, held, or sold. The Fly's team of financial market experts scours hundreds of research notes daily to uncover the best trading ideas. Check out today's top analyst calls from around Wall Street, compiled by The Fly.
Top 5 Upgrades:
- Morgan Stanley analyst John Glass upgraded Chipotle Mexican Grill (CMG) to Overweight from Equal Weight with a price target of $1,920, down from $1,929. The shares are off 20% from highs and but the long-term positive view on the company's fundamentals is unchanged, Glass tells investors in a research note.
- BMO Capital analyst Joel Jackson upgraded Mosaic (MOS) to Outperform from Market Perform with a price target of $50, up from $37. The analyst is concerned that Belarusian potash is about to "become stressed" and that investors will bid up the share prices of potash producers, especially as the agriculture dynamic "remains robust."
- Cowen analyst Karl Ackerman upgraded NetApp (NTAP) to Outperform from Market Perform with a price target of $116, up from $95. The analyst believes NetApp is transitioning from a period of secular declines toward a multi-year period of growth.
- Evercore ISI analyst David Palmer upgraded Texas Roadhouse (TXRH) to Outperform from In Line with a $110 price target, citing his view that it has underappreciated leverage to a recovery of on-premise dining and he sees a road to normalized restaurant margin in 2023.
- Raymond James analyst Adam Tindle upgraded Check Point (CHKP) to Outperform from Market Perform with a $140 price target. Recent channel checks suggest strong near-term demand in both emerging subscription-based technology and net new customer growth, Tindle tells investors.
Top 5 Downgrades:
- Guggenheim analyst Michael Morris downgraded Disney (DIS) to Neutral from Buy with a price target of $165, down from $205, to reflect his updated view of the pace of profit growth at the company's direct-to-consumer and parks businesses. While he believes the "worst of the overall bear-case narrative is understood," the company's disclosure that total 2022 programming spend would increase by as much as $8B, or 32%, "feels under-appreciated in a consensus outlook," argues Morris.
- RBC Capital analyst Joseph Spak downgraded Ford (F) to Sector Perform from Outperform with a price target of $26, up from $21. While he remains positive on Ford's ability to make "new auto" progress, he sees less near-term stock upside, with added concerns on how shares would react if pricing rolled later this year and if Rivian (RIVN) sold down.
- Morgan Stanley analyst John Glass downgraded Domino's Pizza (DPZ) to Equal Weight from Overweight with a price target of $535, down from $541. The analyst cites valuation for the downgrade. Domino's has a "superior" business model but it is hard to argue for further multiple expansion with more normalized comps likely in a post-COVID environment, Glass tells investors.
- KeyBanc analyst Josh Beck downgraded PagSeguro Digital (PAGS) to Sector Weight from Overweight without a price target. Despite his optimism around the management team and general strategy, the analyst looks for improved visibility into scaling PagBank consumer accounts.
- JPMorgan analyst Christopher Horvers downgraded BJ's Wholesale (BJ) to Underweight from Overweight with a price target of $60, down from $78. The analyst also removed the shares from the firm's Analyst Focus List. The analyst is concerned about the low end consumer "anniversarying stimulus" as well as accelerating food inflation over the year.
Top 5 Coverage Initiations:
- Cantor Fitzgerald analyst Andres Sheppard initiated coverage of Ree Automotive (REE) with an Overweight rating and $9 price target. The analyst believes the company has an attractive valuation and will benefit from its "highly-customizable" product offering that is agnostic to fuel types, a fast commercialization timeline, a "capex-light" business model, and a growing electric vehicle market.
- Berenberg analyst Philip Buller initiated coverage of Honeywell (HON) with a Hold rating and $230 price target. Honeywell is an "exceptionally well-run company" and is positively aligned towards several attractive themes, including the commercial aerospace recovery, building efficiency, warehouse automation, industrial automation and chemical technologies, Buller tells investors in a research note. However, the analyst struggles to justify a higher share price at this time.
- H.C. Wainwright analyst Michael King initiated coverage of Vincerx Pharma (VINC) with a Buy rating and $25 price target. Vincerx "has all the elements for success:" a top management team with a proven record in oncology, an "exciting" clinical asset with multiple pathways to registration, and "significant" funding to drive progress through key value inflection points without needing to recur to the capital markets, King tells investors.
- Cowen analyst John Blackledge initiated coverage of AdTheorent (ADTH) with an Outperform rating and $8 price target. The company's privacy-forward demand-side platform utilizes advanced machine learning techniques to identify and bid on impressions with a high likelihood of leading to advertiser-defined conversion events, Blackledge tells investors.
- Baird analyst Justin Hauke initiated coverage of Custom Truck One Source (CTOS) with an Outperform rating and $11 price target. The company offers a "one-stop" platform for contractors, particularly in the electric T&D and infrastructure markets, while its attractive rental unit economic coupled with scale benefits from the Nesco merger offer Custom Truck runway for strong EBITDA growth over the next several years, Hauke tells investors.
Symbols:
CMG - $1,506.11 /
-48.89 (-3.14%)
MOS NTAP TXRH CHKP DIS F RIVN DPZ PAGS BJ REE HON VINC ADTH CTOS Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street