Etsy upgrade, AMD downgrade and AFRM coverage initiation among today's top calls on Wall Street
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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:
KeyBanc analyst Edward Yruma upgraded Etsy (ETSY) to Overweight from Sector Weight with a $200 price target. The analyst believes Etsy has some of the most compelling long-term secular growth opportunities in his coverage and that management set guidance reasonably for Q4.
KeyBanc analyst Edward Yruma upgraded Vroom (VRM) to Overweight from Sector Weight with a $13 price target. The analyst notes that Vroom trades at an 11-times multiple point discount on 2022 EV/gross profit, and he believes the acquisition of United Auto Credit will materially increase the addressable market.
Oppenheimer analyst Brian Schwartz upgraded UiPath (PATH) to Outperform from Perform with a $56 price target. The analyst believes UiPath as the RPA market leader should benefit from a strong top-line driver with good business efficiency tools demand this year.
BMO Capital analyst Evan Seigerman upgraded Vertex Pharmaceuticals (VRTX) to Outperform from Market Perform with a price target of $274, up from $202, ahead of the AbbVie (ABBV) cystic fibrosis data readout given his "increasingly positive outlook and the recent encouraging results" for VX-147.
Exane BNP Paribas analyst Robert Joynson upgraded UPS (UPS) to Neutral from Underperform with a $191 price target.
Top 5 Downgrades:
Piper Sandler analyst Harsh Kumar downgraded AMD (AMD) to Neutral from Overweight with a price target of $130, down from $140. The analyst cited concerns about a slowdown in the PC market during 2022, the "earnings and growth headwind" from closing the Xilinx deal, and the "broader market dynamics around high-multiple, high-growth technology stocks.
KeyBanc analyst Edward Yruma downgraded Walmart (WMT) to Sector Weight from Overweight. The analyst believes that the lack of stimulus tailwinds and continued inflationary pressure may disproportionately impact Walmart's "middle of the middle" U.S. consumer near-term.
KeyBanc downgraded WW (WW) to Underweight from Sector Weight with a $10 price target. The analyst thinks the move to a more digitally focused platform may drive near-term disruption, and his checks and Key First Look Data point to a rocky start to the key January start period.
Loop Capital analyst Laura Champine downgraded Burlington Stores (BURL) to Sell from Hold with a price target of $190, down from $255. The analyst warns that inflation and reduced stimulus may lead to reductions in consensus estimates, as those factors disproportionately impact the company's customer base.
Jefferies analyst Philippe Houchois downgraded Ford (F) to Hold from Buy with a price target of $25, up from $20. The analyst sees limited scope for positive surprises from Ford.
Top 5 Coverage Initiations:
Loop Capital analyst Hal Goetsch initiated coverage of Affirm (AFRM) with a Hold rating and $72 price target. The analyst is positive on the company, which he sees as operating "one of the more formidable and durable fintech platforms that have emerged in the last few years."
Berenberg analyst Keegan Carl initiated coverage of Gaming and Leisure Properties (GLPI) with a Buy rating and $54 price target. The company's focus on the regional gaming space offers less-volatile exposure to the gaming industry compared to destination locations, contended Carl, who also argues that performance of its largest tenant, Penn National Gaming (PENN), will be beneficial long-term.
UBS analyst John Lovallo initiated coverage of Fortune Brands (FBHS) with a Buy rating and $130 price target. The company should benefit from lower copper prices, the analyst told investors in a research note.
UBS analyst John Lovallo initiated coverage of Lennar (LEN), KB Home (KBH) and Toll Brothers (TOL) with Buy ratings. The analyst said that builder stocks could "spring" this Spring, with average homebuilder P/E multiple already appearing to reflect downward revisions to estimates, rising interest rates, and a potential sharp decline in housing activity.
RBC Capital analyst Ken Herbert initiated coverage of Maxar Technologies (MAXR) with an Outperform rating and $42 price target. Following multiple delays on the launch of its WorldView Legion satellite constellation, the expected 2022 launch of the six-satellite constellation will be a positive catalyst, the analyst contended.