Five Below upgrade, DraftKings downgrade and SoFi Technologies 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:
UBS analyst Michael Lasser upgraded Five Below (FIVE) to Buy from Neutral with a price target of $200, down from $215. The recent pullback in the stock has created an "attractive" buying opportunity as shares now trade at 25-times his 2022 earnings per share estimate versus its 35-times average next-twelve-months earnings multiple over the last five years.
Wedbush analyst Tom Nikic upgraded Carter's (CRI) to Outperform from Neutral with a $108 price target. The analyst believes that Carter's is a compelling "defensive" play - staple-like category with minimal exposure to Europe - with improving demographic trends.
Morgan Stanley analyst Keith Weiss upgraded Palantir Technologies (PLTR) to Equal Weight from Underweight with a price target of $16, down from $24. The analyst cited the company's "well positioned" government business, potential for its commercial unit to accelerate on sales investments, and "strong" unit economics for the upgrade.
Brookline analyst Leah Rush Cann upgraded Intellia Therapeutics (NTLA) to Buy from Hold with a $91 price target. The patent risk is unchanged, but the valuation has become attractive, Rush Cann told investors.
Piper Sandler analyst Charles Neivert upgraded Nutrien (NTR) to Overweight from Neutral with a price target of $112, up from $87. The analyst made "sizable increases" to 2022 and 2023 EBITDA estimates for chemicals companies based in part on the issues which will stem from the Russia/Ukraine conflict and the likelihood that the impact will have lasting effects well beyond the end of that situation.
Top 5 Downgrades:
Argus analyst John Staszak downgraded DraftKings (DKNG) to Hold from Buy. The company is facing increasing competition from MGM (MGM) and Wynn (WYNN) as they expand their online sports betting operations, the analyst told investors in a research note.
Seaport Global analyst Daniel McKenzie downgraded American Airlines (AAL) to Neutral from Buy and withdrew his previous price target on the shares, citing "energy market chaos" tied to the Russian/Ukraine war and calling it a "weaker balance sheet story."
Wedbush analyst Tom Nikic downgraded Ralph Lauren (RL) to Neutral from Outperform with a price target of $127, down from $150. The analyst cited elevated exposure to Europe. Leading up to COVID, Ralph Lauren's European business grew at a 3% CAGR between 2016 and 2019, but the rest of the company shrunk at a -5% CAGR.
Wedbush analyst Tom Nikic downgraded PVH Corp. (PVH) to Neutral from Outperform with a price target of $85, down from $140. The analyst cited the highest exposure to Europe, presenting meaningful fundamental risk in the near-term.
JPMorgan analyst Jared Dinges downgraded Philip Morris (PM) to Neutral from Overweight with a price target of $110, down from $130. The analyst believes the company's Next Generation Products guidance is at risk.
Top 5 Coverage Initiations:
Piper Sandler analyst Kevin Barker initiated coverage of SoFi Technologies (SOFI) with a Neutral rating and $12 price target. The company is "very well positioned to become a major disruptor" within the financial services industry due to its simplistic user interface and wholistic product offering, Barker contends.
Goldman Sachs analyst Toshiya Hari reinstated coverage of Nvidia (NVDA) with a Neutral rating and $245 price target, which represents 7% potential upside. The analyst believes the risk/reward on the stock is fairly balanced on a 12-month basis.
H.C. Wainwright analyst Robert Burns initiated coverage of Portage Biotech (PRTG) with a Buy rating and $32 price target. Portage is a "rapidly emerging" biotech company developing an array of immuno-oncology strategies, including a novel invariant natural killer T cell agonist, IMM60, Burns contended.
Oppenheimer analyst Jed Kelly initiated coverage of Super Group (SGHC) with an Outperform rating and $11 price target. The analyst believes Super Group's intense customer focus is maximizing player retention to generate top-tier industry EBITDA margins/free cash flow conversion.
Wells Fargo analyst Finian O'Shea initiated coverage of Crescent BDC (CCAP) with an Overweight rating and $19.50 price target. The analyst sees its 0.17-times discount to NAV being "too harsh" in the context of its credit profile and senior debt orientation, underwriting track record, and conservative leverage profile.