Fortive upgrade, Alibaba downgrade and Peloton 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:
Barclays analyst Julian Mitchell upgraded Fortive (FTV) to Overweight from Equal Weight with an unchanged price target of $75. Since January 1 2021, Fortive has underperformed the S&P 500 Index by 35%, which creates an attractive risk/reward profile in a "choppy macro backdrop," Mitchell told investors in a research note.
KeyBanc analyst Jeffrey Hammond upgraded Helios Technologies (HLIO) to Overweight from Sector Weight with a $90 price target. Following meetings with the company's management team, the analyst walked away "incrementally confident" in Helios' ability to meet and potentially exceed its attractive long-term targets.
Raymond James analyst Simon Leopold upgraded Nokia (NOK) to Outperform from Market Perform with a $6.50 price target. The analyst believes the company's competitive position is improving and its market opportunities exceed expectations.
Wolfe Research analyst Scott Group upgraded TFI International (TFII) to Outperform from Peer Perform with a $115 price target. The analyst recommends buying TFI on the stock pullback given its company-specific LTL margin improvement story and attractive valuation.
KeyBanc analyst Aleksey Yefremov upgraded Olin (OLN) to Overweight from Sector Weight with a $64 price target. The analyst sees the recent spike in global energy as favorable to Olin, both in the short and long term.
Top 5 Downgrades:
JPMorgan analyst Alex Yao double-downgraded Alibaba (BABA) to Underweight from Overweight with a price target of $65, down from $180. The analyst believes Alibaba, as one of the most widely owned stocks within the China Internet sector, will continue to face stock selling pressure in the near-term. The analyst also double-downgraded Baidu (BIDU) to Underweight from Overweight with a price target of $90, down from $245.
BMO Capital analyst Kenneth Zaslow downgraded Tyson Foods (TSN) to Market Perform from Outperform with a price target of $99, down from $115. The analyst no longer expects Tyson to exceed expectations in fiscal 2023 given a more rapid return to normal beef margins, pressure on pork margins, and ongoing inflation in prepared foods.
JPMorgan analyst Andre Chang double-downgraded JD.com (JD) to Underweight from Overweight with a price target of $35, down from $100, citing his view that the sector-wide selloff might continue without valuation support in the near-term as risk management becomes the most important consideration among global investors in relation to their China investment strategy. The analyst also double-downgraded Pinduoduo (PDD) to Underweight from Overweight with a price target of $23, down from $105.
Raymond James analyst Brian Gesuale downgraded IPG Photonics (IPGP) to Underperform from Market Perform without a price target. Nearly every demand and cost input indicator has turned negative over the last couple of months with little chance of meaningful improvement for IPG Photonics in 2022, Gesuale told investors in a research note.
Wells Fargo analyst Nitin Kumar downgraded Southwestern Energy (SWN) to Underweight from Equal Weight with a price target of $10, up from $8. The analyst believes it will take time for equity holders to realize the benefits of recents moves as the current focus is on debt reduction.
Top 5 Coverage Initiations:
Morgan Stanley analyst Lauren Schenk initiated coverage of Peloton Interactive (PTON) with an Equal Weight rating and $32 price target. The analyst expects Peloton to remain the "clear leader" in connected fitness, but notes she lacks visibility and conviction in the company's medium-term outlook.
Barclays analyst Saket Kalia initiated coverage of Tyler Technologies (TYL) with an Equal Weight rating and $445 price target. While Tyler is a premium asset in vertical software, the stock's risk/reward is balanced at current levels, Kalia told investors in a research note.
Barclays analyst Benjamin Theurer reinstated coverage of Pilgrim's Pride (PPC) with an Overweight rating and $28 price target. The analyst believes Pilgrim's offers an attractive opportunity to gain exposure to the protein industry.
Loop Capital analyst Hal Goetsch initiated coverage of Oportun Financial (OPRT) with a Buy rating and $24 price target. Shares of Oportun have corrected despite excellent execution, the Digit acquisition and an acceleration in originations in the second half of 2021 that setup a strong growth outlook for 2022, creating a solid risk reward, Goetsch told investors in a research note.
Craig-Hallum analyst Christian Schwab initiated coverage of QualTek Services (QTEK) with a Buy rating and $6 price target. The analyst believes QualTek is well positioned as a leading provider of infrastructure services to the Telecommunication market as well as Renewables and Recovery logistics.