Synchrony Financial upgrade, JetBlue downgrade and Take-Two reinstatement 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:
- Piper Sandler analyst Kevin Barker upgraded Synchrony Financial (SYF) to Overweight from Neutral with a price target of $49, up from $48. While the stock has come under pressure on fears of a pending recession, rising funding costs, and increasing competition, the analyst believes the numbers are telling a different story, with Synchrony experiencing strong credit performance and indicating that its loan growth is accelerating.
- Bank of America analyst John Murphy double upgraded Aptiv (APTV) to Buy from Underperform with a price target of $165, up from $125, as he rebalanced his ratings among his auto makers and suppliers coverage. The analyst also double upgraded Lear (LEA) Buy from Underperform with a price target of $195, up from $150, upped Visteon (VC) and Adient's (ADNT) ratings to Neutral from Underperform with price targets of $140 and $47, respectively.
- Evercore ISI analyst Steve Sakwa upgraded Invitation Homes (INVH) to Outperform from In Line with a price target of $46, up from $44. The analyst sees higher growth prospects for the company in 2023 and a slightly better long-term growth profile.
- Raymond James analyst Michael Rose upgraded Cullen/Frost (CFR) to Outperform from Market Perform with a $160 price target. Rose believes that the company possesses both offensive and defensive characteristics that will sustain its year-to-date outperformance in the short to intermediate-term, including solid growth prospects bolstered by the underlying strength of the Texas economy and its ongoing expansionary efforts in Houston and Dallas and upside to NIM/net interest income forecasts.
- B. Riley analyst Alex Rygiel upgraded Trex Company (TREX) to Buy from Neutral with a price target of $88, down from $106. Rygiel believes Trex is oversold with the linkage to new construction and interest rates overstated.
Top 5 Downgrades:
- Raymond James analyst Savanthi Syth downgraded JetBlue Airways (JBLU) to Market Perform from Outperform without a price target. The analyst sees increased uncertainty following the company's all-cash offer to acquire Spirit Airlines (SAVE) for $33 per share.
- Evercore ISI analyst Duane Pfennigwerth downgraded Spirit Airlines to In Line from Outperform with an unchanged price target of $28. JetBlue's bid for Spirit "feels like a reset" and "plan B" alternative, which is perhaps an acknowledgment of the more constrained operating environment, said Pfennigwerth, who adds that he would "be surprised if a higher offer materializes" and expects "twists and turns along the way" during any deal approval process.
- Bank of America analyst John Murphy downgraded Avis Budget (CAR) to Underperform from Neutral with a price target of $240, down from $250 as part of a broader research note on Auto Suppliers, Rentals, and Dealers. The analyst also downgraded CarMax to Neutral from Buy with a price target of $165, down from $195, and America's Car-Mart (CRMT) to Underperform from Buy with a price target of $123, down from $191.
- Keefe Bruyette analyst Michael Brown downgraded Moelis (MC) to Market Perform from Outperform with a $57 price target. With the brokers and merger and acquisition advisor stocks down 21% year-to-date, first quarter earnings should provide the opportunity to hit the "reset" button for the group, Brown told investors in a research note.
- Cowen analyst Yaron Werber downgraded Bluebird Bio (BLUE) to Market Perform from Outperform without a price target. The analyst has concerns about the company's commercial outlook following Tuesday's restructuring announcement, especially given its lag to market and the competitive sickle cell disease landscape.
Top 5 Coverage Initiations:
- Bank of America analyst Omar Dessouky reinstated coverage of Take-Two (TTWO) with a Buy rating and $213 price target. The stock looks poised to break out of its two-year range as "COVID joiner churn" has likely subsided and given that its release pipeline for 2023-2024 is the largest in the company history, the analyst told investors in a research note.
- Morgan Stanley analyst Terence Flynn initiated coverage of Arvinas (ARVN) with an Equal Weight rating and $65 price target as he took over coverage of U.S. Pharmaceuticals at the firm. The analyst also assumed coverage of Royalty Pharma (RPRX), AbbVie (ABBV), and Elli Lilly (LLY) with Overweight ratings; Pfizer (PFE), Merck (MRK) and Johnson & Johnson (JNJ) with Equal Weight ratings; and Bristol-Myers (BMY) with an Underweight rating,
- UBS analyst Eliana Merle initiated coverage of Gossamer Bio (GOSS) with a Buy rating and $19 price target. The company's clinical portfolio is underappreciated with near-term upside in fiscal 2022 heading into two key Phase 2 readouts and in fiscal 2023 as its BTK franchise unfolds, the analyst told investors in a research note.
- Wells Fargo analyst Derek Archila initiated coverage of Zentalis (ZNTL) with an Overweight rating and $67 price target. The analyst believes the company's lead asset ZN-c3, a WEE1 inhibitor, is de-risked and differentiated. ZN-c3's upcoming data at AACR in uterine serous carcinoma and ovarian cancer should further drive home this fact, and offers upside for shares in his base case.
- BMO Capital analyst James Thalacker initiated coverage of Atlantica Sustainable Infrastructure (AY) with a Market Perform rating and $37 price target. The analyst finds the stock fairly valued relative to peers given Atlantica's "slightly slower" growth profile and geographic mix, though he acknowledges the company's international investments are underpinned by attractive contract terms/ which should limit volatility.
Symbols:
PFE SYF APTV - $111.07 /
-1.695 (-1.50%)
LEA VC ADNT INVH CFR TREX JBLU SAVE CAR CRMT MC BLUE TTWO ARVN RPRX ABBV LLY - $295.74 /
+3.215 (+1.10%)
MRK JNJ BMY GOSS ZNTL AYAtlantica Sustainable Infrastructure
Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street