Snowflake upgrade, eBay downgrade and DraftKings 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:
Jefferies analyst Brent Thill upgraded Snowflake (SNOW) to Buy from Hold with a price target of $200, up from $125. The analyst cited the "meaningful multiple compression" over the past few months in the shares as well as the company's continued execution on its platform expansion story for the upgrade.
BMO Capital analyst Keith Bachman upgraded Fortinet (FTNT) to Outperform from Market Perform with a $70 price target adjusted after the 5-1 stock split, with like-for-like pre-split price target rising to $350 from $325. The analyst believes security will remain amongst the most resilient parts of IT spend during a recession.
Goldman Sachs analyst Bonnie Herzog upgraded Molson Coors (TAP) to Neutral from Sell with a price target of $54, up from $46. The analyst sees an improved risk/reward for the shares in the current environment, given "some evidence of stabilization" for Molson's core brands and an improved "out-of-stock situation."
Compass Point analyst Chase White upgraded Riot Blockchain (RIOT) to Buy from Neutral with a price target of $14, down from $30, after updating his estimates for the crypto miners in his coverage based on his revised Bitcoin price and global hash rate forecasts.
Stifel analyst Tore Svanberg upgraded Microchip (MCHP) to Buy from Hold with a price target of $75, up from $70. The stock is down 31% from its peak on January 4, which creates a favorable risk/return level even with the uncertain macro environment, Svanberg argued.
Top 5 Downgrades:
UBS analyst Kunal Madhukar downgraded eBay (EBAY) to Neutral from Buy with a price target of $48, down from $60. The company's non-focus categories are declining and while its Focus categories are doing better, they comprise "purely discretionary spend" that could be disproportionately impacted in a downturn, the analyst told investors in a research note.
UBS analyst Kunal Madhukar downgraded Farfetch (FTCH) to Neutral from Buy with a price target of $10, down from $13. The analyst believes management's assumptions for gross merchandise volume growth in the Americas, Europe, Middle East, and Africa excluding Russia, and Asia-Pacific excluding China could still be optimistic especially if the macro outlook continues to worsen.
Goldman Sachs analyst Bonnie Herzog downgraded Boston Beer (SAM) to Sell from Neutral with a price target of $318, down from $380. The analyst is "incrementally more negative" on Boston Beer and more positive on Molson Coors and Constellation Brands (STZ) based on feedback from beer distributor contacts.
Deutsche Bank analyst Brian Bedell downgraded State Street (STT) to Hold from Buy with a $67 price target. The analyst reduced earnings estimates and price targets across the "rate sensitive" trust banks and online brokers to reflect to reflect likely greeter deposit runoff from higher short-term interest rate assumptions and slightly higher deposit betas.
Mizuho analyst Paul Fremont downgraded Portland General Electric (POR) to Neutral from Buy with a price target of $50, down from $56. The shares have outperformed the sector by 6% since the company's first quarter earnings call in late April, and currently trading at a 9% price-to-earnings discount to the electric utilities group, up from a 15% discount following the earnings call, Fremont noted.
Top 5 Coverage Initiations:
JMP Securities analyst Jordan Bender initiated coverage of DraftKings (DKNG) with an Outperform rating and $25 price target. The analyst believes the shares will see a positive re-rating as the company approaches profitability. Bender also started coverage of Penn National (PENN), MGM Resorts (MGM), Rush Street Interactive (RSI), Golden Entertainment (GDEN) and Flutter Entertainment (PDYPY) with Outperform ratings, and Bally’s (BALY) with a Market Perform.
Morgan Stanley analyst John Glass initiated coverage of Portillo's (PTLO) with an Equal Weight rating and $19 price target. The analyst argued that while Portillo's has "many attractive long-term attributes," including a well-established regional brand with strong consumer affinity, inflation is now "starkly worse" since the company's initial public offering, which could impact its company-operated model.
Jefferies analyst Anna Glaessgen initiated coverage of Polaris (PII) with a Hold rating and $105 price target. Though Polaris' "dominant position" in powersports and exposure to utility segments offer "a relatively safe harbor" amid a "macro storm," these positives are balanced by risks that include worsening consumer and end market deceleration and ongoing supply chain pressures, Glaessgen told investors.
Wedbush analyst Daniel Ives initiated coverage of SoundHound (SOUN) with an Outperform rating and $7 price target. With 75 billion IoT devices in existence worldwide by 2025 and over 8 billion voice assistants projected by 2024, SoundHound has the potential to capture significant market share in the massive $160 billion total addressable market by 2026 comprised of IoT, auto, retail, hospitality, enterprise, healthcare, contact center, and banking, Ives argued.
Argus analyst John Eade initiated coverage of Enovis (ENOV) with a Hold rating. The stock has underperformed the market over the past quarter with a 20% decline, and while its balance sheet looks "clean," its earnings outlook is "murky," the analyst told investors in a research note.