Coupang upgrade, Micron downgrade and Harley-Davidson 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:
Credit Suisse analyst Soyun Shin upgraded Coupang (CPNG) to Outperform from Neutral with a price target of $19, down from $28. Shares have underperformed the S&P by 58% in the past year over concerns about the sustainability of traffic growth and macro uncertainty, but Shin believes that a deceleration of revenue growth has been "more than priced" into the stock given the weakness in share price.
Jefferies analyst Giacomo Romeo upgraded TotalEnergies (TTE) to Buy from Hold with a price target of EUR 60, up from EUR 51. The company, along with BP (BP), should be able to increase the size of its quarterly buybacks by 50%, Romeo tells investors
Atlantic Equities analyst John Heagerty upgraded First Republic (FRC) to Overweight from Neutral with a price target of $188, down from $210, telling investors that his analyses of the last Fed rate-tightening cycle indicate that First Republic should continue to perform strongly over the next few years.
RBC Capital analyst TJ Schultz upgraded Sitio Royalties (STR) to Outperform from Sector Perform with a price target of $43, up from $36
HSBC analyst Thomas Martin upgraded Grand City Properties (GRNNF) to Buy from Hold with a price target of EUR 18, down from EUR 25.50.
Top 5 Downgrades:
BofA analyst Vivek Arya downgraded Micron (MU) to Neutral from Buy with a price target of $62, down from $70, following the company's quarterly report. The company's below-consensus Q4 guidance reflected weak consumer demand, China lockdowns that accounted for nearly half of the miss, and slower enterprise sales as downstream customers were constrained by other components, Arya noted.
Berenberg analyst William Howard downgraded FedEx (FDX) to Hold from Buy with a price target of $275, down from $333. The stock has had "something of a reprieve in the past few weeks, after the company changed its CEO and the apparent influence of an activist investor prompted some strategy changes," said Howard. However, with near-term earnings risks "now mounting and mixed prospects for the execution of the strategic review," the shares may "pause for breath until the macroeconomic outlook becomes clearer," in the view of the analyst.
Nomura analyst Martin Heung downgraded XPeng (XPEV) to Neutral from Buy with a price target of $36.30, down from $64.60, as the analyst believes the company can't avoid burning cash flow in a the short-term.
BofA analyst Brad Sills downgraded Duck Creek Technologies (DCT) to Neutral from Buy with a price target of $16, down from $39, while JMP Securities analyst Joe Goodwin downgraded Duck Creek to Market Perform from Outperform without a price target post the company's fiscal Q3 report.
Maxim analyst Jason McCarthy downgraded 9 Meters Biopharma (NMTR) to Hold from Buy without a price target after the company announced the Phase 2 results from its vurolenatide VIBRANT study for short bowel syndrome as well as a senior secured convertible notes facility with a single lender for up to $70M.
Top 5 Coverage Initiations:
DA Davidson analyst Brandon Rolle initiated coverage of Harley-Davidson (HOG) with a Neutral rating and $35 price target. The analyst is cautious on the outlook for the stock given the current macroeconomic backdrop as well as the recent production shutdown and industry channel checks that revealed mixed demand trends across the U.S.
Cantor Fitzgerald analyst Brett Knoblauch initiated coverage of SoundHound AI (SOUN) with a Neutral rating and $3 price target. While he agrees with management that voice AI will be an extremely large market opportunity, it is a difficult to value market opportunity and the company's revenue targets look "ambitious," Knoblauch tells investors.
Citi analyst Andrew Kaplowitz initiated coverage of Symbotic (SYM) with a Buy rating and $15 price target. Given favorable trends across the warehouse automation end market and the company's positioning as an end-to-end warehouse automation player, Symbotic is well positioned to generate "hyper-growth" over the next several years, Kaplowitz tells investors. He believes Walmart's (WMT) commitment to deploy Symbotic systems in its 42 regional centers and Symbotic's existing backlog of $11.4B should support "near-term resiliency" and provide strong multi-year visibility to sales growth.
Piper Sandler analyst Christopher Raymond initiated coverage of Vectivbio (VECT) with an Overweight rating and $23 price target. The analyst sees the company's lead asset, apraglutide, in development for short bowel syndrome and other indications, as a potentially "best-in-class agent" that represents an over $750M revenue opportunity.
Daiwa analyst Jonathan Kees initiated coverage of Comcast (CMCSA) with an Outperform rating and $43 price target and initiated coverage of Paramount (PARA) with a Neutral rating and $26 price target.