First Solar upgrade, Spirit Airlines double downgrade, and Evolent Health 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:
Oppenheimer analyst Colin Rusch upgraded First Solar (FSLR) to Outperform from Perform with a $116 price target. First Solar reported mixed results for Q2 as cost, logistic, and currency headwinds impacted operating results, but the company was able to complete the sale of its project business and book 10GW since its last conference call, Rusch tells investors in a research note.
Baird analyst Peter Arment upgraded Northrop Grumman (NOC) to Outperform from Neutral with a price target of $529, up from $488, to reflect stronger growth expected in the second half and re-acceleration of growth in 2023 from a low-single digit percentage in 2022 to mid-single digits in 2023. Northrop "continues to be best in class on execution" and key drivers in Space and Missile Defense and the ramp of the B-21 support the stock "being a core long-term holding," Arment tells investors.
Evercore ISI analyst Glenn Schorr upgraded Carlyle Group (CG) to Outperform from In Line with a price target of $45, up from $38. The "Growth, Diversification & Profitability" story has been "coming along for a while now" and he feels increasingly confident about continued fee related earnings growth, improving margins, continued high performance fees and the promise for more capital formation and fundraising, Schorr said.
Needham analyst Mayank Tandon upgraded ExlService (EXLS) to Buy from Hold with a $190 price target. The analyst is positive on the company's strong quarter as Global 2000 firms are spending on services that help them streamline operations, reduce costs, and leverage analytics, the analyst tells investors in a research note.
JMP Securities analyst Aaron Hecht upgraded MAA (MAA) to Outperform from Market Perform with a $220 price target. The analyst believes the company is "ideally positioned to perform through volatile capital market conditions."
Top 5 Downgrades:
JPMorgan analyst Jamie Baker double downgraded Spirit Airlines (SAVE) to Underweight from Overweight with a price target of $29, down from $30. "Significant patience is required" regarding the takeover by JetBlue Airways (JBLU), Baker tells investors in a research note.
Baird analyst Tristan Gerra downgraded Intel (INTC) to Neutral from Outperform with a price target of $40, down from $60. Intel has suffered from significant overshipping in the PC channel in past several quarters and he is increasingly concerned that 20 year high inventory days in the PC supply chain could take quarters to unfold, Gerra tells investors. Susquehanna analyst Christopher Rolland also downgraded Intel to Negative from Neutral with a price target of $33, down from $40.
JPMorgan analyst Philip Cusick downgraded Comcast (CMCSA) to Neutral from Overweight with a price target of $45, down from $52. The company reported "mixed" Q2 results with solid financials but soft cable revenue generating units, Cusick tells investors in a research note. Macquarie analyst Tim Nollen also downgraded Comcast to Underperform from Neutral with a price target of $33, down from $40.
Evercore ISI analyst Shweta Khajuria downgraded Roku (ROKU) to In Line from Outperform with a price target of $75, down from $140. Roku's Q2 earnings report was expected to be "muted," but she did not expect headwinds from a soft scatter market, weakening consumer discretionary spending, inflationary pressure, and supply chain issues to be "so dramatic," Khajuria tells investors.
Benchmark analyst Mike Hickey downgraded Tilray (TLRY) to Sell from Hold with a $3 price target. Fiscal Q4 revenue and profit exceeded consensus, but missed Benchmark estimates, and Tilray offered a FY23 profit profile that tops the consensus view, said Hickey.
Top 5 Initiations:
RBC Capital analyst Sean Dodge initiated coverage of Evolent Health (EVH) with an Outperform rating and $40 price target. The company's focus on better managing specialty care "differentiates it from the increasingly dense tech-enabled provider space," Dodge tells investors in a research note.
Berenberg analyst Dev Weerasuriya initiated coverage of Doximity (DOCS) with a Buy rating and $49 price target. Doximity is the largest physician engagement platform in the U.S., used by pharma, med. tech and health systems for marketing to and recruiting healthcare professionals, Weerasuriya tells investors in a research note.
Jefferies analyst Roger Song initiated coverage of Prelude Therapeutics (PRLD) with a Buy rating and $9 price target. The company' is a clinical-stage precision oncology biotech and its PRT811 showed encouraging Phase 1 escalation data, with expansion data in the second half of 2022, Song tells investors in a research note.
Deutsche Bank analyst Tom Sykes initiated coverage of Haleon (HLN) with a Hold rating and 300 GBp price target. The company has solid prospects but faces some leverage and trade down risk, Sykes tells investors in a research note.
RBC Capital analyst Sean Dodge initiated coverage of Signify Health (SGFY) with a Sector Perform rating and $18 price target. He is encouraged by the progress Signify is making on its longer-term vision to build a high-performing total-cost-of-care platform, and views its "unique capability combination" as "an important differentiator," Dodge tells investors.