Apple upgrade, Teladoc downgrade and Roblox initiation 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:
- Credit Suisse analyst Shannon Cross upgraded Apple (AAPL) to Outperform from Neutral with a $201 price target. Apple's installed base of greater than 1.8B devices accelerates market adoption of the company's services and software offerings, creates stickier customer relationships with higher wallet share, and creates significant competitive advantages, Cross told investors.
- Roth Capital analyst Edward Engel upgraded DraftKings (DKNG) to Buy from Neutral with a price target of $25, up from $18, saying he sees a tactical opportunity to own U.S. iGaming stocks ahead of NFL season.
- Bank of America analyst Peter Galbo upgraded J.M. Smucker (SJM) to Buy from Neutral with a price target of $155, up from $145. Shares have lagged packaged food peers, but he thinks the valuation gap should close as the company executes on its fiscal 2023 outlook.
- JPMorgan analyst Jeffrey Zekauskas upgraded Westlake (WLK) to Overweight from Neutral with a $135 price target, citing his view that he sees room for Westlake's trading multiple to rise.
- BMO Capital analyst Rene Cartier resumed coverage and upgraded Sandstorm Gold (SAND) to Outperform from Market Perform with a price target of $9.00, down from $9.50. The company has significantly increased its scale, enhanced its diversification, and added a number of long-life assets to the portfolio, the analyst argued.
Top 5 Downgrades:
- Guggenheim analyst Sandy Draper downgraded Teladoc (TDOC) to Sell from Neutral with a $25 price target. Teladoc's revenue growth and EBITDA will remain pressured by its exposure to the consumer segment, from which it generates 40% of its revenue, a strong dollar and "a challenging macro environment that is elongating sales cycles in enterprise decisions," Draper told investors.
- Argus analyst John Staszak downgraded Yum! Brands (YUM) to Hold from Buy. The analyst cited the company's second quarter earnings miss while noting that its brands typically report uneven results, pointing to the recent strength at Taco Bell having been offset by weakness at Pizza Hut and KFC.
- Deutsche Bank analyst Benjamin Soff downgraded Take-Two (TTWO) to Hold from Buy with a price target of $160, down from $200. Following the company's fiscal first quarter earnings report and guidance update, the analyst sees a balanced risk/reward outlook this year due in part to a weakening macro backdrop and a lack of material near-term catalysts over the next few quarters.
- Wedbush analyst Michael Pachter downgraded FuboTV (FUBO) to Neutral from Outperform with a price target of $6, up from $5, as he believes the company needs to raise capital and cut cash burn rapidly or it will be out of cash within a year. While he is confident that the company can do both, it is uncertain how dilutive the capital raise will be and how rapidly its cash burn will improve.
- Citi analyst Chasen Bender downgraded Weber (WEBR) to Sell from Neutral with a price target of $2.75, down from $7. Sales have unwound over the last several quarters and with macro headwinds still pressuring the global consumer, the demand environment looks uncertain, said Bender, who believes that Weber's sales trends will continue to get worse before they get better.
Top 5 Initiations:
- Wolfe Research analyst Gal Munda initiated coverage of Roblox (RBLX) with a Peer Perform rating. The company gained popularity during the pandemic, becoming the leading virtual gaming platform among children and teens, but now faces some very high comps as the economy reopens, the analyst told investors in a research note.
- Wolfe Research analyst Gal Munda initiated coverage of Autodesk (ADSK) with an Outperform rating and $270 price target. The analyst said the company has continued to change the business model over the last few years, adding that he believes the end of discounts for multiyear billings is providing a unique opportunity to buy into this "quality name" at a discount. Munda also started coverage of Trade Desk (TTD) with a Peer Perform rating.
- Rosenblatt analyst Andrew Bond initiated coverage of MarketAxess (MKTX) with a Sell rating and $231 price target. The Street continues to assume MarketAxess' market share and overall performance will rebound with elevated volatility, but that has not been the case most of the year and despite a meaningful contraction, slower growth estimates and limited recurring revenue, the stock's multiple is still the highest in the U.S. exchange sector, Bond said. The analyst also started coverage of Tradeweb Markets (TW) with a Buy rating and $91 price target.
- Rosenblatt analyst Andrew Bond initiated coverage of CME Group (CME) with a Sell rating and $171 price target. CME is a "great business," but it has the highest multiple in the exchange group despite the slowest growth, limited non-transaction revenue, and stagnant open interest despite a highly favorable volume environment, Bond argued. The analyst also started IntercontinentalExchange (ICE), Cboe Global Markets (CBOE), and Nasdaq (NDAQ)a with Buy ratings.
- Credit Suisse analyst Shannon Cross assumed coverage of IBM (IBM) with an Outperform rating with a price target of $163, up from $156. The analyst believes that IBM is well positioned to likely benefit from what the company estimates is a $1T market opportunity in hybrid cloud.
Symbols:
AAPL DKNG SJM - $139.70 /
+2.165 (+1.57%)
WLK SAND TDOC YUM TTWO FUBO WEBR RBLX ADSK TTD MKTX TW CME ICE - $110.37 /
-0.775 (-0.70%)
CBOE NDAQ IBM Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street