Carvana upgrade, Adobe downgrade and Lucid Group 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:
Piper Sandler analyst Alexander Potter upgraded Carvana (CVNA) to Overweight from Neutral with a price target of $73, down from $98. The company is now 1/10th as valuable as it was 12 months ago, and "many realistic scenarios" suggest that Carvana is "grossly undervalued," Potter told investors in a research note.
BofA analyst Ken Hoexter upgraded Canadian Pacific (CP) to Buy from Neutral with a price target of $87, up from $85. He had been neutral to negative on most transport carriers since April given the decelerating freight environment, but rail service has begun to improve as hiring rebounds and that volumes have inflected positively. Hoexter also upgraded Canadian National (CNI) to Buy from Neutral with a price target of $135, up from $128, and upgraded Union Pacific (UNP) to Buy from Neutral with a price target of $260, up from $227.
Wedbush analyst Daniel Ives upgraded Telos (TLS) to Outperform from Neutral with a $15 price target as he believes the company is starting to gain another leg of success on the federal cyber security front over the next 6-9 months.
Compass Point analyst Casey Alexander upgraded Argo Group (ARGO) to Buy from Neutral with a price year-end 2023 price target of $28.50, down from $35, after the company completed two recent major strategic transactions, including the sale of the Lloyds syndicate and the LPT/Enstar transaction.
Citi analyst Scott Gruber upgraded APA Corp. (APA) to Buy from Neutral with a price target of $58, up from $40. The company offers an underappreciated growth story, combining upcoming exposure to the strength in global gas prices coupled with base volume growth, and potentially supplemented by a Suriname development longer term, Gruber told investors in a research note.
Top 5 Downgrades:
Mizuho analyst Gregg Moskowitz downgraded Adobe (ADBE) to Neutral from Buy with a price target of $440, down from $480, ahead of the company's fiscal third quarter results. Channel checks this quarter were indicative of a more difficult environment than expected, even allowing for a challenging macro, Moskowitz contended.
Wells Fargo analyst Steven Cahall downgraded Cable One (CABO) to Equal Weight from Overweight with a price target of $1,200, down from $1,700. Cable One is still the best house in the Cable neighborhood, but the analyst's view of the sector is incrementally worse ahead of the capex cycle.
Vertical Research analyst Kevin McCarthy downgraded Livent (LTHM) to Hold from Buy with a price target of $35, up from $33. The stock is up over 41% year-to-date and have outpace lithium peer Albemarle (ALB), noted McCarthy, who thinks "harder miles now lie ahead" following a parabolic surge in lithium selling prices over the past 21 months.
Goldman Sachs analyst Jamie Perse downgraded Oak Street Health (OSH) to Neutral from Buy with a price target of $29, down from $32. The analyst's more cautious outlook reflects the company's "growth-profitability constraints.
Citi analyst Scott Gruber downgraded Occidental Petroleum (OXY) to Neutral from Buy with a price target of $67, up from $65. The shares, which are the top performing exploration and production company year-to-date, now trade at a 2023 cash flow multiple approaching EOG Resources (EOG) and remaining upside potential "appears modest," Gruber told investors in a research note.
Top 5 Initiations:
R.F. Lafferty analyst Jaime Perez initiated coverage of Lucid Group (LCID) with a Buy rating and $19 price target. As of August 3, reservations for the Lucid Air luxury EV sedan were greater than 37,000 units with an estimated order book value of $3.5B, the analyst noted.
Cowen analyst Doug Creutz initiated coverage of Roblox (RBLX) with an Underperform rating and $31 price target. The company is a successful video game and entertainment platform "with some attractive attributes," but its current valuation "far too aggressively" factors in a metaverse future that is still likely "far away," Creutz argued.
Loop Capital analyst Mark Schappel initiated coverage of Monday.com (MNDY) with a Buy rating and $175 price target. The analyst sees the company as the "likely winner" in the emerging digital teamwork tools market, stating that its software suite consists of a collection of configurable workplace collaboration and planning tools that helps teams of employees collaborate on shared projects or tasks.
Morgan Stanley analyst Keith Weiss initiated coverage of Bill.com (BILL) with an Overweight rating and $220 price target. The company has "strong secular tailwinds" that are driving penetration into a "nascent" market opportunity which can potentially reach $80B, Weiss told investors in a research note.
BMO Capital analyst Jeffrey Silber initiated coverage of CoStar Group (CSGP) with a Market Perform rating and $83 price target. The stock's recent run-up, exacerbated by an S&P 500 Index inclusion announcement, makes it difficult to justify an Outperform rating, Silber told investors in a research note.