Wipro upgrade, Adobe downgrade and Micron 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:
- Goldman Sachs analyst Sumeet Jain upgraded Wipro (WIT) to Buy from Sell with a $4.87 price target. The analyst sees an attractive valuation at current share levels saying the company's "weak" organic earnings growth is more than priced.
- RBC Capital analyst Paul Quinn upgraded Cascades (CADNF) to Outperform from Sector Perform with a price target of C$12, up from C$11. The analyst expects reduced input costs for the company to result in stronger profitability despite recent softness in containerboard demand.
- Societe Generale analyst Nick Holmes upgraded Aegon (AEG) to Buy from Hold with an unchanged price target of EUR 5.25. The analyst sees a "strong case" for additional buybacks in 2023.
- HSBC analyst Joseph Thomas upgraded Entain (GMVHF) to Buy from Hold with a 1,490 GBp price target.
- Deutsche Bank analyst Robert Grindle upgraded BT Group (BTGOF) to Hold from Sell with a 140 GBp price target, citing valuation. Risks around the stock, which remain more expensive than peers, are now better understood by the market, Grindle told investors in a research note.
Top 5 Downgrades:
- BMO Capital analyst Keith Bachman downgraded Adobe (ADBE) to Market Perform from Outperform with a price target of $435, up from $420. His latest survey data indicated that respondents across the board expressed a greater willingness to move away from Adobe Creative Cloud relative to his April checks, particularly younger employees and employees working for organizations with fewer than 5K employees.
- Goldman Sachs analyst Sumeet Jain downgraded Infosys (INFY) to Sell from Buy and removed the stock from the firm's Conviction List with a $15.89 price target on the ADRs, citing the view that the current valuation is not factoring in the significant revenue growth slowdown ahead in fiscal 2024.
- Argus analyst John Staszak downgraded Tyson Foods (TSN) to Hold from Buy. The company is facing the headwinds of inflation as U.S. customers have been purchasing less costly generic products rather than Tyson's relatively expensive goods, the analyst told investors in a research note.
- Credit Suisse analyst Kaumil Gajrawala downgraded Oatly Group (OTLY) to Neutral from Outperform with a price target of $3.43, down from $6. The analyst expects a "particularly volatile consumer environment" in Europe and Asia.
- Credit Suisse analyst Michael Binetti downgraded Rent The Runway (RENT) to Neutral from Outperform with a price target of $4, down from $7, on slowing active customer growth.
Top 5 Initiations:
- Exane BNP Paribas analyst Karl Ackerman initiated coverage of Micron (MU) with an Outperform rating and $75 price target. The market is entering a cyclical downturn in memory demand, but Ackerman thinks DRAM will bottom before NAND and favors Micron over peers given its market leadership on process technology. The analyst also started Skyworks (SWKS) with an Outperform rating and $120 price target given the relative strength of the Apple (AAPL) supply chain and its diversification into autos, industrial and IoT markets.
- Exane BNP Paribas analyst Karl Ackerman initiated coverage of Seagate (STX) with a Neutral rating and $70 price target. The analyst's estimates are below consensus through 2023 but he sees the company's earnings per share returning to $8.60 by 2020 as mass capacity hard-disk-drives dominate data center storage demand. Ackerman also started Qorvo (QRVO) with a Neutral rating and $100 price target as sentiment on the shares is "poor" and his view is below the Street for calendar 2023.
- Exane BNP Paribas analyst Karl Ackerman initiated coverage of Western Digital (WDC) with an Underperform rating and $30 price target. The analyst thinks the company could face a more challenging time relative to peers entering a cyclical downturn in NAND.
- Bernstein analyst Douglas Harned initiated coverage of Textron (TXT) with a Market Perform rating and $74 price target. The analyst prefers to wait until after the U.S. Army's Future Long-Range Assault Aircraft decision in late October, saying the stock risk "appears biased to the downside."
- Wedbush analyst Daniel Ives initiated coverage of Sono Motors (SEV) with a Neutral rating and $4 price target. The analyst notes that Sono Group develops and manufactures solar technology to power electric vehicles while creating its own in-house solar EVs.
Symbols:
WIT CADNF AEG GMVHF BTGOF ADBE - $378.07 /
-18.26 (-4.61%)
INFY TSN OTLY RENT MU SWKS AAPL - $159.26 /
-4.165 (-2.55%)
STX QRVO TXT SEV Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street