Hyatt upgrade, Keurig Dr Pepper downgrade and Lucid Group 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:
Evercore ISI analyst Duane Pfennigwerth upgraded Hyatt (H) to Outperform from In Line with a $100 price target. While he views the asset-light hotel brands as attractive overall on their recent pullback, Hyatt offers greater long-term re-rating potential than others in the group, Pfennigwerth contended.
Evercore ISI analyst Steve Sakwa upgraded Prologis (PLD) to Outperform from In Line with a price target of $127, down from $133, citing the stock's underperformance over the last 30 days, which he sees having created a "compelling valuation."
Scotiabank analyst Michael Doumet upgraded FirstService (FSV) to Outperform from Sector Perform with a price target of $135, down from $148, as he assumed coverage of the stock. As the "leader in the highly fragmented outsourced property services markets," FirstService's scale supports several sustainable competitive advantages, Doumet argued.
Alliance Global Partners analyst Brian Kinstlinger upgraded Perficient (PRFT) to Buy from Neutral with a price target of $85, down from $100. Although the analyst expects the company's revenue growth will slow, he still sees double-digit organic revenue growth "given the still solid demand for digital transformation services."
KeyBanc analyst Brandon Nispel upgraded Cogent Communications (CCOI) to Overweight from Sector Weight with a $64 price target. The company's growth should accelerate for the next two years, making the shares attractive, Nispel told investors in a research note.
Top 5 Downgrades:
Goldman Sachs analyst Bonnie Herzog downgraded Keurig Dr Pepper (KDP) to Neutral from Buy with a price target of $37, down from $39. The company continues to execute well in a challenging environment but the stock's risk/reward is more balanced at current levels, Herzog told investors in a research note.
UBS analyst Thomas Wadewitz downgraded CSX (CSX) and Norfolk Southern (NSC) to Neutral from Buy as part of a broader research note on U.S. Railroads. With the macro backdrop deteriorating, consensus 2023 EPS estimates appear too high for the U.S. rails, the analyst told investors in a research note.
Evercore ISI analyst Steve Sakwa downgraded Douglas Emmett (DEI) to In Line from Outperform with a price target of $24, down from $27. The analyst expects a continued struggle to grow occupancy given the company's high lease-roll over the next couple of years.
Scotiabank analyst Michael Doumet downgraded Colliers International (CIGI) to Sector Perform from Outperform with a price target of $120, down from $165, as he assumed coverage of the stock. Calling Colliers "an easy-to-spot compounder" whose fundamentals blend secular and cyclical trends, Doumet argued that "secular trends are here to stay," but the cyclical trend "ran a little hot" in the last twelve months and should normalize in the next twelve months.
Loop Capital analyst Mark Schappel downgraded CS Disco (LAW) to Hold from Buy with a price target of $10, down from $32.
Top 5 Initiations:
Cantor Fitzgerald analyst Andres Sheppard initiated coverage of Lucid Group (LCID) with an Overweight rating and $23 price target. Sheppard believes Lucid's luxury and premium vehicles provide greater efficiency, longer range, faster charging, and more space relative to its peers.
JMP Securities analyst Roy Buchanan initiated coverage of Dynavax Technologies (DVAX) with an Outperform rating and $22 price target. Dynavax's adjuvant technology is validated by a "best-in-class authorized vaccine and is the cornerstone in the company's emerging pipeline," as COVID-19 provided a bolus of cash from partners seeking to safely boost immunogenicity in a range of underlying vaccine technologies, the analyst argued.
B. Riley analyst Christopher Souther initiated coverage of Lion Electric (LEV) with a Buy rating and $5 price target. The analyst has confidence in Lion's ability to maintain a leadership position in the "growing" electric medium- and heavy-duty vehicle market.
EF Hutton analyst Tim Moore initiated coverage of Xpel (XPEL), which he identifies as the market share leader in automotive paint protection film, with a Buy rating and $104 price target.
BofA analyst Grace Carter initiated coverage of Cincinnati Financial (CINF) with a Neutral rating and $92 price target. The analyst noted challenges that are both company-specific and industrywide are weighing on results.