Walmart upgrade, Twitter downgrade and Airbnb 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:
Erste Group analyst Hans Engel upgraded Walmart (WMT) to Buy from Hold as he believes the retailer is "showing low but stable sales growth."
Morgan Stanley analyst Adam Jonas upgraded Ford (F) to Overweight from Equal Weight, citing valuation as lower expectations have brought the stock to below his unchanged $14 price target.
Susquehanna analyst Mehdi Hosseini upgraded Silicon Motion (SIMO) to Positive from Neutral with a $108 price target, noting that shares are down about 30% from $95 in early May when MaxLinear (MXL) announced its deal despite the acquisition being still pending and expected to close before mid-2023.
Deutsche Bank analyst Steve Powers upgraded Church & Dwight (CHD) to Buy from Hold with a price target of $85, down from $90. The stock "has taken a break, but it's not broken," Powers told investors in a research note.
Erste Group analyst Hans Engel upgraded Charles Schwab (SCHW) to Buy from Hold. The company will achieve positive sales and earnings growth in 2022 and while its expected growth rates are lower than in the previous year, they are higher than the sector average, Engel argued.
Top 5 Downgrades:
Vertical Group analyst Phil Leggiere downgraded Twitter (TWTR) to Neutral from Buy after on Elon Musk offered to complete the buyout transaction agreed upon in the April 25 merger agreement at the $54.20 per share price.
Erste Group analyst Hans Engel downgraded Nike (NKE) to Hold from Buy. The company has recently reported rising inventories and its operating income has declined due to rising costs, Engel told investors in a research note.
Atlantic Equities analyst John Heagerty downgraded Goldman Sachs (GS) to Underweight from Neutral with a price target of $290, down from $330. The analyst cited declining investment banking activity, falling equity markets and concern that trading estimates "remain too optimistic" for the downgrade. He also downgraded Morgan Stanley (MS) to Neutral from Overweight with a price target of $85, down from $95.
Barclays analyst Trevor Young downgraded Poshmark (POSH) to Equal Weight from Overweight with a price target of $18, up from $17. The analyst believes the proposed Naver deal is likely to close and does not anticipate an over-the-top offer.
Wells Fargo analyst Eric Luebchow downgraded Lumen (LUMN) to Equal Weight from Overweight with a price target of $8, down from $12.50, as he sees increasing risks to the dividend in the near-term.
Top 5 Initiations:
Bernstein analyst Richard Clarke initiated coverage of Airbnb (ABNB) with an Outperform rating and $143 price target. The analyst views the vacation rental market as "far larger" than most estimate at $150B, and believes Airbnb will garner 37% share.
Stephens analyst Nicholas Zangler initiated coverage of Adeia (ADEA) with an Overweight rating and $17 price target. With over 90% of revenues sourced from traditional media companies, including Comcast (CMCSA) and Charter Communications (CHTR), new media companies and their streaming services and CTV OS platforms including Roku (ROKU) and Vizio (VZIO), he believes Adeia "represents a diversified investment in the general proliferation of CTV" and emerging media experiences.
Janney Montgomery Scott analyst John Rowan initiated coverage of Horizon Technology Finance (HRZN) with a Neutral rating and $10 fair value estimate. The externally managed BDC has "a strong brand and reputation in the technology and greater venture debt space," said Rowan, who also noted that Horizon has cumulatively had a net investment income greater than its dividend obligations, has adequate liquidity sources and is asset sensitive.
Janney Montgomery Scott analyst John Rowan initiated coverage of Stellus Capital (SCM) with a Neutral rating and $11 fair value estimate. The analyst views the company's liquidity favorably and says it is s well positioned from a debt standpoint, given that the rising rate environment is accretive to net income.
Morgan Stanley analyst Elizabeth Porter assumed coverage of ZoomInfo (ZI) with an Overweight rating and $66 price target. Her deep dive analysis gives her increased confidence that ZoomInfo can durably grow revenue 30%-plus over the next three years while also generating 40%-plus operating margins.