Kroger upgrade, Coinbase downgrade and Marqeta 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 Michael Montani upgraded Kroger (KR) to Outperform from In Line with a price target of $56, up from $49. The analyst sees a favorable risk/reward for Kroger given his view that food inflation will be "higher for longer with trade-down into food at home categories."
- BofA analyst Derik de Bruin upgraded Icon (ICLR) to Buy from Neutral with a price target of $260, down from $265. The analyst has more confidence in the company's ability to deliver on its targets.
- Janney Montgomery Scott analyst Christopher Marinac upgraded First Bancshares (FBMS) to Buy from Neutral with a fair value estimate of $39, up from $33.50. He is now confident in forward fundamentals at the company and "comfortable" the company can achieve EPS above Street expectations.
- Barrington analyst Michael Petusky upgraded Anika Therapeutics (ANIK) to Outperform from Market Perform with a $31 price target post the "solid" third quarter results.
- OTR Global upgraded its view on Macy's (M) to Positive from Mixed, citing its checks.
Top 5 Downgrades:
- Daiwa analyst Carlton Lai downgraded Coinbase (COIN) to Neutral from Buy with a price target of $52, down from $82, after Sam Bankman-Fried "shocked the crypto community" by announcing a non-binding agreement with Binance for "what is essentially a bailout acquisition."
- Northcoast analyst John Healy downgraded Lyft (LYFT) to Neutral from Buy following the Q3 report. The company faces a difficult road toward profitability and lacks upcoming catalysts, Healy tells investors in a research note.
- Northland analyst Tim Savageaux downgraded Lumentum (LITE) to Market Perform from Outperform with a price target of $65, down from $120. The company offered a much lower than expected guide for the second quarter and fiscal 2023 despite an in line Q1, Savageaux tells investors in a research note.
- BofA analyst Peter Galbo downgraded Tyson Foods (TSN) to Underperform from Neutral with a price target of $61, down from $73, ahead of the fiscal Q4 report next week.
- Wells Fargo analyst Steven Cahall double downgraded Gray Television (GTN) to Underweight from Overweight with a price target of $7, down from $25. The company is carrying more leverage than its broadcast peers due to station acquisitions from late 2021, Cahall tells investors in a research note. The analyst also downgraded Nexstar (NXST) to Equal Weight from Overweight with a price target of $175, down from $227.
Top 5 Initiations:
- DA Davidson analyst Christopher Brendler initiated coverage of Marqeta (MQ) with a Neutral rating and $7.25 price target. The analyst notes concerns over the CEO resignation ahead of a massive contract renewal have weighed on the shares, but he is "more optimistic" and believes that the market underestimates Marqeta's "broad and sustainable" competitive advantages.
- Wells Fargo analyst Eric Luebchow initiated coverage of IHS Holding (iHS) with an Overweight rating and $12 price target. As more shares come to market, Luebchow sees significant upside opportunity to broaden the investor base and focus on its attractive fundamentals -- including an 11% organic revenue growth CAGR through 2025; share repurchase optionality; and margin expansion as it reduces its diesel fuel exposure.
- Barclays analyst Tim Long initiated coverage of Garmin (GRMN) with an Equal Weight rating and $97 price target. The company's its verticals are no longer benefiting from COVID while competitive and macro risks "are looming," Long tells investors in a research note.
- Maxim analyst Allen Klee initiated coverage of HeartSciences (HSCS) with a Buy rating and $8.00 price target. The analyst cites the upcoming catalysts for HeartSciences, including an application to the FDA by April 2023 with formal approval possibly in late 2023 to early 2024.
- Ascendiant analyst Edward Woo initiated coverage of NRx Pharmaceuticals (NRXP) with a Buy rating and $4 price target. The analyst sees large market opportunities for NRX-101 to treat mental health disorders.
Symbols: KR ICLR FBMS ANIK M COIN LYFT LITE TSN GTN MQ IHS GRMN NRXP HSCS
Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street