Walgreens Boots Alliance upgrade, Airbnb downgrade, and Intel resumption 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:
- Cowen analyst Charles Ryhee upgraded Walgreens Boots Alliance (WBA) to Outperform from Market Perform with a price target of $54, up from $43. The company's transformation into a healthcare services business accelerates its transition way from U.S. retail, Ryhee tells investors in a research note.
- Baird analyst Colin Sebastian upgraded Activision Blizzard (ATVI) to Outperform from Neutral with an unchanged price target of $95. The analyst cites improving product momentum and valuation for the upgrade but says the main driver of the share price remains the pending takeover by Microsoft (MSFT).
- Jefferies analyst David Kelley upgraded Sensata (ST) to Buy from Hold with a price target of $54, up from $43. Management has invested heavily in megatrends led by electrification and connectivity/ telematics, giving it end market positioning that is "favorable into a downturn," Kelley tells investors.
- JPMorgan analyst Michael Rehaut upgraded Toll Brothers (TOL) to Overweight from Neutral with a price target of $58, up from $47. Approaching 2023, the analyst is moving to a positive sector stance on the homebuilders.
- William Blair analyst Brandon Vazquez upgraded Neogen (NEOG) to Outperform from Market Perform without a price target. Conversations with management left the analyst "encouraged for upside and potentially accelerated growth" of the combined Neogen, 3M food safety business.
Top 5 Downgrades:
- Baird analyst Colin Sebastian downgraded Airbnb (ABNB) to Neutral from Outperform with a price target of $100, down from $120. Despite a positive long-term view on Airbnb, in the short-term Sebastian is "more concerned" about risks to discretionary travel spend and to average daily rates from inflationary and recessionary pressures along with potential disruptions to bookings from the company's all-in pricing beginning next month.
- Baird analyst Colin Sebastian downgraded Carvana (CVNA) to Neutral from Outperform with a price target of $7, down from $30. The analyst has concerns over Carvana's capacity to cut overhead costs and operating expenses as fast as needed. Cowen analyst John Blackledge also downgraded Carvana to Market Perform from Outperform with a $10 price target.
- Cowen analyst John Blackledge downgraded Wayfair (W) to Market Perform from Outperform with a price target of $38, down from $80. The analyst reduced revenue and EBITDA estimates through 2031 on macro headwinds and concerns about consumer demand for the home category in 2023.
- Cowen analyst John Blackledge downgraded Lyft (LYFT) to Market Perform from Outperform with a price target of $14, down from $36. Near-term challenges include higher insurance costs, which could persist due to inflationary pressures, the potential for revenue per rider to be affected by a weaker consumer environment and a regulatory overhang, Blackledge says.
- Credit Suisse analyst Bill Katz downgraded Blackstone (BX) to Underperform from Neutral with a price target of $67.50, down from $85.50. Blackstone faces decelerating contribution from its retail platform, says Katz, who cut distributable earnings estimates for fiscal 2023 and 2024 and believes consensus numbers are "too high."
Top 5 Initiations:
- Mizuho analyst Vijay Rakesh resumed coverage of Intel (INTC) with a Neutral rating and $32 price target. While the company is regaining some share in PCs, in the key high-margin server/data center segment it continues to see market-share loss into 2023, Rakesh tells investors in a research note.
- Wolfe Research analyst Greg Badishkanian initiated coverage of Procter & Gamble (PG) with an Outperform rating and $156 price target. Badishkanian expects demand elasticities to beat expectations as brand investments and innovation drive wallet share to P&G.
- Wolfe Research analyst Greg Badishkanian initiated coverage of Colgate-Palmolive (CL) with a Peer Perform rating and no price target. While Badishkanian feels both the Pet and Oral Care businesses are underappreciated and the activist involvement should provide some downside protection, normalizing demand elasticities, significant international exposure and a rich valuation keep him on the sidelines.
- Credit Suisse analyst Rich Hilliker initiated coverage of Intuit (INTU) with an Outperform rating and $500 price target. The "platform of platforms" has line of sight to double-digit revenue growth and free cash flow margin for next decade given that it is in the early days of "deep cross functional integration" and leveraging its "brand bawn to unlock network flywheel and monetization," Hilliker tells investors.
- Credit Suisse analyst Rich Hilliker initiated coverage of Dropbox (DBX) with an Underperform rating and $20 price target. Dropbox's investment level, efficiency, and sales productivity are falling, its ARR and ARPU are trending lower, and its net paid customer adds are gradually slowing, the analyst says.
Symbols:
WBA ATVI MSFT ST NEOG ABNB CVNA W LYFT BX INTC PG CL INTU DBX TOL Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street