Cooper Companies upgrade, Crowdstrike downgrade, and Rivian Automotive 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:
- Baird analyst Jeff Johnson upgraded Cooper Companies (COO) to Outperform from Neutral with a price target of $375, up from $345. The analyst has been encouraged by recent "still-healthy" contact lens end-market checks and sees pricing tailwinds next year.
- BofA analyst Julien Dumoulin-Smith upgraded Consolidated Edison (ED) to Neutral from Underperform with a price target of $95, up from $78, after "substantial updates" to the outlook this year.
- Jefferies analyst Chris Howerton upgraded Avadel Pharmaceuticals (AVDL) to Buy from Hold with a price target of $11, up from $6.50, as he increased his estimate of the peak patients expected to eventually be on Lumryz after having surveyed 11 sleep doctors and speaking with two high volume key opinion leaders from that group.
- KGI Securities analyst Derek Chang upgraded Skyworks Solutions (SWKS) to Outperform from Neutral with a $130 price target.
- Cantor Fitzgerald analyst Brett Knoblauch upgraded SoundHound (SOUN) to Overweight from Neutral with a price target of $2.20, down from $2.30. Knoblauch believes the value at which SoundHound went public in April was "overly optimistic, but thinks the 87% pullback in shares since then and a 30.2% pullback since reporting Q3 results on November 10 have resulted in a much better risk-reward profile.
Top 5 Downgrades:
- Stifel analyst Brad Reback downgraded Crowdstrike (CRWD) to Hold from Buy with a price target of $120, down from $225. The company posted a "disappointing quarter," with a sales beat well below historical trends and its first annual recurring revenue miss, Reback tells investors in a research note.
- BofA analyst Nat Schindler downgraded Carvana (CVNA) to Neutral from Buy with a price target of $10, down from $43, citing concerns about its cash burn and liquidity.
- Morgan Stanley analyst Michael Cyprys downgraded LPL Financial (LPLA) to Equal Weight from Overweight with a price target of $239, down from $281. The analyst also removed the shares from the firm's "Financials Finest List."
- Wolfe Research analyst Keegan Carl downgraded American Homes 4 Rent (AMH) and Invitation Homes (INVH) to Peer Perform from Outperform after assuming coverage of the names. The sector "has had a great run since the onset of the pandemic," but will face a number of challenges which will impact 2023 earnings growth, Carl tells investors in a research note.
- Piper Sandler analyst Charles Neivert downgraded Nutrien (NTR) to Neutral from Overweight with a price target of $93, down from $115. The analyst cites the company's Q3 earnings miss and a cut in guidance, along with his update on expectations for potash markets for 2023 and beyond.
Top 5 Initiations:
- Evercore ISI analyst Chris McNally initiated coverage of Rivian Automotive (RIVN) with an In Line rating and $35 price target. Though he started the stock with an In Line rating this is "with a positive bias" as he believes a catalyst path exists progressing through 2023, McNally added. McNally also started coverage of Lucid Group (LCID) with an In Line rating and $12 price target, and Fisker (FSK) with an Outperform rating and $15 price target.
- Jefferies analyst Brent Thill initiated coverage of DocuSign (DOCU) with a Hold rating and $50 price target. The company faces negative near-term catalysts from demand digestion, macro headwinds and go-to-market execution issues, Thill tells investors in a research note.
- Redburn analyst Alexander Brignall initiated coverage of five U.S. hotel stocks with a cautious, but "glass-half-full" view on potential upside from travel demand. Hyatt (H) is his top pick, with his only Buy rating among the group, as he started Wyndham Hotels & Resorts (WH) and Hilton (HLT) with Neutral ratings, and Choice Hotels (CHH) and Marriott (MAR) with Sell ratings.
- Jefferies analyst Andrew Uerkwitz initiated coverage of AppLovin (APP) with a Hold rating and $14 price target. The analyst does not believe mobile advertising "is broken long-term following platform privacy changes," but he does expect 2023 to be "another tough year" as the industry continues to "reorient itself." Uerkwitz's estimates re below the Street on AppLovin's own games business.
- Citi analyst Christian Wetherbee reinstated coverage of XPO Logistics (XPO) with a Neutral rating and $42 price target following a period of restriction. While the stock's valuation "remains compelling," macro headwinds will likely dampen tonnage growth, even with XPO's easier comps than peers, Wetherbee tells investors in a research note.
Symbols: COO AVDL SWKS ED SOUN CRWD CVNA LPLA AMH NTR INVH RIVN LCID DOCU APP XPO H WH HLT CHH MAR
Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street