Meta Platforms upgrade, Match Group downgrade, and Darden initiation among today's top calls on Wall Street
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Top 5 Upgrades:
- Rosenblatt upgraded Meta Platforms (META) to Buy from Neutral with a price target of $220, up from $104. When the firm had launched coverage of Meta last April, a combination of high spending, weakening macro and ad clouds kept it on the sidelines, but the company’s quarterly results show that "each of these headwinds has pivoted to a tailwind." Piper Sandler and BofA also upgraded Meta Platforms to Buy-following the Q4 results.
- Goldman Sachs upgraded Align Technology (ALGN) to Neutral from Sell with a price target of $307, up from $165. Uncertainty still exists on the macro-outlook, but Align's Q4 report included sequential case growth for the first time in six quarters and management saw stability in the Americas/EMEA regions, the firm says.
- BofA upgraded FedEx (FDX) to Buy from Neutral with a price target of $233, up from $204. BofA is more confident in FedEx's outlook as it reduces excess capacity and enhances productivity. Citi also upgraded FedEx to Buy from Neutral with a price target of $240, up from $190.
- Needham upgraded Okta (OKTA) to Buy from Hold with a $90 price target. The firm believes the company has set conservative guidance for fiscal 2024, calling "for just" 16%-17% revenue growth.
- Summit Insights upgraded Silicon Labs (SLAB) to Buy from Hold. The company is returning to a "growth path after a severe inventory correction in the consumer-related end-market," the firm says.
Top 5 Downgrades:
- Oppenheimer downgraded Match Group (MTCH) to Perform from Outperform without a price target. While the company unveiled an "encouraging" product roadmap and evidence of improved a la carte revenue, the stock is now a "show me story" after losing a record number of paid subscribers, "stoking bear concerns" that online dating is maturing in Europe and the U.S., the firm says.
- BofA downgraded First Solar (FSLR) to Neutral from Buy with a price target of $195, down from $196. Following the stock's outperformance since August, the benefit of the Inflation Reduction Act, or IRA, appears priced in and the potential upside now appears "less compelling," the firm says.
- Argus downgraded Sysco (SYY) to Hold from Buy after its Q2 earnings miss and guidance.
- Loop Capital downgraded Fortune Brands Innovations (FBIN) to Hold from Buy with an unchanged $65 price target. The stock has reached the firm’s prior price target and the first half of 2023 still poses "tough comparisons," Loop Capital notes.
- JMP Securities downgraded Peloton (PTON) to Market Perform from Outperform. The company offers "best in class" connected fitness experience and also reported "solid" results in Q2, but at 22-times expected 2024 EBITDA, the stock's valuation is now full, the firm argues.
Top 5 Initiations:
- Guggenheim initiated coverage of Darden (DRI) with a Buy rating and $170 price target, calling it "one of the best managed restaurant companies.
- Raymond James initiated coverage of Everest Re (RE) with an Outperform rating and $385 price target. The potential of flat-to-declining exposure growth with increasing premiums in its reinsurance segment combined with lower volatility in its growing specialty insurance segment could position Everest Re to report operating ROBEs of 20%+ in 2023 and 2024, the firm says.
- UBS initiated coverage of 10x Genomics (TXG) with a Neutral rating and $50 price target. The firm believes the company is positioned to grow revenue 22% through 2026, in-line with consensus, but sees several possible headwinds, including cannibalization of single cell by spatial platforms.
- B. Riley resumed coverage of OptimizeRx (OPRX) with a Buy rating and $30 price target. The firm sees a favorable risk/reward setup with the shares down 65% in 2022 as the company looks to execute on its core business with large pharma partners and return closer to the 20% growth rates.
- Raymond James initiated coverage of Accolade (ACCD) with an Outperform rating and $15 price target. Accolade shares have retreated roughly 80% off its all-time highs, following the collapse in "digital health" and some company-specific issues, but Raymond James thinks the valuation, strong Q3 results, balance sheet, and easy-to-grasp path to profitability offer an attractive set-up.
Symbols: META ALGN FDX OKTA SLAB MTCH FSLR SYY PTON DRI RE OPRX ACCD
Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street