The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.
Top 5 Upgrades:
- BofA upgraded JetBlue (JBLU) to Neutral from Underperform with a price target of $6, up from $3. As travel demand measured by TSA throughput has been stable in recent weeks and domestic capacity continues to moderate, coinciding with falling fuel prices, the firm views recent trends as an industry tailwind and sees JetBlue's positioning as further supported by self-help measures.
- JPMorgan upgraded U.S. Steel (X) to Overweight from Neutral with a price target of $42, up from $40. Following a period of underperformance amid weakening fundamentals, the firm thinks the risk/reward is more favorable for North American steel equities "as investors will begin to positively discount an improved rate environment and stable post-election backdrop in 2025." Additionally, JPMorgan upgraded Nucor (NUE) to Overweight from Neutral and Steel Dynamics (STLD) to Neutral from Underweight. Meanwhile, GLJ Research also double upgraded U.S. Steel to Buy from Sell with a $38.57 price target.
- Wedbush upgraded LGI Homes (LGIH) to Neutral from Underperform with a price target of $125, up from $97. The firm's catalysts include the sequential improvement in monthly absorption from July to August, the 12% pullback from July 30 to September 6 in LGI's share price, the potentially positive cash flow reversal, and the steady declines in mortgage rates thus far in Q3.
- Jefferies upgraded ExlService (EXLS) to Buy from Hold with a price target of $42, up from $35. The firm says it is starting to get more positive on the IT services industry with demand having potentially bottomed out and poised to improve in 2025.
- Stifel upgraded Celestica (CLS) to Buy from Hold with an unchanged price target of $58. The firm says the shares remain compelling at current levels.
Top 5 Downgrades:
- Deutsche Bank downgraded Colgate-Palmolive (CL) to Hold from Buy with a price target of $109, up from $107, as the firm is "treading lightly into autumn" on the consumer-packaged goods group.
- Morgan Stanley downgraded Church & Dwight (CHD) to Equal Weight from Overweight with an unchanged price target of $110. The firm sees Church & Dwight as fairly valued after the stock's stock outperformance.
- JPMorgan downgraded HII (HII) to Neutral from Overweight with a price target of $285, up from $280. The firm still sees long-term opportunity for the company based on strong demand for Navy ships, but says this will require better labor productivity at HII and its suppliers.
- RBC Capital downgraded Invitation Homes (INVH) to Sector Perform from Outperform with a price target of $36, down from $37. The company's Q3 leasing spreads show further deceleration, and its renewals show a higher level of tenant push back on rate increases, the firm tells investors in a research note. RBC Capital also downgraded Camden Property (CPT) to Sector Perform from Outperform with an unchanged price target of $122.
- KeyBanc downgraded National Storage (NSA) to Sector Weight from Overweight without a price target. The firm is "relatively cautious" that fundamentals within National Storage's portfolio in the near term will continue to lag versus peers as the demand environment remains weaker than thought.
Top 5 Initiations:
- New Street initiated coverage of Block (SQ) with a Neutral rating and $70 price target. The firm says Square's turnaround won't come before early 2025 as the company's "flywheel trials" in local and food and beverage "are in their infancy."
- JPMorgan initiated coverage of GE HealthCare (GEHC) with a Neutral rating and $90 price target. While the firm sees potential for revenue and free cash flow acceleration, at current valuation multiples, it views the shares as appropriately valued relative to the peer group and commensurate with the company's mid-single-digit organic growth profile.
- JMP Securities initiated coverage of Jasper Therapeutics (JSPR) with an Outperform rating and $70 price target. The firm says briquilimab represents a new biologic for a "well-established and derisked" target that is relevant to several pathologies with large, underserved patient populations.
- Jefferies initiated coverage of BBB Foods (TBBB) with a Hold rating and $33 price target. The firm believes the stock's valuation reflects the company's high growth prospects.
- Morgan Stanley initiated coverage of Merchants Bancorp (MBIN) with an Equal Weight rating and $54 price target. The firm cites the company's higher commercial real estate exposure and lower stock float for the neutral rating.