Shopify upgrade, PayPal downgrade and BuzzFeed coverage initiation 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:
- William Blair analyst Matthew Pfau upgraded Shopify (SHOP) to Outperform from Market Perform without a price target. With the recent selloff in the software-as-a-service space, Shopify's valuation has "come down to a more reasonable level," Pfau argued.
- Evercore ISI analyst Mark Mahaney upgraded DoorDash (DASH) to Outperform from In Line with a $256 price target and also added the stock to the firm's Tactical Action & Positioning, or TAP, Outperform List. He noted that DoorDash is "dislocated" as the shares are off 40% and now trade at close to a trough multiple.
- Barclays analyst Raimo Lenschow upgraded Snowflake (SNOW) to Overweight from Equal Weight with a price target of $367, down from $393. The analyst believes the recent selloff in the shares creates an attractive entry point.
- BMO Capital analyst Gerrick Johnson upgraded Take-Two Interactive (TTWO) to Outperform from Market Perform with an unchanged price target of $180. The pending acquisition of Zynga (ZNGA) will help "smooth" Take-Two's earnings variability while offering "compelling synergy opportunities," Johnson contended.
- Piper Sandler analyst R. Scott Siefers upgraded Wells Fargo (WFC) to Overweight from Neutral with a price target of $64, up from $50. The analyst believes Wells has an "inflecting" net interest income stream with good positioning for interest higher rates.
Top 5 Downgrades:
- Jefferies analyst Trevor Williams downgraded PayPal (PYPL) to Hold from Buy with a price target of $200, down from $255. The analyst sees little room for multiple expansion with the shares still trading five-times above pre-COVID valuation averages.
- Piper Sandler analyst Christopher Raymond downgraded Biogen (BIIB) to Neutral from Overweight with a price target of $216, down from $362. The analyst believes the Centers for Medicare and Medicaid Services' draft decision announced Tuesday night is "restrictive."
- Wolfe Research analyst Hunter Keay downgraded Southwest (LUV) to Peer Perform from Outperform. The analyst cited valuation while noting that the recent industry-wide cost problems lately suggest that 2026 CASMx outlook wasn't "as much of a sandbag" as it may seem.
- Jefferies analyst Trevor Williams downgraded Fiserv (FISV) to Hold from Buy with a price target of $115, down from $120. The analyst is taking a "more selective" approach for 2022 in the payments, processors and IT services sector and prefers shares of Global Payments (GPN) and FIS (FIS) to Fiserv.
- Wells Fargo analyst Eric Luebchow downgraded Cogent (CCOI) to Underweight from Equal Weight with a price target of $65, down from $75. The analyst sees a "challenging setup" for the shares given the company's weak growth and high multiple.
Top 5 Coverage Initiations:
- Craig-Hallum analyst Jason Kreyer initiated coverage of BuzzFeed (BZFD) with a Buy rating and $7.50 price target. The analyst highlighted BuzzFeed's unique approach to content creation and monetization that captures mindshare of millennial audiences.
- Macquarie analyst Erica Chen initiated coverage of Nio (NIO) with an Outperform rating and $37.70 price target. The analyst forecasts 31% annual electric vehicle unit sales growth for China and 52% annual revenue growth for Nio through 2024.
- Berenberg analyst Sunil Rajgopal initiated coverage of Squarespace (SQSP) with a Buy rating and $42 price target.
- Morgan Stanley analyst Kristine Liwag initiated coverage of Rocket Lab (RKLB) with an Overweight rating and $17 price target. The "space race is back," and Rocket's track record of launching more than 100 satellites into orbit is a stand-out among its peers, Liwag contended.
- Evercore ISI analyst John Pancari assumed coverage of American Express (AXP) with an In Line rating and $177 price target. The analyst argued that while the company is playing the "long game" by investing in its business to appeal to a broader customer base, while deepening its product set, the stock fairly discounts this outlook after its recent outperformance.
Symbols:
SHOP - $1,166.00 /
+8.32 (+0.72%)
DASH SNOW TTWO - $153.73 /
+5.505 (+3.71%)
ZNGA WFC PYPL BIIB LUV FISV GPN - $147.89 /
-1.025 (-0.69%)
FIS CCOI BZFD NIO SQSP RKLB AXP - $176.25 /
+0.865 (+0.49%)
Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street