Target upgrade, Robinhood downgrade and Procter & Gamble 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:
- Gordon Haskett analyst Chuck Grom upgraded Target (TGT) to Buy from Hold with a price target of $300, up from $255, which implies over 30% upside from current levels. Traffic trends in February and March have been "remarkably consistent" at Target and with a later Spring/Easter shift still on the come, these trends could inflect higher in the coming weeks, Grom tells investors in a research note.
- BofA analyst Robert Ohmes upgraded Kroger (KR) to Buy from Neutral with a price target of $75, up from $61. Elevated levels of grocery inflation should continue at least through the first half of 2023, as implied by various commodity indices and fertilizer prices, the analyst tells investors in a research note, though he also sees U.S. consumers as accepting the bulk of price increases given that U.S. hourly earnings are up 6%.
- DA Davidson analyst Linda Bolton Weiser upgraded WD-40 (WDFC) to Neutral from Underperform with a price target of $172, up from $157. The company reported a "big" and surprising Q2 earnings beat, and with the outlook assuming $100-$120 oil, further guidance cuts seem unlikely at this point, the analyst tells investors in a research note.
- UBS analyst Erika Najarian upgraded First Republic (FRC) to Buy from Neutral with a price target of $194, up from $188. First Republic has historically been able to post mid-teens loan growth in different types of rate and economic environments, and this is the type of backdrop when the stock can outperform, Najarian tells investors in a research note, also raising her FY22 EPS view by 15c to $8.40.
- JPMorgan analyst Brian Ossenbeck upgraded C.H. Robinson (CHRW) to Overweight from Neutral with a price target of $117, up from $91. C.H. Robinson shares outperformed asset-based carriers by 14% on average from peak to trough during the last two rate cycles, Ossenbeck tells investors in a research note.
Top 5 Downgrades:
- Goldman Sachs analyst Will Nance downgraded Robinhood (HOOD) to Sell from Neutral with a price target of $13, down from $15. Softening retail engagement levels, particularly among the low-end consumer, continued weakness in account growth, and a "limited path to near term profitability" are likely to limit the stock's outperformance over the next twelve months, Nance tells investors in a research note.
- Credit Suisse analyst Curt Woodworth downgraded Alcoa (AA) to Neutral from Outperform with a price target of $82, up from $68. The analyst believes London Metal Exchange aluminum prices are near peak and says Alcoa continues to deal with inflationary pressures.
- Oppenheimer analyst Timothy Horan downgraded Rackspace Technology (RXT) to Perform from Outperform without a price target. It is increasingly clear that reselling AWS/cloud is low margin and that adding high-margin services takes time, Horan tells investors in a research note.
- BofA analyst Ken Hoexter downgraded UPS (UPS) to Neutral from Buy with a $204 price target amid his downgrade of nine of the 28 stocks in his Transportation coverage given deteriorating demand outlooks and rapidly falling freight rates. Freight market signals have turned "increasingly softer" and suggest demand is waning, and not due to capacity being added, Hoexter tells investors.
- Piper Sandler analyst Kashy Harrison last night downgraded FTC Solar (FTCI) to Neutral from Overweight with a price target of $4, down from $9. The decision by the U.S. Department of Commerce to investigate anti-dumping and countervailing duty circumvention in certain Southeast Asian countries will cause project delays, Harrison tells investors in a research note.
Top 5 Initiations:
- Raymond James analyst Olivia Tong initiated coverage of Procter & Gamble (PG) with an Outperform rating and $175 price target. Strategy and portfolio changes in the last several years have paid off, driving improved top and bottom-line growth, and while the backdrop for consumer staples has become more challenging, Tong believes P&G improved ability to navigate volatility, cushion itself against costs, and focus on innovation position it well to sustain its momentum, the analyst tells investors in a research note.
- RBC Capital analyst Ken Herbert initiated coverage of Raytheon Technologies (RTX) with an Outperform rating and $125 price target. At 65% Defense and 35% Aero, the company is setting a new standard for end market exposure that will benefit from stronger defense fundamentals as well as the commercial aerospace recovery, the analyst tells investors in a research note.
- Needham analyst David Saxon initiated coverage of Alcon (ALC) with a Buy rating and $95 price target. The analyst believes the company has visibility into sustainable mid-single digit or better revenue growth driven by key products in implantables, contact lenses, and ocular health.
- Cantor Fitzgerald analyst Josh Siegler initiated coverage of StoneCo (STNE) with an Overweight rating and $15 price target. While Siegler believes Brazilian inflation will remain elevated in 2022E, he thinks the stock has overcorrected, and feels the market may be overlooking the company's ability to limit the financial expense impact through higher prepayment fees, the analyst tells investors in a research note.
- Truist analyst Neal Dingmann initiated coverage of Crescent Energy (CRGY) with a Buy rating and $24 price target. The analyst is positive on the company's "diversified" solid asset base and "stable" production and cash flow, along with a "notable accretive" acquisition track record.
Symbols:
HOOD AA RXT KR TGT - $228.21 /
+12.21 (+5.65%)
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