Netflix upgrade and several downgrades, and Alarm.com 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:
- Needham analyst Laura Martin upgraded Netflix (NFLX) to Hold from Underperform. The analyst cites the company's decision to adopt a low-priced advertising tier over the next 18-36 months following its reported subscriber losses, though she remains concerned about slowing revenue growth, employee churn, and lower operating margin guidance at Netflix.
- Raymond James analyst C. Gregory Peters upgraded Travelers (TRV) to Market Perform from Underperform without a price target. The analyst believes Travelers is positioned to enter the "sweet spot" of the earnings cycle over the next 24 months and potentially generate elevated ROEs relative to its longer-term target of 15%, which could imply annualized EPS of about $16.20 or more in fiscal 2023.
- Barclays analyst Brian Johnson upgraded Avis Budget (CAR) to Equal Weight from Underweight with a price target of $245, up from $164. The analyst is "incrementally constructive" on the rental car space in an inflationary environment.
- BTIG analyst Carl Reichardt upgraded LGI Homes (LGIH) to Neutral from Sell. The analyst stated that his prior downgrade last month was due to the company's relative reliance on "mom and pop" single-family rental investors for delivery volume, substantial average single price increases compared to other entry-level builders, and high relative valuation compared to peers, but his rating change now is based on valuation following its recent 20% stock price correction.
- JPMorgan analyst Jeremy Tonet upgraded Exelon (EXC) to Overweight from Neutral with a price target of $55, up from $47. In its transition to a pure-play regulated utility, Exelon has refocused its core operations around an "advantaged" transmission and distribution portfolio with leverage to infrastructure renewal efforts across an aging urban network and long-term electrification "tailwinds," Tonet told investors in a research note.
Top 5 Downgrades:
- Bank of America analyst Nat Schindler double downgraded Netflix to Underperform from Buy with a price target of $300, down from $605, after the company reported negative subscriber additions as all regions saw declines in paid net adds except Asia-Pacific. Citing similar reasons, Pivotal Research analyst Jeffrey Wlodarczak double downgraded Netflix to Sell from Buy with a price target of $235, down from $550. Meanwhile, Piper Sandler, JPMorgan, Stifel, Oppenheimer, Atlantic Equities, KG Securities and UBS also downgraded the stock to Neutral-equivalent ratings following quarterly results.
- UBS analyst Steven Fisher downgraded Quanta Services (PWR) to Neutral from Buy with a price target of $145, up from $140. The stock has "appropriately re-rated" over the past 18 months as investors have recognized the structural shift from oil & gas to electric that will require major grid investment, and have quantified the medium-term earnings per share potential associated with this investment, but its risk-reward has now become "balanced," the analyst contended.
- Stephens analyst Cameron Lochridge downgraded Halliburton (HAL) to Equal Weight from Overweight with a price target of $40, up from $37. Following an "impressive run," the stock is now near its highest level since 2018, Lochridge noted.
- Piper Sandler analyst Alexander Goldfarb downgraded American Campus Communities (ACC) to Neutral from Overweight with a price target of $65.50, up from $65, after the company agreed to be acquired by Blackstone (BX) for $65.47 per share in cash.
- RBC Capital analyst Josh Wolfson downgraded IAMGold (IAG) to Underperform from Sector Perform with an unchanged $2.00 price target. The analyst cited RBC's updated precious metal price assumptions and higher cost inflation for producers. Wolfson also downgraded Kinross Gold (KGC) to Sector Perform from Outperform with an unchanged $6.00 price target.
Top 5 Coverage Initiations:
- Bank of America analyst Michael Funk initiated coverage of Alarm.com (ALRM) with a Buy rating and $75 price target. The analyst believes Alarm.com is well positioned to take share in the growing connected home and commercial property analytics markets.
- Goldman Sachs analyst Chris Shibutani initiated coverage of Alkermes (ALKS) with a Buy rating and $35 price target, which implies 20% upside from current levels. The analyst has a bullish view on the sales outlook for Lybalvi, where he believes the Street is underappreciating the potential breadth of product adoption, given real-world treatment dynamics within the antipsychotics market, and thus the drug's peak revenue potential.
- UBS analyst Andrew Monk initiated coverage of Cano Health (CANO) with a Buy rating and $15 price target. The analyst cited "ample white space and strong payor demand" to support the company's path to double its current clinic count of 130 by 2024. Monk also started coverage of Oak Street Health (OSH) with a Neutral rating and a price target of $26.
- Jefferies analyst Linda Tsai initiated coverage of Invitation Homes (INVH) and American Homes (AMH) with Buy ratings and $48 price targets.
- Cowen analyst Max Masucci initiated coverage of Biodesix (BDSX) with an Outperform rating and no price target. The analyst believes the company's $44M market capitalization understates the value of its core intellectual property and liquid biopsy testing capabilities.
Symbols:
CANO INVH OSH BDSX NFLX TRV CAR - $298.00 /
+13.67 (+4.81%)
LGIH EXC PWR HAL ACC IAG ALRM ALKS KGC AMH Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street