Roku upgrade, MasterCard downgrade, and Lululemon 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:
- MoffettNathanson analyst Michael Nathanson upgraded Roku (ROKU) to Neutral from Sell with a $100 price target. The analyst is now in line with consensus expectations for Roku and is "no longer massively below" 2025 estimates. Roku's profitability picture "has come into brighter light," Nathanson tells investors in a research note.
- BofA analyst Robert Ohmes double upgraded Sprouts Farmers Market (SFM) to Buy from Underperform with a price target of $40, up from $21. He sees significant potential for EPS upside as compounding food inflation supports Sprouts accelerating its price increases, Ohmes tells investors.
- Piper Sandler analyst Jeff Garro upgraded Iqvia (IQV) to Overweight from Neutral with a price target of $255, up from $231, following the company's Q1 results as he took over coverage of the stock. He believes the investor response to slower public equity funding of early stage biopharma is overblown and presents a buying opportunity in Iqvia, whose "wide, deep, and global data assets are meaningfully ahead of competitors," the analyst tells investors.
- BofA analyst Rafe Jadrosich upgraded Fortune Brands (FBHS) to Neutral from Underperform with a price target of $84, up from $74, after the company announced plans to spinoff its cabinets business, which he believes could unlock value. In addition, the company exited Q1 with a healthier price-cost trend than he had anticipated and margins should keep improving, Jadrosich tells investors.
- Stifel analyst Ian Parkinson upgraded Lundin Mining (LUNMF) to Buy from Hold with an unchanged price target of C$14 based on valuation and updating his model to include the acquisition of Josemaria, which he sees bringing "a step change" on the company's copper production profile. Canaccord analyst Dalton Baretto also upgraded Lundin Mining to Buy from Hold with a price target of C$14, up from C$13.50, following the release of the company's Q1 results.
Top 5 Downgrades:
- Piper Sandler analyst Christopher Donat downgraded MasterCard (MA) to Underweight from Neutral with a price target of $357, down from $360. The analyst cites macro challenges, especially in Europe, for the downgrade. Donat is increasingly concerned that Europe could enter a recession in 2023, which he says would be negative for the payment transactions that drive revenue for both Mastercard and Visa (V).
- Morgan Stanley analyst Ricky Goldwasser downgraded Accolade (ACCD) to Equal Weight from Overweight with a price target of $9, down from $30. The market was bracing for a lower fiscal 2023 outlook, but the news that Accolade lost its marquee customer Comcast (CMCSA) "was an unexpected blow," Goldwasser tells investors in a research note. Credit Suisse analyst Jonathan Yong also downgraded Accolade to Neutral from Outperform with a price target of $9, down from $33. The company's reduced its topline expectations for fiscal 2023 due to Comcast's notification to end its service relationship at the end of 2022 as well as other macro-environment factors, Yong tells investors in a research note. Additionally, SVB Leerink analyst Stephanie Davis downgraded Accolade to Market Perform from Outperform with a price target of $8, down from $32.
- KeyBanc analyst Kenneth Zener downgraded Fortune Brands to Sector Weight from Overweight without a price target. While the company modestly raised fiscal 2022 guidance and expects to spinoff its cabinet business in early 2023, the shares offer a "less compelling short-term risk-to-return ratio, as unit growth is slowing," Zener tells investors.
- Craig-Hallum analyst Alex Fuhrman downgraded 1-800-Flowers.com (FLWS) to Hold from Buy with a price target of $12, down from $35, following the company's weaker-than-expected earnings and guidance. Given the impact of inflation on consumers, and the fact that there are no key holidays between Mother's Day in a week and a half and Thanksgiving in over six months, results are likely to get worse in the September quarter before they get any better, Fuhrman tells investors.
- BofA analyst Jessica Reif Ehrlich downgraded Comcast (CMCSA) to Neutral from Buy with a price target of $50, down from $67. After years of limited competition, ramping fixed wireless access deployments and accelerating fiber builds present "real threats" to Comcast's broadband subscriber business.
Top 5 Initiations:
- Wedbush analyst Tom Nikic initiated coverage of lululemon (LULU) with an Outperform rating and $430 price target. The analyst views view the company as a "core holding" in the apparel/footwear space, saying it is likely to continue benefiting from the secular macro-trend towards athleisure/casual apparel.
- Cantor Fitzgerald analyst Louise Chen initiated coverage of Roivant Sciences (ROIV) with an Overweight rating and $15 price target. Roivant Sciences appears to be valued at merely cash plus Dermavant, and Chen thinks the peak sales potential of the rest of Roivant's pipeline is underappreciated and that upwards earnings estimate revisions could drive the stock higher, the analyst tells investors in a research note.
- Wedbush analyst Tom Nikic initiated coverage of Crocs (CROX) with an Outperform rating and $90 price target. The decline in the shares on the "tough compare" thesis "appears to be drastically over-done," Nikic tells investors in a research note.
- UBS analyst Susy Tibaldi initiated coverage of Zegna (ZGN) with a Neutral rating and $11 price target. The analyst states that while she sees "clear growth opportunities for Zegna and Thom Browne," her "conservative" view on profitability and expectation of higher investment needs implies a balanced risk-reward.
- RBC Capital analyst Shelby Tucker initiated coverage of Constellation Energy (CEG) with an Outperform rating and $72 price target. If passed, the Section 45 federal production credit could "lock in a high floor value for nuclear power plants," Tucker tells investors in a research note.
Symbols:
ROKU MA V ACCD CMCSA LULU SFM FBHS ROIV FLWS - $10.37 /
-1.875 (-15.31%)
CROX IQV - $219.55 /
+9.395 (+4.47%)
LUNMF ZGN CEG Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street