Bath & Body Works upgrade, KeyCorp downgrades and CarMax 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:
- Cowen analyst Jonna Kim upgraded Bath & Body Works (BBWI) to Outperform from Market Perform with an $82 price target after taking over coverage of the name. The analyst likes the company's growth prospects relative to the stock's valuation and "long-term advantages" based on its product innovation, customer retention, and "efficient" marketing spend.
- Wells Fargo analyst Stan Berenshteyn upgraded Accolade (ACCD) to Equal Weight from Underweight with a price target of $6, down from $9. The analyst noted shares traded down about 50% on April 29 following downward revision to long-term growth targets and loss of a key client.
- Bank of America analyst Rafe Jadrosich upgraded Mohawk Industries (MHK) to Neutral from Underperform with a price target of $150, up from $125. The analyst cited the company's pricing outlook, stating that while Mohawk continues to face macro and inflationary headwinds, he sees the downside as limited based on its "significant" price increases.
- Piper Sandler analyst R. Scott Siefers upgraded Comerica (CMA) to Overweight from Neutral with a price target of $94, up from $90. The stock is down nearly 10% since reporting earnings, said the analyst, who boosted estimates on Comerica's hedging strategy.
- Raymond James analyst C. Gregory Peters upgraded Arthur J. Gallagher (AJG) to Strong Buy from Outperform with a price target of $195, up from $185. The analyst also raised his 2022 and 2023 adjusted EPS estimates, reflecting management's updated organic growth guidance as well as the strong first quarter insurance broker peer group results.
Top 5 Downgrades:
- Piper Sandler analyst R. Scott Siefers downgraded KeyCorp (KEY) to Underweight from Neutral with a price target of $20.50, down from $23. Among the large regionals, KeyCorp's uncertainty around the degree of fee recovery that may be required to meet expectations could limit the stock, especially within the context of a macro environment that "seems only to be getting more uncertain," Siefers told investors in a research note.
- Piper Sandler analyst Alexander Twerdahl downgraded Community Bank System (CBU) to Underweight from Neutral with a price target of $66, down from $74. The analyst sees "several headwinds on the horizon" that could dampen earnings growth for Community Bank.
- Evercore ISI analyst Samantha Hoh downgraded U.S. Silica (SLCA) to In Line from Outperform with a price target of $20, up from $16, citing valuation on the view that shares appear fully valued based on her 2023 EBITDA estimate.
- B. Riley analyst Daniel Day downgraded Shenandoah Telecommunications (SHEN) to Neutral from Buy with a price target of $21, down from $29, following first quarter results. The analyst cited the stock's "stretched valuation relative to peers," a lack of catalysts over the next year, and uncertainty around where near-term EBITDA will shake out due to expected T-Mobile (TMUS) churn in the tower and commercial fiber segments in the coming quarters.
- BMO Capital analyst Mark Wilde downgraded Weyerhaeuser (WY) to Market Perform from Outperform with an unchanged $42 price target. The stock is trading at a 15% premium to his net asset value estimate, and while shares could trade higher with strong lumber/panel markets and amid ESG interest, the risk now look "balanced" with further upside seen as limited, the analyst contended.
Top 5 Coverage Initiations:
- Needham analyst Chris Pierce initiated coverage of CarMax (KMX) with a Hold rating. The company is incurring higher costs as it adopts an omni-channel strategy in response to stepped up competition from digitally native competitors that is causing the used vehicle industry to shift from fully offline to more online, the analyst told investors in a research note.
- Bank of America analyst Andrew Obin initiated coverage of Johnson Controls (JCI) with a Buy rating and $85 price target. After a number of "transformative" deals, Johnson Controls has emerged as a leader in HVAC, building controls, fire and safety equipment, services and software, Obin contended.
- JPMorgan analyst Rajat Gupta initiated coverage of Cazoo (CZOO) with a Neutral rating and no price target. The analyst sees potential for strong multi-year unit growth as Cazoo's business scales but sees "many near-term risks," including inflation and geopolitics.
- Cowen analyst Yaron Werber initiated coverage of Genmab (GMAB) with a Market Perform rating and $38 price target. While the analyst expects 18% revenue and 16% earnings per share compound annual growth rates from 2021-2026, he would prefer to wait for a better entry point given what he sees as a lack of meaningful catalysts and "modest expectations" for Genmab and AbbVie's (ABBV) epcoritamab.
- Craig-Hallum analyst Eric Des Lauries initiated coverage of Urban-Gro (UGRO) with a Buy rating and $15 price target. The analyst believes Urban-Gro's "dramatic transformation" over the past year is misunderstood by market.
Symbols:
BBWI ACCD MHK CMA AJG KEY CBU SLCA SHEN TMUS WY KMX JCI CZOO GMAB UGRO ABBV Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street