SolarEdge upgrade, Paramount downgrade and Roku initiations 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:
- Oppenheimer analyst Colin Rusch upgraded SolarEdge (SEDG) to Outperform from Perform with a $334 price target as he finds it demonstrating a highly defensible technology position poised for outsized growth despite trading at levels with a compelling risk/reward profile. He believes the global solar industry will grow 3-5-times over the next decade and that SolarEdge will be a key beneficiary, enjoying easing supply headwinds and incremental operating leverage.
- Oppenheimer analyst Colin Rusch upgraded Wolfspeed (WOLF) to Outperform from Perform with a $105 price target. While the analyst expects some inefficiency in Wolfspeed's Mohawk Valley ramp, the company should work through any yield issues in an expedited manner, resulting in steady margin improvement.
- UBS analyst Joshua Spector upgraded Ecolab (ECL) to Buy from Neutral with a price target of $205, up from $186. The analyst believes the company's earnings revisions have troughed and sees upside potential to 2023 consensus estimates.
- Credit Suisse analyst Andrew Kligerman upgraded Reinsurance Group of America (RGA) to Neutral from Underperform with a price target of $122, up from $80, on valuation and improving COVID conditions.
- Bank of America analyst Joshua Dennerlein upgraded Agree Realty (ADC) to Buy from Neutral with a price target of $78, up from $76. The analyst believes "more defensive" net lease real estate investment trusts will outperform given the market's focus on tightening monetary conditions and rising recession risks. Dennerlein also upgraded Americold Realty Trust (COLD) to Neutral from Underperform with a price target of $30, up from $28.
Top 5 Downgrades:
- Wolfe Research analyst Peter Supino downgraded Paramount (PARA) to Underperform from Outperform with a price target of $24, down from $49, as he assumed coverage of the stock. Paramount, which was late to streaming with a broad-based direct-to-consumer service, is "playing catch-up" to gain share in an increasingly competitive landscape while its content is perceived as a tier below the "top 3 must-haves," Netflix (NFLX), Disney (DIS) and Warner Bros. Discovery (WBD), Supino told investors.
- Wolfe Research analyst Peter Supino downgraded Comcast (CMCSA; CMCSK) to Peer Perform from Outperform with a price target of $50, down from $63, as he assumed coverage of the stock. Comcast is "cheap and resilient," but he sees more risk to the second half and 2023 consensus for broadband and advertising.
- Wolfe Research analyst Peter Supino downgraded Fox Corp. (FOX; FOXA) to Peer Perform from Outperform with a price target of $39, down from $52, as he assumed coverage of the stock. Fiscal 2023 catalysts are already "baked-into consensus estimates" and while sports and news hold up the pay-TV bundle, they "too are leaky buckets," Supino argued.
- Piper Sandler analyst Thomas Champion downgraded Snap (SNAP) to Neutral from Overweight with a price target of $18, down from $30. Champion is concerned about Snap in a worsening market. He also downgraded Pinterest (PINS) to Neutral from Overweight with a price target of $23, down from $35.
- Barclays analyst Ryan MacWilliams downgraded Twilio (TWLO) to Equal Weight from Overweight with a price target of $110, down from $175. The analyst thinks the core API business potentially will face challenges due to a slowing digital economy and had hoped to see better progress with Segment/Engage at this point.
Top 5 Coverage Initiations:
- Wolfe Research analyst Peter Supino initiated coverage of Roku (ROKU) with a Peer Perform rating and $101 price target. He expects its growth costs to reaccelerate as Roku expands beyond its existing six non-U.S./Canadian markets and he models 2023 results below consensus.
- Wolfe Research analyst Peter Supino initiated coverage of T-Mobile (TMUS) with an Outperform rating and $159 price target. T-Mobile is the leader in mobile's growing premium value segment, the Sprint merger continues to beat milestones, and he models 2023 results ahead of consensus.
- Wolfe Research analyst Peter Supino initiated coverage of Lionsgate (LGF.A; LGF.B) with an Outperform rating and $14 price target based on his sum-of-the-parts valuation. Lionsgate is exploring strategic options for Starz, which should help unlock shareholder value, given that recent studio acquisitions have been going for high-teens EV/EBITDA take-out multiples, Supino told investors.
- Evercore ISI analyst Sheriq Sumar assumed coverage of FleetCor Technologies (FLT) with an Outperform rating and $300 price target, which implies 21% upside. The analyst expects FleetCor to deliver double-digit earnings growth in the medium term with "multiple secular and cyclical tailwinds" driving double digit organic revenue growth and margin expansion.
- Evercore ISI analyst Sheriq Sumar assumed coverage of Wex (WEX) with an Outperform rating and $230 price target, which implies 35% upside. Sumar expects Wex to deliver double-digit earnings growth in the medium term with "multiple secular and cyclical tailwinds" driving double digit organic revenue growth and margin expansion.
Symbols:
SEDG - $288.40 /
+16.08 (+5.90%)
WOLF ECL RGA - $125.86 /
+0.655 (+0.52%)
ADC COLD PARA NFLX DIS FOX FOXA SNAP PINS CMCSA CMCSK TWLO ROKU TMUS - $134.72 /
+0.185 (+0.14%)
LGF.A LGF.B FLT - $242.89 /
+0.165 (+0.07%)
WEX WBD Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street