Tractor Supply upgrade, Netflix downgrade and Chesapeake Energy 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:
- Bank of America analyst Elizabeth Suzuki upgraded Tractor Supply (TSCO) to Buy from Neutral with a price target of $260, up from $250. Tractor Supply continues to beat expectations and she expects consumables, like pet and animal feed and home/vehicle maintenance essentials, to earn a higher share of wallet as U.S. consumers shift their spending toward non-discretionary categories over discretionary products.
- Deutsche Bank analyst Sidney Ho upgraded NetApp (NTAP) to Buy from Hold with a price target of $84, down from $90. The analyst upgraded NetApp citing a compelling risk/reward at current share levels.
- Evercore ISI analyst Samantha Hoh upgraded U.S. Silica (SLCA) to Outperform from In Line with an unchanged price target of $20 after the company concluded the review of strategic alternatives for its Industrial and Specialty Products segment, which began in early October.
- Wells Fargo analyst Roger Read upgraded PBF Energy (PBF) to Overweight from Equal Weight with a price target of $57, up from $30. The analyst now expects PBF to generate a blended crack spread near $25/bbl and generate corporate EBITDA of $1.44B in the second quarter.
- Kepler Cheuvreux analyst Marco Baccaglio upgraded LVMH (LVMUY) to Buy from Hold. The medium-term outlook for consumer luxury goods remains good even if dependent on a recovery in tourism, Baccaglio told investors in a research note.
Top 5 Downgrades:
- Benchmark analyst Matthew Harrigan downgraded Netflix (NFLX) to Sell from Hold with a $157 price target, stating that he "prematurely" upgraded the stock to Hold following the company's fourth quarter earnings report. While he is "not disconcerted" by Monday’s announcement that Ken Barker will assume the role of Principal Accounting Officer from CFO Spencer Neuman, Harrigan argued that the market is now "very jaded" on streaming valuations and thinks Netflix could be pressured if member growth and operating profit margin stall out.
- Bank of America analyst Elizabeth Suzuki downgraded Best Buy (BBY) to Neutral from Buy with a price target of $90, down from $110, stating that she sees increasing risk to Best Buy's fiscal 2024 earnings outlook as U.S. consumers pull back on discretionary spending.
- JPMorgan analyst Kenneth Worthington downgraded Coinbase (COIN) to Neutral from Overweight with a price target of $68, down from $171. The analyst continues to be a believer in the cryptocurrency markets and blockchain technology, but says the "extreme decline" in the price of cryptocurrency markets in the second quarter combined with Coinbase's ramp in investment "would appear to not only make it challenging for it to generate a profit in the near future but also to meet its annual loss cap" of $500M of annual EBITDA.
- Deutsche Bank analyst Sidney Ho downgraded HP Enterprise (HPE) to Hold from Buy with a price target of $16, down from $18. The analyst took another look at the IT hardware space and is now more cautious on demand.
- Baird analyst Jeff Johnson downgraded Henry Schein (HSIC) and Envista (NVST) to Neutral from Outperform with price targets of $88 and $46, down from $103 and $54, respectively. The firm's June dental survey shows modest slowing for patient volumes and fading spending expectations for dental equipment and he is increasingly concerned that discretionary spending on dental could fall more than in past cycles in a persistently elevated inflationary environment.
Top 5 Coverage Initiations:
- Credit Suisse analyst William Janela initiated coverage of Chesapeake Energy (CHK) with an Outperform rating and $115 price target. Chesapeake has emerged from restructuring with a "substantially stronger" balance sheet and lower cost structure, "unburdening it from the primary issues that saddled the legacy company," Janela told investors in a research note.
- Oppenheimer analyst Jed Kelly initiated coverage of Inspirato (ISPO) with a Perform rating. Despite a solid foundation and a management pedigree, Kelly thinks Inspirato needs to procure enough premium residences in an extremely competitive supply environment to support its 2025 revenue targets.
- Roth Capital analyst Scott Henry initiated coverage of Assure Holdings (IONM) with a Buy rating and $5.50 price target. The analyst believes the company's neurology monitoring services can continue to gain market share and drive revenue growth and near-term profits.
- B. Riley analyst Mayank Mamtani initiated coverage of Lineage Cell Therapeutics (LCTX) with a Buy rating and $4 price target. The analyst views Lineage as a "deep value play" in the cell therapy sector and believes the market undervalues its platform and pipeline due to the early stage of programs that are primarily focused on non-oncology indications.
- CJS Securities analyst Larry Solow initiated coverage of Kaman (KAMN) with an Outperform rating and $45 price target.
Symbols:
TSCO NTAP SLCA PBF LVMUY - $114.70 /
-5.915 (-4.90%)
NFLX BBY COIN HPE HSIC NVST CHK ISPO IONM LCTXLineage Cell Therapeutics
KAMN Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street