Spotify upgrade, Robinhood downgrade and Jack Henry 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:
- Wells Fargo analyst Steven Cahall upgraded Spotify (SPOT) to Equal Weight from Underweight with a price target of $124, up from $101. The analyst noted that Spotify's recent investor day laid out a more profitable company than he has modeled historically.
- Jefferies analyst Ashley Helgans upgraded Tapestry (TPR) to Buy from Hold with a price target of $45, up from $30, as she took over lead coverage of the stock. Helgans argued that Tapestry "significantly" improved its financial profile driven by the foundational changes made to the business over the last few years, namely in digital, marketing, and data.
- Canaccord analyst David Hynes upgraded Snowflake (SNOW) to Buy from Hold with an unchanged price target of $185, arguing that shares are "too cheap" if one take management's 2028 targets for $10B in product revenue and 25% free cash flow margins shared at Snowflake's analyst day at face value.
- Argus analyst John Staszak upgraded Skechers (SKX) to Buy from Hold with a $44 price target. The company's supply-chain initiatives and strong brand are likely to boost revenue and earnings over the next two years, the analyst told investors in a research note.
- JPMorgan analyst Steven Alexopoulos double upgraded Cullen/Frost (CFR) to Overweight from Underweight with a price target of $155, up from $143. The analyst argued that the bank's "peer-leading" client satisfaction metrics have improved even further with Frost not only the top ranked bank in the U.S. on digital channels but also one of only a handful of traditional banks to surpass neo-banks on overall client satisfaction.
Top 5 Downgrades:
- Atlantic Equities analyst John Heagerty downgraded Robinhood (HOOD) to Underweight from Neutral with a $5 price target, down from $15, which implies 30% downside. The analyst is increasingly concerned about the "deteriorating revenue trends" facing Robinhood.
- B. Riley analyst Craig Ellis downgraded eight companies in the semiconductor sector to Neutral from Buy due to a "downwardly revised SOX bottoming view," namely Alpha & Omega (AOSL), Indie Semiconductor (INDI), Marvell (MRVL), Semtech (SMTC), Transphorm (TGAN), Lam Research (LRCX), Camtek (CAMT) and Ichor Holdings (ICHR).
- Bank of America analyst Kevin Fischbeck double-downgraded Oak Street Health (OSH) to Underperform from Buy with a price target of $18, down from $26. The analyst's assumed multiple of 1.8-times forward expected sales is down from 2.2-times prior is due to elevated COVID costs clouding visibility as well as the possibility of another dilutive fundraising round. The analyst also downgraded Oscar Health (OSCR) to Underperform from Neutral, and Community Health (CYH), Cano Health (CANO) and Surgery Partners (SGRY) to Neutral from Buy.
- Wells Fargo analyst Nitin Kumar downgraded Continental Resources (CLR) to Equal Weight from Overweight with an $82 price target after the company reported that it had received a non-binding proposal from the Hamm Family to acquire for cash all outstanding common stock of the company not already owned by Hamm, his trust and other family members for $70/share.
- Jefferies analyst George Notter downgraded Comtech (CMTL) to Hold from Buy with a price target of $10, down from $32. After "disappointing" April results and forward-looking guidance, Notter issued a "mea culpa," admitting to investors that Comtech's recovery will take longer than he'd previously thought.
Top 5 Coverage Initiations:
- Morgan Stanley analyst James Faucette initiated coverage of Jack Henry (JKHY) with an Equal Weight rating and $190 price target. The analyst views the company's multiple premium versus other processors as appropriate given its strengths.
- Goldman Sachs analyst Noah Poponak initiated coverage of Wheels Up (UP) with a Buy rating and $5 price target as he sees an attractive entry point at current share levels.
- Barclays analyst Adrienne Yih reinstated overage of G-III Apparel (GIII) with an Equal Weight rating and $22 price target. The company's first quarter results last week and outlook for fiscal 2022 demonstrate it benefits from wardrobe refreshes on the return to occasions, Yih told investors in a research note.
- Lake Street analyst Eric Martinuzzi initiated coverage of PubMatic (PUBM) with a Buy rating and $26 price target. Investors are questioning the pace of economic growth, which could reduce demand for advertising services, but he believes PubMatic's current share price reflects "a pessimism disproportionate to the company's likely execution."
- Craig-Hallum analyst Alex Fuhrman initiated coverage of 22nd Century (XXII) with a Buy rating and $5 price target. With December's FDA first-ever MRPT authorization for a combustible cigarette, a very-low-nicotine product aptly named "VLN King" and "VLN Menthol King," 22nd Century has all the pieces in place to launch the first-ever combustible cigarette with "modified risk tobacco product" designation, the analyst argued.
Symbols:
SPOT TPR SNOW SKX CFR HOOD AOSL INDI MRVL SMTC TGAN LRCX CAMT ICHR OSH OSCR CYH CANO SGRY CLR CMTL JKHY UP GIII PUBM XXII Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street