Domino's Pizza upgrade, Paramount downgrade and TD Synnex 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:
- UBS analyst Dennis Geiger upgraded Domino's Pizza (DPZ) to Buy from Neutral with a price target of $385, down from $430. The analyst believes that the demand weakness concerns among investors are overblown, and he expects the company's existing catalysts - namely, upcoming price increases on select promos, efforts to improve driver staffing shortages, and potential third-party delivery partnerships - to accelerate U.S. sales trends.
- SVB Securities analyst Puneet Souda upgraded Illumina (ILMN) to Outperform from Market Perform with a price target of $270, up from $220, following the company's analyst day event. The NovaSeq X+ debuted last week should become "the instrument of choice" as both clinical and research end markets pivot to whole genomes, said Souda, who also sees the divestiture of Grail looking likely based on pressure from regulators and commentary from management at the event.
- JPMorgan analyst Chris Schott upgraded Gilead Sciences (GILD) to Overweight from Neutral with a price target of $80, up from $72. The combination of increased visibility on the company's HIV franchise and an emerging oncology franchise is not well reflected in the stock's current valuation, Schott told investors in a research note.
- Credit Suisse analyst Sami Badri upgraded CommScope (COMM) to Outperform from Neutral with a price target of $17, up from $11. Driven by "significant" multi-year government funding to accelerate broadband and connectivity infrastructure, CommScope is "indexed to multi-year tailwinds in its core product segments," Badri argued.
- Citi analyst Keith Horowitz upgraded BNY Mellon (BK) to Buy from Neutral with an unchanged price target of $46. The company has limited credit risk, a "strong" return outlook, and capital return capacity, Horowitz told investors in a research note.
Top 5 Downgrades:
- Wells Fargo analyst Steven Cahall downgraded Paramount (PARA) to Equal Weight from Overweight with a price target of $19, down from $40. The analyst is "increasingly worried" about the linear ecosystem across media.
- BofA analyst Shaun Kelley downgraded Sportradar (SRAD) to Underperform from Neutral with a price target of $8, down from $14. While Kelley believes in Sportradar's data/contract-driven business model, it has more international exposure than any company under coverage, and its B2B model makes it hard to channel check. The analyst also double downgraded Membership Collective (MCG) to Underperform from Buy with a price target of $4, down from $12.
- Citi analyst Keith Horowitz downgraded M&T Bank (MTB) to Neutral from Buy with an unchanged price target of $200. The stock has been a top performer year-to-date as M&T is among the best positioned for the upcoming environment, but much of the upside appears to be priced into the shares, Horowitz told investors in a research note.
- Citi analyst P.J. Juvekar downgraded Westlake (WLK) to Sell from Neutral with a price target of $80, down from $106. The analyst does not anticipate chemicals to outperform at least until next spring, when the energy price scenario "could be more benign" after the winter and high inventories of plastics could have worked down due to lowering of operating rates.
- Wells Fargo analyst Yanan Zhu downgraded Applied Genetic Technologies (AGTC) to Equal Weight from Overweight with a price target of 50c, down from $12, following a review of the company's financial results and program updates.
Top 5 Initiations:
- RBC Capital analyst Ashish Sabadra initiated coverage of TD Synnex (SNX) with a Sector Perform rating and $95 price target. The company's focus on high-growth areas such as Cloud, Big Data & Analytics, AI, IoT, Software and AR/VR, which currently account for about 20% of gross billings and have the potential to double in the mid-term, enable TD Synnex to deliver on its revenue growth target of about 6%-7% over the mid-term while generating about 50-70bps of margin expansion, the analyst told investors in a research note.
- Needham analyst David Saxon initiated coverage of Glaukos (GKOS) with a Buy rating and $66 price target. The company has lost some share in the minimally invasive glaucoma surgery, MIGS, market share due to reimbursement dynamics, but its recent launches could enable it to recapture most of this share and represent a potential source of upside for the stock, the analyst told investors in a research note.
- Wells Fargo analyst James Monigan initiated coverage of TFI International (TFII) with an Overweight rating and $111 price target given his belief that estimates are too low and the current multiple reflects underappreciated earnings power.
- Barrington analyst Gary Prestopino initiated coverage of DHI Group (DHX) with an Outperform rating and $12 price target. The analyst believes the company's business model will see adjusted EBITDA margins approach approximately 30% as sales growth matures and the pace of investments in sales and marketing slows.
- Wells Fargo analyst Michael Blum initiated coverage of Archaea Energy (LFG) with an Overweight rating and $25 price target. The analyst noted that Archaea is one of the largest renewable natural gas producers in the U.S., with a highly visible 6–8-year growth outlook underpinned by a project backlog of 78 RNG facilities.
Symbols:
GILD DPZ - $328.84 /
+12.485 (+3.95%)
ILMN - $201.32 /
+14.14 (+7.55%)
COMM BK PARA SRAD MCG MTB WLK AGTC SNX GKOS DHX LFG Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street