Arista Networks upgrade, Twilio downgrade, and PepsiCo 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:
- Piper Sandler analyst James Fish upgraded Arista Networks (ANET) to Overweight from Neutral with a price target of $164, up from $126. Following the company's analyst day, Fish is more confident in Arista's visibility and sustainable growth trajectory. He sees a positive risk/reward heading into 2023 given the company's enterprise share gains, launch of new solutions and 400G/800G cycle.
- Summit Insights analyst Kinngai Chan upgraded Skyworks (SWKS) to Buy from Hold saying the company is well positioned to outperform in the second half of 2023. While the current macroeconomic headwinds and inflationary pressures will likely continue to impact near-term financial results, Skyworks is "exceptionally well positioned with its key customers," Chan tells investors in a research note.
- Goldman Sachs analyst Jared Garber upgraded Restaurant Brands (QSR) to Neutral from Sell with a price target of $64, up from $57, post the Q3 results. The analyst sees improving trends in the Tim Horton's Canada business supported by both re-opening trends and strategic initiatives "that seem to be driving momentum ahead of the macro" environment.
- Raymond James analyst C. Gregory Peters upgraded Mercury General (MCY) to Strong Buy from Underperform with a $45 price target. The upgrade reflects the analyst's expectation of an improved outlook for future profitability considering that the DOI should approve Mercury's auto rate filings in California sometime in the next six months, the success of management's ongoing rate initiatives in other states and growing NII as a result of the higher interest rate environment, Peters tells investors in a research note.
- Citi analyst Atif Malik upgraded Cohu (COHU) to Buy from Neutral with a price target of $45, up from $30, after taking over coverage of the name. The analyst believes the semiconductor equipment group has bottomed given the memory pricing collapse, domestic China spend dislocation, and estimate declines.
Top 5 Downgrades:
- Wells Fargo analyst Michael Turrin downgraded Twilio (TWLO) to Equal Weight from Overweight with a price target of $60, down from $140. The company's Q4 guidance and investor day session that followed "present a tough leap of faith," Turrin tells investors in a research note. Cowen analyst J. Derrick Wood downgraded Twilio to Market Perform from Outperform with a price target of $65, down from $100, while RBC Capital analyst Rishi Jaluria downgraded Twilio to Sector Perform from Outperform with a price target of $55, down from $110.
- Piper Sandler analyst John Barnidge last night downgraded Lincoln National (LNC) to Neutral from Overweight with a price target of $38, down from $55, post the Q3 results. The company's go forward earnings power is "meaningfully lower," Barnidge tells investors in a research note. BofA analyst Joshua Shanker also downgraded Lincoln National to Neutral from Buy with a price target of $40, down from $78.
- Piper Sandler analyst James Fish downgraded Atlassian (TEAM) to Neutral from Overweight with a price target of $148, down from $283, post the fiscal Q1 results. The biggest issues were the slowdown in free to paid conversions and existing seat-expansion, Fish tells investors in a research note.
- JPMorgan analyst Paul Chung downgraded GoPro (GPRO) to Neutral from Overweight with a price target of $6, down from $9. The company's Q4 guidance "missed materially," driven by currency and a reduction in inventories at big box retailers, Chung tells investors in a research note. Oppenheimer analyst Martin Yang also downgraded GoPro to Perform from Outperform without a price target.
- UBS analyst Ashwani Verma downgraded Teva (TEVA) to Sell from Neutral with a price target of $7, down from $10, after its Q3 earnings miss. The analyst anticipates "significant downside" to near-term consensus estimates for the company, also citing a phase of uncertainty as Teva experiences a transition in leadership with persisting litigation risk.
Top 5 Initiations:
- Redburn analyst Charlie Higgs initiated coverage of PepsiCo (PEP) with a Sell rating and $141 price target. Frito-Lay is facing slowing volumes at a time when PepsiCo has "tougher tests" ahead with Coca-Cola (KO) and its bottlers upgrading their portfolio and execution during the pandemic, Higgs tells investors in a research note.
- BTIG analyst Thomas Catherwood initiated coverage of WeWork (WE) with a Buy rating and $7.50 price target. The analyst expects the need for flexible solutions to drive a "Supercycle" of demand for flexible workspaces over the near- and medium-term, a trend that should directly benefit WeWork.
- Cantor Fitzgerald analyst Li Watsek assumed coverage of Fate Therapeutics (FATE) with an Overweight rating with a price target of $45, down from $98, after a model review. Watsek tells investors in a research note that the FDA has given positive feedback on the trial design of FT516 and the iPSC product platform, which should have a broad read-through to the whole platform and FT596's pathway in non-Hodgkin lymphoma, and thinks data updates at the SITC and ASH meetings will likely be incremental given that these programs are still early in dose-escalation in heavily pre-treated patients.
- Janney Montgomery Scott analyst Sean Milligan initiated coverage of Enovix (ENVX) with a Buy rating and $23 fair value estimate. The analyst views the more than 40% selloff in the shares since the Q3 earnings conference call on Tuesday as a buying opportunity.
- Stifel analyst J. Bruce Chan initiated coverage of RXO Inc. (RXO) with a Buy rating and $20 price target following the completion of its spinoff from XPO Logistics (XPO). The recently-debuted RXO Logistics includes the asset-light pieces of the predecessor entity, with a core high-growth Truck Brokerage division, North America's "leading" Final Mile heavy goods provider, a Managed Transportation operation and an International Freight Forwarding Division, noted Chan.
Symbols:
TWLO LNC - $34.84 /
-17.31 (-33.19%)
TEAM ANET GPRO SWKS QSR MCY COHU PEP KO FATE WE TEVA ENVX RXO XPO Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street