Disney upgrade, Carvana downgrade and Mobileye 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:
- MoffettNathanson analyst Michael Nathanson upgraded Disney (DIS) to Outperform from Market Perform with a $120 price target, citing the news that the company is bringing back former CEO Bob Iger for a two-year term.
- Piper Sandler analyst Clarke Jeffries upgraded Squarespace (SQSP) to Overweight from Neutral with a price target of $30, up from $22. Squarespace stood out in Q3 as one of the few businesses this quarter with improving constant currency revenue growth and bookings growth, Jeffries tells investors in a research note.
- Wells Fargo analyst Jared Shaw upgraded Silvergate Capital (SI) to Equal Weight from Underweight with a price target of $30, up from $25. The analyst argues Silvergate does not have the same liquidity problems as FTX, having ample cash, securities, and if needed, borrowing capacity, to fund deposit outflows.
- Morgan Stanley analyst John Glass upgraded Restaurant Brands (QSR) to Equal Weight from Underweight with a price target of $71, up from $56. The appointment of industry veteran Patrick Doyle as executive chairman "adds significant confidence" in Restaurant Brands' narrative and will likely broaden shareholder interest, Glass tells investors in a research note.
- Credit Suisse analyst Nicholas Campanella upgraded Pinnacle West (PNW) to Neutral from Underperform with a price target of $73, up from $60, following positive EEI meetings and the Arizona Corporate Commission election which he expects to result in a more constructive regulatory environment overall for Pinnacle West regulated utility,
Top 5 Downgrades:
- Argus analyst Taylor Conrad downgraded Carvana (CVNA) to Sell from Hold. The stock's sharp decline reflects the company's recent results and weak industry trends, the analyst tells investors in a research note.
- Barclays analyst Adrienne Yih downgraded Williams-Sonoma (WSM) and RH (RH) to Equal Weight from Overweight with price targets of $114 and $243, down from $192 and $328, respectively. The analyst cited a weakening housing cycle that she believes will have a "trickle-down impact" on home furnishing spending over the next 12 to 24 months and high-end wallet pressure.
- Raymond James analyst John Ransom downgraded Cigna (CI) to Outperform from Strong Buy with a $370 price target. Cigna's Medicare Advantage exposure is relatively small, but Ransom thinks the tough Medical Loss Ratio comparison and potential rotation out of defensive stocks creates a more balanced outlook versus the prior rating.
- Raymond James analyst John Ransom downgraded UnitedHealth (UNH) to Outperform from Strong Buy with a $615 price target. UnitedHealth has the largest Medicare Advantage book in the industry, along with a growing risk-bearing business in OptumHealth which would be affected by potential negative outcomes in Medicare Advantage, Ransom tells investors in a research note.
- Evercore ISI analyst Steve Sakwa downgraded Extra Space Storage (EXR) to Underperform from In Line with a price target of $150, down from $162. The analyst cites recent stock moves and more conservative underwriting in a few sectors, namely apartments, SFR and storage, after having attended the Fall NAREIT conference in San Francisco.
Top 5 Initiations:
- Several Wall Street analysts initiated coverage of Mobileye (MBLY) on Monday, with Citi’s Itay Michaeli naming his top supplier pick as he started the stock with a Buy. Also bullish on Mobileye, Goldman Sachs, Cowen, Evercore ISI, Mizuho, Needham, and UBS started coverage of Mobileye with Buy-equivalent ratings. Raymond James also started the name with a Strong Buy, while Morgan Stanley, BofA, and Wolfe Research initiated coverage of the stock with Neutral-equivalent ratings.
- UBS analyst Erika Najarian initiated coverage of American Express (AXP) with a Neutral rating and $168 price. Najarian notes that her expected earnings assume a mild recession, and her EPS estimates are on average 14% below 2023 consensus and 8% below 2024 consensus.
- Cowen analyst Matthew Ramsay reinstated coverage of Intel (INTC) with a Market Perform rating and $31 price target. The dividend is "safe," but "barely," as Intel will continue to face material cash flow headwinds in the coming years as the key to Intel's turnaround is its long-term node progression, Ramsay tells investors.
- Morgan Stanley analyst Stephen Grambling initiated coverage of Las Vegas Sands (LVS) with an Overweight rating and Wynn Resorts (WYNN) with an Equal Weight rating as he started coverage of the U.S. gaming space with an In-Line view. Depressed valuations have started to reflect earnings risk from an eroding macro environment and he would watch for further EPS revisions to become constructive. The analyst also initiated coverage of Caesars (CZR), MGM Resorts (MGM), Penn Entertainment (PENN), and Sportradar (SRAD) with Neutral ratings, and Boyd Gaming (BYD) with an Underweight.
- UBS analyst Erika Najarian initiated coverage of Discover (DFS) with a Neutral rating and $120 price target. Najarian notes that while Discover may be an "underappreciated franchise," the near-term backdrop precludes consumer finance stocks from "breaking out" as a 2023 mild recession appears to be in base case investor expectations. The analyst also started coverage of Capital One (COF) with a Neutral rating and $120 price.
Symbols:
BYD DFS DIS SQSP SI QSR PNW CVNA WSM RH CI UNH EXR MBLY AXP INTC LVS WYNN CZR MGM PENN SRAD COF Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street