The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.
Top 5 Upgrades:
- Morgan Stanley upgraded Trade Desk (TTD) to Overweight from Equal Weight with a price target of $90, up from $60. CTV and retail media are "among the strongest growth segments in online ads" and Trade Desk is both driving and benefiting from growth in CTV and retail media advertising, says the analyst. [read more]
- KeyBanc upgraded EPR Properties (EPR) to Overweight from Sector Weight with a $47 price target. The stock's upside potential outweighs the downside at current levels ahead of Cineworld's bankruptcy resolution expected in July, the analyst tells investors in a research note. [read more]
- BMO Capital double upgraded Kinsale Capital Group (KNSL) to Outperform from Underperform with a price target of $389, up from $270. The analyst admits to underappreciating Kinsale's "glaring competitive advantages," especially its expense advantage which enables market share expansion. [read more]
- BofA upgraded Universal Health (UHS) to Buy from Neutral with an unchanged price target of $163. A positive hospital backdrop gives visibility into margins normalizing over time to create a "multi-year growth story," the analyst tells investors. [read more]
- Wells Fargo upgraded Elastic (ESTC) to Equal Weight from Underweight with a price target of $67, up from $55. [read more]
Top 5 Downgrades:
- Piper Sandler downgraded Dollar General (DG) to Neutral from Overweight with a price target of $178, down from $275. After keeping an Overweight rating on the shares for over 10 years, the analyst downgrades Dollar General on the "somewhat inexplicable" sales and comp weakness, a lack of conviction for a near-term rebound, and concerns that the company's guidance wasn't reduced enough. [read more] Additionally, Atlantic Equities downgraded Dollar General to Neutral from Overweight with a $170 price target. [read more]
- Canaccord downgraded SentinelOne (S) to Hold from Buy with a price target of $14, down from $20. The company reported weak Q1 results and provided Q2 and 2024 guidance below estimates due to the tough macro impacting deal size and pipeline conversion rates, the analyst tells investors in a research note. [read more] DA Davidson also downgraded SentinelOne to Neutral from Buy with a price target of $13.50, down from $22. [read more] SentinelOne was also downgraded at Stephens [read more] and at WestPark Capital. [read more]
- DA Davidson downgraded Asana (ASAN) to Neutral from Buy with an unchanged price target of $21. The company started the year off fine, but is revised guidance shows a worse second half performance than previously expected, the analyst said. [read more]
- JPMorgan downgraded Xcel Energy (XEL) to Neutral from Overweight with a price target of $68, down from $79. This week, the Minnesota Public Utilities Commission approved new electric rates for Northern States Power Companies, authorizing a below average 9.25% return on equity in a surprise outcome, the analyst tells investors in a research note. [read more]
- Atlantic Equities downgraded Warner Music (WMG) to Neutral from Overweight with a price target of $26, down from $39. The loss of streaming share means recorded music streaming revenues are growing slower than expected, and the rapid development of artificial intelligence-created music is placing a "major cloud over the whole sector," the analyst tells investors in a research note. [read more]
Top 5 Initiations:
- UBS initiated coverage of Paychex (PAYX) with a Neutral rating and $115 price target, offering 10% upside potential. Over the next two years, Paychex's revenue growth will likely slow from recent, above-average levels as out of business rates normalize, unemployment rates rise and benefits from the government's employee retention tax credit program fade, the analyst tells investors. [read more]
- Oppenheimer initiated coverage of Acrivon Therapeutics (ACRV) with an Outperform rating and $25 price target ahead of initial Phase 2 data this year for CHK1/2 inhibitor prexasertib. Acrivon is trying "a wholly unique approach to precision oncology" as "the first company to apply phosphoproteomics-based biomarkers to prospectively identify patients likely to benefit from targeted therapies," the analyst tells investors. [read more]
- Citi initiated coverage of Kura Sushi (KRUS) with a Neutral rating and $88 price target. The analyst the company's "unique full-service model" that provides the customer control over the experience and time commitment will continue to resonate with a growing set of consumers to support both unit and same-store-sales growth. [read more]
- Baird initiated coverage of Regenxbio (RGNX) with an Outperform rating and $42 price target, citing what it views as the stock's "down to earth valuation" and the company's "multiple ways to win over the next year." [read more]
- Janney Montgomery Scott initiated coverage of Fluence Energy (FLNC) with a Buy rating and $30 fair value estimate. The shares have been outperforming on the combination of better-than-forecast utility-scale battery storage demand and margin improvement execution, says the analyst. [read more]