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 Upgrades:
- Phillip Securities upgraded PayPal (PYPL) to Buy from Accumulate with a price target of $80, up from $75, following the Q2 report. The firm cites valuation for the upgrade following the stock's recent pullback.
- RBC Capital upgraded Kellanova (K) to Outperform from Sector Perform with a price target of $76, up from $62, after Reuters reported over the weekend that Mars might have interest in acquiring Kellanova.
- BofA upgraded Five9 (FIVN) to Buy from Underperform with an unchanged price target of $63. The firm's bullish view is underpinned by AI tailwinds in the near- and medium-term, a belief that competitive and market related threats are "more than priced into shares," potential upside from strategic actions and what it views as a "compelling" risk/reward given that its unchanged price target points to 54% upside potential.
- RBC Capital upgraded Lockheed Martin (LMT) to Outperform from Sector Perform with a price target of $600, up from $500. The firm believes investor sentiment is improving, with the company seeing a positive inflection in its sales growth, the resumption of F-35 deliveries lifting an overhang, and the outlook for the MFC segment improving.
- Citi upgraded Robinhood (HOOD) to Neutral from Sell with an $18 price target. The firm believes Robinhood's fundamental story has been improving with "healthy growth" in deposits, margin balances, and options/equities trading.
Top Downgrades:
- RBC Capital downgraded Moderna (MRNA) to Sector Perform from Outperform with a price target of $90, down from $125. The firm remains "big believers" in Moderna's cancer vaccine, but in the short-term, it notes Moderna is facing "material headwinds" for both RSV and COVID.
- BofA downgraded Extra Space Storage (EXR) to Underperform from Neutral with a price target of $155, down from $172, citing "fading hope" for improvement in demand for storage, possibly through 2025 peak leasing season, as well as weaker demand in pandemic-boosted markets like Florida.
- Daiwa downgraded Mobileye (MBLY) to Neutral from Buy with a price target of $17, down from $35. The firm cites the company's "materially lower" second half of 2024 outlook for the downgrade.
- Seaport Research downgraded six homebuilders - Lennar (LEN) and PulteGroup (PHM) to Neutral from Buy, and KB Home (KBH), LGI Homes (LGIH), Meritage Homes (MTH) and Toll Brothers (TOL) to Sell from Neutral. The risk to return outlook for the builders is now to the downside, with the Federal Reserve-induced rally lifting book valuations despite fewer positive catalysts post the Q2 results and more decelerating macro trends, the firm tells investors in a research note.
- Barclays downgraded Vertex Pharmaceuticals (VRTX) to Equal Weight from Overweight with a price target of $509, up from $472, citing valuation. The firm expects a "consistent solid" cystic fibrosis launch with modest Casgevy uptake, but does not see major near-term upside to its already bullish assumptions for both acute and neuropathic pain opportunities.
Top Initiations:
- Morgan Stanley initiated coverage of MKS Instruments (MKSI) with an Overweight rating and $155 price target. As the company's semiconductor, electronics and packaging businesses enter a cyclical recovery, it should return to its post-acquisition deleverage playbook and see outsized earnings growth, the firm tells investors in a research note.
- Oppenheimer initiated coverage of Praxis Precision (PRAX) with an Outperform rating and $134 price target. The firm says that despite the risk associated with therapeutics for essential tremor, it believes the company's "differentiated" trial design gives ulixacaltamide a real shot at success.
- EF Hutton initiated coverage of CollPlant (CLGN) with a Buy rating and $14 price target. The firm says the company has partnered with leader Allergan to develop dermal fillers and is also working on a 3D breast implant that could change the paradigm of reconstructive surgery.
- Ascendiant initiated coverage of Mira Pharmaceuticals (MIRA) with a Buy rating and $11 price target. The firm sees large market opportunities for the company's Ketamir-2 and MIRA-55 drugs for depression and dementia.
