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:
- Morgan Stanley upgraded Wynn Resorts (WYNN) to Overweight from Equal Weight with a price target of $104, up from $97, representing 25% upside. Wynn's "near low" valuation, "underappreciated" growth opportunity in the United Arab Emirates, and optionality around Macau provide a favorable risk/reward and re-rating potential, the analyst tells investors in a research note.
- UBS upgraded Vista Energy (VIST) to Buy from Neutral with a price target of $60, up from $55. Vista has been surprising to the upside on its production outlook, securing additional equipment to accelerate its development plan, adding even more wells, the analyst tells investors in a research note.
- Truist upgraded Biomea Fusion (BMEA) to Buy from Hold with a $54 price target. Following the clinical hold lift for the company's lead drug BMF-219 in type 2 diabetes, the analyst says that the stock's key overhang is removed.
- UBS upgraded Certara (CERT) to Buy from Neutral with an unchanged price target of $16. The firm has increased conviction that the company is "uniquely positioned" to drive further adoption of biosimulation in drug development and cross-sell related software.
Top Downgrades:
- BofA downgraded HP Inc. (HPQ) to Neutral from Buy with an unchanged price target of $37. The rating change is predicated on the view that any EPS growth will come purely from share buybacks as potential upside from PCs, including AI PCs, should be offset by lower print margins given that company has been "over-earning in printing."
- Morgan Stanley downgraded Udemy (UDMY) to Underweight from Equal Weight with a price target of $7.50, down from $10. Udemy's shift in strategy could be a sign of weakening demand, the analyst tells investors.
- KeyBanc downgraded Bumble (BMBL) to Sector Weight from Overweight without a price target. The shares are up 12% since the day after Q2 earnings while app data points to continued weakness in top of funnel trends, the analyst tells investors in a research note.
- Citi downgraded Dollar General (DG) to Sell from Neutral with a price target of $73, down from $91. The company "has had a tough" two years with comps only slightly positive each year and fiscal 2024 EBIT margin of 4.7% versus 8.4%in fiscal 2019, despite the sales base being 50% larger this year, says the firm.
- DA Davidson downgraded Campbell (CPB) to Neutral from Buy with an unchanged price target of $51. The firm holds to its broader industry view that food companies will have to work harder for less growth in a more competitive environment, as reflected in its below consensus model for Campbell through at least FY26.
Top Initiations:
- Raymond James resumed coverage of Airbnb (ABNB) with a Market Perform rating and $134 fair value estimate. The firm holds a positive bias on Airbnb's strategy to improve the core guest/host platform and long-term ambitions to develop a generative artificial intelliotence travel concierge app, but macro unevenness in travel demand and limited visibility into its generative AI product roadmap leads to the Market Perform rating, the firm says.
- Deutsche Bank resumed coverage of Dell Technologies (DELL) with a Buy rating and $144 price target. The firm expects Dell's sales growth to accelerate into the double-digits over the next several quarters, saying the company benefits from a "confluence of tailwinds across key segments," where it is a share leader.
- Deutsche Bank initiated coverage of Planet Fitness (PLNT) with a Hold rating and $71 price target. The firm views the stock as a "consensus long" among both buy-side investors and sell-side analysts alike.
- Cantor Fitzgerald initiated coverage of Amgen (AMGN) with an Overweight rating and $405 price target. The firm views Amgen's obesity asset, MariTide, as significant opportunity and is "convinced" the company's presence in obesity "is here to stay."
- Roth MKM initiated coverage of Chesapeake (CHK) with a Buy rating and $92 price target. Chesapeake has a strong capital return policy and will be the largest gas producer following the Southwestern Energy (SWN) merger, which improves its gas pricing, the analyst tells investors in a research note.
