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:
- Truist upgraded Nike (NKE) to Buy from Hold with a price target of $97, up from $83. The firm notes it has been cautious on Nike since Fall of 2023 and still views a turnaround process as long and uncertain, but says it is now "more optimistic" as investor expectations finally seem to accurately reflect this reality.
- Barclays upgraded CVS Health (CVS) to Overweight from Equal Weight with a price target of $82, up from $63. CVS went "three-for-three" in important Medicare releases over the past two weeks, which is a positive first step to unlock significant value at Aetna, the firm tells investors in a research note.
- BofA upgraded Brinker (EAT) to Neutral from Underperform with a price target of $90, up from $63. Investor enthusiasm for a turnaround at Chili's and successful execution by CEO Kevin Hochman are evident in the stock's 95% year-to-date rally and multiple expansion, says the firm, which views the outperformance as "justified."
- JPMorgan upgraded Fortive (FTV) to Overweight from Neutral with a price target of $92, up from $90. Having lagged this year on headwinds "that are now well vetted," the stock is one of the cheapest in the sector on free cash flow yield, the firm tells investors in a research note.
- Wolfe Research upgraded L3Harris Technologies (LHX) to Outperform from Peer Perform with a $300 price target. The firm now has better confidence in a turning point in the company's relative growth in sales and earnings as well as mid-teens free cash flow growth.
Top 5 Downgrades:
- Bernstein downgraded PayPal (PYPL) to Market Perform from Outperform with a price target of $80, up from $75. While PayPal's product velocity is improving, Bernstein remains worried about competitive pressures on the "cash-cow core button, which often is still richly priced" versus peers.
- TD Cowen downgraded PepsiCo (PEP) to Hold from Buy with a price target of $183, down from $190. The firm continues to view PepsiCo as a top-tier consumer packaged goods company, but believes "aggressive pricing" in its three biggest U.S. categories over-extended its value equation to consumers and will compromise its near-term pricing power.
- JPMorgan downgraded Hubbell (HUBB) to Neutral from Overweight with a price target of $454, up from $385. The firm says Hubbell's degree of estimate revisions and growth acceleration into 2026 "is not that differentiated," while the stock's valuation is "now stretched."
- Barclays downgraded Skyworks (SWKS) to Underweight from Equal Weight with a price target of $87, down from $115. The firm rolled out new content assumptions for the Apple (AAPL) iPhone SE4 and the iPhone 17 and assumes a more modest unit ramp next year.
- Barclays downgraded Cirrus Logic (CRUS) to Equal Weight from Overweight with a price target of $120, down from $140. The Cirrus Logic story has largely played out until we have line of sight on content increases in the iPhone 18, the firm tells investors in a research note.
Top 5 Initiations:
- BTIG initiated coverage of Birkenstock (BIRK) with a Buy rating and $60 price target. Birkenstock stands out as a unique retail growth story that combines a long brand legacy with future expansion potential, capable of delivering strong double-digit top-line growth with stable to improving margins, and this level of strong but predictable growth should command a premium multiple, the firm tells investors in a research note.
- Raymond James reinstated coverage of BioMarin (BMRN) with an Outperform rating and $79 price target. While key growth driver Voxzogo will face some stiff competition sooner than expected in the achondroplasia market with Ascendis Pharma's (ASND) recent success in Phase 3, the stock is oversold at these levels, the firm tells investors in a research note. Raymond James also reinstated coverage of Sarepta (SRPT), uniQure (QURE) and Regenxbio (RGNX) with Outperform ratings $150, and resumed coverage of Neurocrine (NBIX), Harmony Biosciences (HRMY), Xenon Pharmaceuticals (XENE), Agios Pharmaceuticals (AGIO) and Immunovant (IMVT) with Outperform ratings.
- Raymond James resumed coverage of Biogen (BIIB) with a Market Perform rating and no price target. The Leqembi launch, while growing, has not taken off and given the trajectory it is on, it seems unlikely to become a multi-billion-dollar opportunity, the firm tells investors in a research note. Raymond James also reinstated coverage of Sage Therapeutics (SAGE) and Acadia Pharmaceuticals (ACAD) with Market Perform ratings.
- Raymond James resumed coverage of Argenx (ARGX) with a Strong Buy rating and $605 price target. Argenx successfully secured approval of chronic inflammatory demyelinating polyneuropathy with a broad, clean label at the end of June, and the firm remains bullish that the launch will both exceed investor expectations and will beat consensus estimates.
- Needham initiated coverage of Align Technology (ALGN) with a Hold rating and no price target. The firm is positive on Align's long-term earnings growth potential with balance sheet optionality, but says consensus estimates for 2025 and 2026 are likely too high, especially considering ongoing constrained clear aligner demand.