Most impactful research calls from Wall Street, all conveniently compiled in one place. Today’s essential insights for investors are right here, courtesy of The Fly
Most impactful research calls: Top 5 Upgrades:
1. **Netflix (NFLX)** received an upgrade from **Morgan Stanley** to “Overweight” from “Equal Weight,” with a revised price target of $475, up from $430. The firm is optimistic that Netflix will meet its objectives, accelerate revenue growth, and expand margins.
2. **First Solar (FSLR)** was upgraded by **JPMorgan** to “Overweight” from “Neutral,” with a new price target of $220 (down from $239). This upgrade follows a volatile period for alternative energy stocks, with Q3 results expected to act as a catalyst for better-performing stocks.
3. **Best Buy (BBY)** saw an upgrade from **Goldman Sachs** to “Buy” from “Neutral,” along with an increased price target of $85 (up from $79). The firm believes positive demand trends could lead to multiple expansion.
4. **Spirit AeroSystems (SPR)** was upgraded by **Deutsche Bank** to “Buy” from “Hold,” with a price target of $30 (up from $16). This upgrade follows a memorandum of understanding with Boeing (BA), with updated forecasts reflecting higher 787 shipset pricing.
5. **CrowdStrike (CRWD)** received an upgrade from **Jefferies** to “Buy” from “Hold,” with a price target of $225 (up from $170). The firm is positive on high-growth platforms despite ongoing challenges. Additionally, **Zscaler (ZS)** was upgraded to “Buy” from “Hold.”
**Top 5 Downgrades:**
1. **Foot Locker (FL)** was downgraded by **Goldman Sachs** to “Sell” from “Neutral,” with a price target of $18. The repositioning of the Champs Sports brand and changes in Nike (NKE) allocation are expected to impact the company’s performance.
2. **Peloton (PTON)** received a downgrade from **BofA** to “Underperform” from “Neutral,” with a price target of $4.15 (down from $6.50). The firm cited concerns about revenue risk due to increased churn.
3. **Fortinet (FTNT)** was downgraded by **Jefferies** to “Hold” from “Buy,” with a new price target of $65 (down from $85). The firm expects the company’s “hardware digestion” to continue for several quarters.
4. **Canada Goose (GOOS)** saw a downgrade from **Wells Fargo** to “Equal Weight” from “Overweight,” with a price target of C$20 (down from C$25). Tough macroeconomic conditions and unfavorable weather forecasts led to this decision. **TD Cowen** also downgraded Canada Goose to “Market Perform” from “Outperform.”
5. **Graphic Packaging (GPK)** was double downgraded by **Wells Fargo** to “Underweight” from “Overweight,” with a price target of $19 (down from $26). The firm expressed concerns about sustained food/beverage inflation and emerging GLP adoption affecting boxboard fundamentals.
**Top 5 Initiations:**
1. **Starbucks (SBUX)** received a “Buy” rating from **Deutsche Bank** with a price target of $118. The firm believes Starbucks is well-positioned for earnings growth.
2. **Chipotle (CMG)** was initiated with a “Buy” rating by **Deutsche Bank** and a price target of $2,375. The firm views Chipotle as a compounding growth story with strong growth potential.
3. **Match Group (MTCH)** received a “Buy” rating from **BofA** with a price target of $52. Monetization efforts and strong growth at Hinge are expected to drive revenue acceleration.
4. **Yum! Brands (YUM)** was initiated with a “Hold” rating by **Deutsche Bank** and a price target of $131. The firm cited Yum’s franchised business model and diversified portfolio as factors supporting earnings growth.
5. **Chewy (CHWY)** was reinstated with an “Underperform” rating by **BofA**, along with a price target of $16. Weakening pet e-commerce fundamentals are affecting revenue growth and margin expansion.
Please note that these ratings and price targets reflect the opinions of the respective financial institutions and are subject to change.
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