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:
-
Wolfe Research upgraded Roku (ROKU) to Outperform from Peer Perform with a $93 price target. Amid industry and Roku-specific fears about connected TV, or CTV, ad sales, management’s rising focus on monetization supports acceleration and “should bury the profitability debate,” says the firm, which lifted the firm’s estimates above consensus.
-
Exane BNP Paribas upgraded Bill (BILL) to Outperform from Neutral with a $90 price target. The company is investing in suppliers’ go-to-market, which will generate sustainable take-rate expansion, the firm tells investors in a research note
-
BofA upgraded PotlatchDeltic (PCH) to Buy from Neutral with a $51 price target. Fundamental catalysts may be lacking in the near-term, but PotlatchDeltic offers 20%-plus total upside potential based on the firm’s price target.
-
Craig-Hallum upgraded Champions Oncology (CSBR) to Buy from Hold with an unchanged price target of $6. Champions’ Q1 results showed “another positive step towards recovery,” with revenues up 12% year-over-year and both adjusted EBITDA and EPS “jumping materially sequentially.”
-
BofA upgraded Diageo (DEO) to Buy from Neutral with a price target of 2,800 GBp, up from 2,600 GBp. After a challenging two years consensus forecasts “seem low enough now,” the firm tells investors in a research note.
Top 5 Downgrades:
-
Exane BNP Paribas double downgraded Micron Technology (MU) to Underperform from Outperform with a price target of $67, down from $140. While some investors correctly anticipate downside risk to near-term results, Micron will underperform its artificial intelligence peers through 2025 as high bandwidth memory capacity oversupply leads to a faster than expected market correction of conventional DRAM selling prices, the firm tells investors in a research note.
-
UBS downgraded Interpublic Group (IPG) to Sell from Neutral with a price target of $29, down from $34. The firm expects Interpublic’s organic growth in 2025 to decline by 1.1% versus the consents estimate of up 1.4%.
-
Stifel downgraded Simon Property (SPG) to Hold from Buy with a price target of $159, up from $157.50. With shares now trading above the firm’s NAV estimate and facing potentially uninspiring 2025 FFO growth, the firm believes that shares could lag the RMS in the near-term.
-
Jefferies downgraded TEN, Ltd. (TEN) to Hold from Buy with a price target of $27, down from $31. While TEN shares trade significantly below net asset value, the company’s free cash flow generation is low due to a relatively higher debt ratio and sizable newbuilding commitments, contends Jefferies.
-
Jefferies downgraded Nordic American Tankers (NAT) to Hold from Buy with an unchanged price target of $4. The firm says age of fleet is becoming a concern with one-third of the company’s vessels built pre-2010, “which is having a noticeable impact on realized freight rates.”
Top 5 Initiations:
-
Stephens initiated coverage of Carvana (CVNA) with an Overweight rating and $190 price target. Carvana is already the most profitable used vehicle player on a per-unit basis and will be so on an EBITDA basis by year-end, the firm states.
-
RBC Capital initiated coverage of Sprouts Farmers Market (SFM) with a Sector Perform rating and $107 price target. The firm says that with adjusted EBITDA margins already well above the peer set and a “lofty valuation,” the downside risk outweighs upside potential.
-
Barclays initiated coverage of the Flutter Entertainment U.S. shares (FLUT) with an Overweight rating and $263 price target. The company offers an attractive combination of “product moat, unmatched scale,” and global total addressable market opportunity ahead, the firm tells investors in a research note.
-
JMP Securities initiated coverage of Rocket Lab (RKLB) with a Market Perform rating and no price target. The firm is on the sidelines due to potential near-term risks and challenges placing pressure on the stock, but thinks there are “several strong, fundamental aspects” to Rocket Lab that could eventually lead it to be more positive on the name.
-
Stephens initiated coverage of AutoNation (AN) with an Overweight rating and $210 price target. The firm views AutoNation as the “most basic, least uncertain” way for investors to gain exposure to the public six dealership groups.
