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:
Mizuho upgraded PayPal (PYPL) to Buy from Neutral with a price target of $90, up from $68. The firm’s analysis of PayPal’s newly introduced Fastlane product shows potential for $1.0B-$1.5B transaction margin dollar lift over the medium-term given the $1.43 trillion of annual e-commerce spend that is addressable.
BofA upgraded Datadog (DDOG) to Buy from Neutral with a price target of $155, up from $143. The company is establishing itself as the “next high quality large cap stock” in software, the firm tells investors in a research note.
Evercore ISI upgraded Okta (OKTA) to Outperform from In Line with a price target of $122, up from $102. The company reported strong Q1 results that exceeded tempered expectations, accompanied by a “much more upbeat tone,” suggesting that prior missteps and execution issues are now behind Okta, the firm tells investors in a research note.
Northland upgraded C3.ai (AI) to Outperform from Market Perform with an unchanged price target of $35 following the fiscal Q4 report. C3.ai reported accelerating subscription growth of 41% in Q4, providing evidence that the headwinds from a migration to a usage-based revenue model are abating, the firm tells investors in a research note.
Wells Fargo upgraded U.S. Cellular (USM) to Overweight from Equal Weight with a price target of $75, up from $38. The firm says that U.S. Cellular’s wireless sale to T-Mobile (TMUS) is just the first step of many it believes the company can take to unlock value for shareholders.
Top 5 Downgrades:
Needham downgraded UiPath (PATH) to Hold from Buy without a price target, citing a combination of macro pressure, uncertainty around near-term execution due to a CEO change and a changing go-to-market strategy, and year-over-year margin compression creating an unfavorable near-term financial profile for the downgrade. KeyBanc, William Blair, TD Cowen, Truist and BofA also downgraded UiPath to Neutral-equivalent ratings.
Piper Sandler downgraded Cava Group (CAVA) to Neutral from Overweight with a price target of $92, up from $63, following the company’s Q1 earnings results. Piper’s updated price target implies only about 4% upside from current levels, which leads the firm to view the risk-reward as more balanced at this time.
Mizuho downgraded First Solar (FSLR) to Neutral from Buy with a price target of $274, up from $209. The firm cites valuation for the downgrade.
Guggenheim downgraded Generac (GNRC) to Sell from Neutral with a $120 price target. The firm believes an active hurricane season is “already in the numbers,” and says it is hard to see upside potential to the current 2024 estimates.
BofA downgraded FactSet (FDS) to Underperform from Neutral with a price target of $407, down from $500. The firm believes the company’s annual subscription value and revenue “will remain stuck in a multi-quarter rut” amid an uncertain operating environment and sluggish capital markets activity.
Top 5 Initiations:
Goldman Sachs reinstated coverage of Johnson & Johnson (JNJ) with a Neutral rating and $160 price target. The firm expects J&J’s revenue and earnings growth over 2024 and 2025 likely to remain tethered at relatively modest low single-digit levels as the portfolio navigates near-term headwinds from major product loss of exclusivities. Goldman also started coverage of GSK (GSK), GE Healthcare (GEHC), Zimmer Biomet (ZBH), Baxter (BAX), and Stryker (SYK) with Neutral ratings.
Goldman Sachs initiated coverage of Intuitive Surgical (ISRG) with a Buy rating and $500 price target. There remains “ample room” for Intuitive to drive increased penetration of robotic-assisted surgery, enabled by its next generation product advances, the firm says. Goldman also started coverage of Boston Scientific (BSX), Edwards Lifesciences (EW), Abbott (ABT), Becton Dickinson (BDX), AstraZeneca (AZN), Novartis (NVS), Novo Nordisk (NVO) with Buy ratings.
Goldman Sachs initiated coverage of Medtronic (MDT) with a Sell rating and $83 price target. While the company is demonstrating consistency in its revenue growth, there is downside to Street earnings estimates due to the need to reinvest in the business to support growth amid stable end markets and relatively competitive industry dynamics, the firm argued. Goldman also started coverage of Solventum (SOLV) with a Sell rating.
Redburn Atlantic initiated coverage of DexCom (DXCM) with a Neutral rating and $130 price target. The company’s core markets have become increasingly penetrated, and its growth is now more reliant on capturing share in new areas, the firm tells investors in a research note.
Redburn Atlantic initiated coverage of Insulet (PODD) with a Buy rating and $235 price target. Insulet has disrupted the insulin delivery market, and the company has sustained momentum as patch pumps continue to convert users to pump therapy, the firm tells investors in a research note. Redburn also started coverage of Tandem Diabetes (TNDM) with a Buy rating and $60 price target.
EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel
