The most talked about and market-moving research calls on Wall Street are now in one place. Here are today’s research calls that investors need to know, compiled by The Fly.
Top 5 upgrades:
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KeyBanc Upgraded DoorDash (DASH) from Sector Weight to Overweight with a $177 price target. The firm emerged from its Q3 mobility and delivery survey with greater confidence that DoorDash is making gains in its core and emerging verticals, which should sustain gross order volume growth of more than 15% and deliver EBITDA of $3.5 billion by 2026, or 6% above consensus.
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Morgan Stanley Upgraded AutoNation (AN) from Equal Weight to Overweight with a price target of $200, up from $145. The firm believes its previous latent concerns about its franchise dealer business model have “largely mitigated” and it now sees greater risk in other parts of its U.S. auto coverage.
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Barclays upgraded HP Company (HPE) from Equal Weight to Overweight with a price target of $24, up from $20. The firm believes the company will continue to grow its AI server revenue, improve in storage and is pleased with the accretion from the Juniper Networks (JNPR) deal.
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Wells Fargo Upgraded Baker Hughes (BKR) from Equal Weight to Overweight with a price target of $42, up from $40, as part of a broader research note on Energy Services. The firm raises the multiple for its Industrial & Energy Technology segment, IET, reflecting improved outlooks and valuation opportunities for this diversified segment, which helps offset the lower multiple for its Oilfield Services & Equipment segment, OFSE, reflecting its “muted views” for this business consistent with its peers.
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JPMorgan Upgraded Petrobras (PBR) from Neutral to Overweight with a price target of $19, up from $16.50. The firm cites the company’s “supportive” free cash flow and “discounted” valuation as reasons for the upgrade.
Top 5 downgrades:
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Morgan Stanley lowered Rivian Automobile (RIVN) to Equal Weight from Overweight with a price target of $13, down from $16. The firm believes Rivian’s ability to drive competitive compute advancements in a financially sensible way is limited.
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Morgan Stanley lowered General Motors (GM) to Underweight from Equal Weight with a price target of $42, down from $47, and ford (F) Overweight to Equal Weight with a price target of $12, down from $16. Morgan Stanley cites expectations for deeper equity losses through decade end, price/mix headwinds and China risks for both Ford and GM downgrades.
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William Blair demoted Global Payments (GPN) to Market Perform from Outperform without a price target following the investor day. The company’s trading operations face structural competitive challenges that are hampering the acceleration of long-term organic revenue growth, the company told investors in a research note. Seaport Research and BTIG also downgraded Global Payments to Neutral following the company’s investor day.
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TD Cowen demoted Expedia (EXPE) maintains a buy rating with a price target of $150, up from $130. The firm says Expedia’s weak business-to-consumer business, which has led to guidance cuts for the past three quarters, could take longer than expected to turn around.
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Piper Sandler lowered Tyson Food (TSN) to Underweight from Neutral with a price target of $50, down from $57. The firm sees more downside risks not priced into the shares.
Top 5 Initiations:
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Wolfe Research has reported on the Apollo Worldwide (APO) with an Outperform rating and a $139 price target. Despite negative revision risk from lower interest rates, the firm sees the stock’s risk-reward as attractive given its deeply discounted valuation relative to peers and multiple positive catalysts.
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Macquarie started reporting on Riot platforms (RIOT) with an Outperform rating and a $15 price target. Riot continues to drive “massive scale” as a pure-play, vertically integrated Bitcoin miner, managing infrastructure, power, compute, and cooling technology. Macquarie also initiated coverage on Mara (MARA), Cipher (CIFR), and CleanSpark (CLSK) with Outperform ratings.
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Truist has the reporting about Perspective Therapeutics (CATX) with a Buy rating and a $21 price target. The company says the company’s two Phase 1 data readouts, one in neuroendocrine tumor and one in melanoma, could potentially provide platform validation and investor credit for its pipeline in the second half of 2024.
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JPMorgan has taken over the coverage of Alcoa (AA) with a Neutral rating and a price target of $36, up from $32, after a period of restrictions. The firm sees limited near-term catalysts for aluminum prices given “conflicting indicators” from China, the U.S. election overhang and the start of a rate cut cycle.
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Oppenheimer restored reporting on McGrath RentCorp (MGRC) with an Outperform rating and a $120 price target. The firm notes that WillScot Holdings (WSC) abandoned its attempt to acquire McGrath on September 18 following an FTC review.
