The most talked about and market-moving research calls on Wall Street are now collected in one place. Here are today’s research calls that investors need to know, as compiled by The Fly.
Top 5 upgrades:
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Raymond James has done a double upgrade Public storage (PSA) to Strong Buy from Market Perform with a $330 price target. The company believes the company’s recent revenue growth outperformance can be sustained relative to peers, thanks to more rent increases following less aggressive rate hikes in recent years.
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Evercore ISI upgraded Kimberly Clark (KMB) to outperform In Line with a $150 price target, up from $133. The company says that if the stock is trading one standard deviation below its 20-year average versus Staples, the stock should work, if only as a “regression to the mean” investment strategy.
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HSBC upgraded American Bancorp (USB) to buy off hold with a $53 price target, up from $47. US Bancorp, along with the other super regional banks, has significantly underperformed the universal banks and the market year to date, which according to the company, has led to purchasing opportunities.
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HSBC upgraded PNC financial (PNC) moves from Hold to Reduce with a price target of $155, up from $141. The company sees a more attractive relative valuation following the stock’s underperformance this year and the integration of higher long-term return on equity into the company’s valuation framework.
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HSBC upgraded All states (ALL) to buy off hold with a price target of $190, up from $158. The company says rate increases for personal auto and homeowners insurance continue to increase in the US. Slowing inflation trends put U.S. personal insurance insurers “in a good position.”
Top 5 downgrades:
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Monness Crespi has downgraded its rating Palantir Technologies (PLTR) to sell from Neutral with a $20 price target. The stock is trading at an “excessively rich valuation” due to the “unprecedented generative AI hype cycle,” the company notes.
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BofA reduced Molina Healthcare (MOH) to Underperform from Neutral with a $439 price target. The company, concerned that Molina and the broader Medicaid industry are likely to face rate pressure after a period of high margins, sees a less attractive risk/reward for Molina compared to other insurers it covers.
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HSBC relegated bank of America (BAC) to Hold from Buy with a price target of $39, up from $38. While there’s a lot to like about Bank of America, its shares are up 37% over the past six months, leaving limited implied upside potential, the company tells investors in a research note.
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Raymond James has downgraded its rating Extra space storage (EXR) will outperform Strong Buy with an unchanged price target of $160. The company remains constructive on the stock, but says the synergies from the $100 million Life Storage merger, while still feasible, will take longer to fully realize as the overall self-storage market has weakened. Extra Space is now a heavily overweight name within the group, which carries some risk if fundamentals disappoint.
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BofA reduced Galapagos (GLPG) to Underperform from Neutral with a $31 price target, down from $41. The company is concerned that the stock “remains a value trap.”
Top 5 initiations:
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BTIG started coverage of CyberArk (CYBR) with a Buy rating and a $317 price target. After field checks with customers, partners and industry analysts, the company sees multiple factors driving continued growth in the privilege account management market, where it notes that CyberArk is in “a strong leadership position” and gaining market share.
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DA Davidson started reporting on Progress software (PRGS) with a Buy rating and a $65 price target. Progress has “maintained relevance for decades with its deep-rooted and uniquely profitable application development platform,” OpenEdge, while recently successfully executing its M&A strategy, the company notes.
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Piper Sandler started reporting on it TransMedics (TMDX) with an Overweight rating and a $95 price target. The company believes the company is transforming the organ transplant market with patented organ preservation technologies and in-house transportation services.
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Truist started the coverage of Merus (MRUS) with a Buy rating and a $69 price target. The company expects petosemtamab to be “highly effective” in combination with immunotherapy in the frontline of head and neck cancer.
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William Blair started reporting on it Solid life sciences (SLDB) with an Outperform rating and an estimated fair value of $40. The company believes the company is entering a period where it will be a “fast follower” in Duchenne muscular dystrophy.
