The most talked-about and market-moving research calls around Wall Street are now in one place. Here are today’s research calls investors need to know, compiled by The Fly.
Top 5 upgrades:
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Bernstein has upgraded Apple (AAPL) will outperform the market, with an unchanged price target of $195. Bernstein believes the replacement cycle tailwinds and incremental generative artificial intelligence capabilities set Apple up well for a strong iPhone 16 cycle.
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Citi has been updated Shopify (SHOP) to Buy at Neutral with a price target of $105 (previously $93). The company is confident in Shopify’s near-term results following a recent series of conference visits and channel reviews that demonstrate a more resilient e-commerce environment and accelerated market share gains.
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Seaport Research updated Year (ROKU) is Buy from Neutral with a price target of $74 following last week’s Q1 report. The stock’s risk-reward ratio is attractive for a company that plays a central role in the connected TV advertising market and whose advertising is expected to grow in the low double digits this year, the company told investors in a research note.
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Jefferies has upgraded General dynamics (GD) to Buy at Hold with a price target of $335 (previously $305). The company expects the company’s Gulfstream sales to increase 40% in 2024, supporting General Dynamics’ overall growth of 10% in 2024 and 2% in 2025.
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Barclays has received an upgrade AT&T (T) from “Equal Weight” to “Overweight” with an unchanged price target of $20. The company says first-quarter results reinforced the structural push for cable and telecom convergence, which could benefit telecom in the short term “but may not bode well for either industry in the long run.”
Top 5 downgrades:
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Phillip Securities was downgraded Tesla (TSLA) cut its price target from Neutral to $145 (previously $175), citing the company’s Q1 results, which were below expectations due to slower vehicle deliveries and pricing pressure.
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Jefferies was demoted southwest (LUV) falls below Hold with a price target of $20 (previously $28). The company’s first-quarter revenue per available seat mile missed the lowered benchmark just three weeks before the end of the quarter, the company told investors in a research note.
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Barclays was downgraded Lululemon (LULU) from Overweight to Equal Weight with a price target of $395 (previously $546). The company’s growth in the Americas, while still solidly positive, is slowing and offset by China, the company tells investors in a research note.
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Barclays was downgraded Ulta Beauty (ULTA) from Overweight to Equal Weight with a price target of $434 (previously $612). The company cites increased competition and points of distribution, particularly in non-mall brick-and-mortar retail within the company’s beauty segment, a significant year-to-date decline in comps with an earlier and faster decline in the beauty segment, and increased promotions based on its own Brands promotional checks and potential risk to H2 2024 downgrade forecast.
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Wells Fargo downgraded SLB (SLB) from Overweight to Equal Weight with a price target of $53 (previously $68). The company expects SLB’s acquisition of ChampionX (CHX) to provide a modest accretion to earnings but dilution to overall valuation and margins.
Top 5 initiations:
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OTR Global began reporting on Reddit (RDDT) had a positive opinion, saying its reviews showed Reddit ad spending in the first quarter was at least in line with expectations for North American advertising sources.
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Citi has begun reporting Pinnacle West (PNW) with a Neutral rating and a $78 price target. The company says possible structural regulatory reform in Arizona toward formula rates is possible but not likely due to next year’s election.
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JMP Securities has begun coverage on Dave (DAVE) with an Outperform rating and a $70 price target. The company says Dave has achieved financial stability after achieving adjusted EBITDA profitability and is positioning the company as a “promising investment opportunity as it continues to develop its offering and expand into the larger market.”
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Piper Sandler initiated reporting on Abivax (ABVX) with an Overweight rating and a $42 price target. The company’s lead molecule, obefazimod, is on track to emerge as a potential leader in the inflammatory bowel disease category with its differentiated mechanism, competitive efficacy and superior safety, the company told investors in a research note. Guggenheim also initiated coverage on Abivax with a Buy rating and a $50 price target.
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Leerink began reporting on Neurogenic (NGNE) with an Outperform rating and a $46 price target. The company models NGN-401 explicitly for Rett syndrome, thus taking into account potential gene therapy competition. However, it expects that NGN-401 will likely differentiate itself from main competitor Taysha Gene Therapies (TSHA) over time based on tighter control of gene expression in this indication with a narrow therapeutic window.