Wall Street's top analysts say

Domino's Pizza Upgraded, Bumble Downgraded: Top Wall Street Analysts Say

Domino's Pizza Upgraded, Bumble Downgraded: Top Wall Street Analysts Say

Wall Street's most talked-about, market-moving research calls, all in one place. The Fly rounds up today's top research calls investors need to know about.

Top 5 upgrades:

  • Baird upgrades Domino's Pizza DPZ was upgraded to Outperform from Neutral and the price target increased to $580 from $530. With shares down 7.5% from their June peak and increased confidence in the fundamental outlook, Baird sees the stock's risk/reward as more attractive.

  • UBS upgrades PNC Financial (PNC) to Buy from Neutral and increased their price target to $179 from $165. In a research note, the analysts tell investors that PNC is better positioned than most peers to benefit from improving demand, with ample excess capital above minimum requirements, strong organic capital generation, and a significant decline in securities-related AOCI marks over the next 18 months.

  • Raymond James Upgrades Gilead GILD is rated as outperforming the market and has a price target of $93.The analyst says that recent “outstanding” data from the PURPOSE-1 study of long-acting lenacapavir in HIV pre-exposure prophylaxis and expected approval of seradelpar for primary biliary cholangitis later this year should drive the company's revenue growth above current expectations.

  • JP Morgan gets upgraded Ally Financial (Ally) to neutral from underweight and increased their price target to $45 from $39. The upgrade is an acknowledgment that their views on Ally's credit, net interest margin and multiple trajectory were “overly conservative,” the analyst said.

  • BofA upgrades SolarEdge (SEDG) to Neutral from Underperform and set a price target of $29.00 as they believe their negative concerns about the company are reflected in the stock's discounted valuation.

Top 5 Downgrades:

  • Wells Fargo downgraded Bumble The firm changed BMBL to Equal Weight from Overweight and lowered its price target to $10 from $15. The firm said the trend had “gained momentum” with the app's relaunch in late April but had not seen any sustained gains.

  • UBS downgrade KeyCorp (KEY) was upgraded to Neutral from Buy and the price target was lowered to $15 from $16, with the analyst saying an expanded multiple is needed for more attractive upside potential.

  • Guggenheim downgraded Service Now (NOW) was changed to Sell from Neutral with a $640 price target, the analysts wrote in a research note telling investors that the company's July 24 second-quarter report “should be okay,” but the second half of 2024 poses a risk to consensus subscriber estimates, posing “material risk to the stock,” which is currently trading at an “expensive” valuation.

  • Wolf Research downgraded J.P. Morgan (JPM) to Peer Perform from Outperform with no price target. With stock valuations near all-time highs and facing headwinds in net interest income from lower interest rates, Wolf recommends “taking some stocks off the table.”

  • Deutsche Bank downgrade Spirit Airlines (SAVE) from hold to sell and lowered its price target to $2 from $3. The firm said full-service airlines are driving industry profits while low-cost carriers continue to struggle despite record traffic and demand.

Top 5 initiations:

  • Scotiabank is Akamai (AKAM) went public with an outperform rating and a $110 price target. Akamai is the “Rolls Royce of content delivery,” but its future is in security and edge computing, which the analyst told investors he expects will account for about 75% of its business by 2025.

  • Leerink started reporting Levity (RVTY) with an Outperform rating and a $125 price target. The analyst told investors that Revvity has steadily transformed its portfolio over the past few years with a number of acquisitions and a large divestiture, and that it now has a high-growth, high-margin product mix.

  • Mizuho is Ideaya Bioscience (IDYA) has an Outperform rating and a $50 price target, suggesting a 50% upside. The company said that while its near-term focus is on the prospects for its flagship asset, darovasertib, IDYA also has four other novel drug candidates in clinical trials that will help diversify the company.

  • Stevens resumed reporting. Canadian National (CNI) has an equal-weight rating and a $127 price target. The firm believes that a tightening trucking market will improve the rail sector's growth environment through 2025, but service will be important to capture the shift from trucks to rail.

  • Barclays is Alphatech ATEC is bought with an Overweight rating and a $19 price target, the analysts told investors in a research note that despite a challenging first quarter surgical products sales up 55% year over year, concerns over instrumentation and inventory deployment in the first quarter have led to the company's stock valuation below its long-term average and SMID-capped peers, creating an attractive buying opportunity.

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