Yahoo Finance Lululemon initiated, Block upgraded: Wall Street's top analyst calls
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:
Phillip Securities upgraded Block (SQ) to Buy from Accumulate with a price target of $96, up from $94. The firm cites the recent share weakness for the upgrade.
Baird upgraded Datadog (DDOG) to Outperform from Neutral with a price target of $140, up from $130. The firm cites weakness in the shares yesterday and improving optimization and consumption trends for the upgrade.
Wells Fargo upgraded Hexcel (HXL) to Overweight from Equal Weight with a price target of $95, up from $81. The firm sees upside to numbers, less Boeing (BA) 737 MAX risk versus peers and a stock unfairly punished for its CEO transition.
Canaccord upgraded Confluent (CFLT) to Buy from Hold with a price target of $35, up from $28. The firm previously downgraded shares to a Hold in November on the heels of a surprising consumption model transition announcement, accompanied by a soft FY24 outlook, but it now sees a positive risk/reward as the company works its way through a transition that has "progressed better than expected."
Deutsche Bank upgraded Boston Beer (SAM) to Hold from Sell with a $273 price target. The firm noted that the stock in recent days has been trading below the firm's price target, as investors have been growing increasingly concerned about the decelerating Twisted Tea growth amidst rising competition, and still-disappointing trends across the balance of the company's portfolio in a generally questionable demand environment for broader beer.
Top Downgrades:
Barclays downgraded Victoria's Secret (VSCO) to Underweight from Equal Weight with a price target of $14, down from $15. Promotional checks suggest elevated discounting has continued this year despite Victoria's efforts to improve its inventory position, the firm says.
BofA downgraded Inspire Medical (INSP) to Neutral from Buy with a price target of $225, down from $265. Inspire still has strong revenue growth, but the leading indicators of this growth has been below trend for three straight quarters, says the firm.
Goldman Sachs downgraded ZoomInfo (ZI) to Sell from Neutral with a price target of $12, down from $19.50. The company's Q1 results suggest ongoing macro challenges and execution hurdles, the firm tells investors in a research note. Piper Sandler also downgraded ZoomInfo to Neutral from Overweight with a price target of $15, down from $24.
Exane BNP Paribas downgraded WK Kellogg (KLG) to Underperform from Neutral with a $20 price target. The firm believes the company's long-term margin potential is now fully priced into the shares and says WK Kellogg's 2026 adjusted EBITDA margin target is a "milestone, not a destination."
Needham downgraded Beyond (BYON) to Hold from Buy with no price target after its Q1 earnings miss.
Top Initiations:
BTIG initiated coverage of Lululemon (LULU) with a Buy rating and $425 price target. The stock's pullback provides an "attractive entry" for this "quality growth story" as the company has proven its ability to weather various macro, fashion, and competitive cycles, the firm tells investors in a research note.
Barclays reinstated coverage of Chart Industries (GTLS) with an Equal Weight rating and $193 price target. No longer a specialty supplier, the Howden deal has transformed Chart into an industrial energy company with upside from liquified natural gas, hydrogen and specialty markets, underpinned by a growing aftermarket business and steady industrial gas demand, the firm tells investors in a research note.
BofA initiated coverage of Sutro Biopharma (STRO) with a Buy rating and $12 price target. The firm believes luvelta, which is currently in Phase 3, could address high unmet need in platinum-resistant ovarian cancer.
