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 Upgrades:
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Morgan Stanley upgraded Seagate Technology (STX) to Overweight from Equal Weight with a price target of $115, up from $73. The firm says a cyclical recovery, technology leadership, and the potential for generative artificial intelligence-related demand means Seagate is entering a period of structurally stronger gross margins.
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Jefferies upgraded Clorox (CLX) to Hold from Underperform with a $145 price target following the company’s exit from Argentina, Uruguay and Paraguay, which the firm views positively.
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Stifel upgraded Tandem Diabetes (TNDM) to Buy from Hold with a price target of $37, up from $24. The firm sees the second round of Mobi-specific diligence – and first since its full-launch – painting a “bullish picture” for the stock, noting that its survey suggests that Mobi adoption is potentially occurring more-rapidly and to a greater magnitude-than-expected while also resonating with physicians.
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Goldman Sachs upgraded Nasdaq (NDAQ) to Buy from Neutral with a $73 price target, implying 18% upside from current levels. Following several years of “challenged” earnings growth, Nasdaq’s earnings trajectory accelerating to 12% in 2025 and 2026 supported by the integration of Adenza, the firm tells investors in a research note.
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Evercore ISI upgraded PagBank (PAGS) to Outperform from In Line with a price target of $18, up from $12. The firm sees several cyclical and secular tailwinds creating an inflection in revenue and earnings growth in 2024-2026, including accelerated TPV growth, stabilizing take rates, rising gross profit yields, rising client deposits, declining interest rates and reduced margin pressure.
Top Downgrades:
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Berenberg downgraded Stellantis (STLA) to Hold from Buy with a price target of EUR 29, up from EUR 21, as it sees little meaningful near-term upside. With the 2023 earnings season now over, automotive manufacturers have set the scene for a challenging 2024, the firm tells investors in a research note.
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UBS downgraded Embraer (ERJ) to Neutral from Buy with a price target of $28.50, up from $21. Following the recent rally, the shares are pricing in “positive optionalities,” given that the current stock price implies $700M EBITDA, the top range guidance, leaving virtually no meaningful upside potential, the firm tells investors in a research note.
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Craig-Hallum downgraded Aehr Test Systems (AEHR) to Hold from Buy with a price target of $12, down from $25, after the company negatively pre-released its Q3 results and lowered its full year 2024 expectations.
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UBS downgraded PJT Partners (PJT) to Sell from Neutral with a price target of $75, down from $100. The firm sees limited earnings growth in the near-term due to a “substantial ramp” in deferred comp expense and a “narrow path” to sufficient revenue growth to offset that expense growth.
Top Initiations:
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New Street initiated coverage of Reddit (RDDT) with a Neutral rating and $54 price target after the stock closed at $59.80 on Monday, up 76% from its $34 IPO price. The firm expects volatility in the shares into the first earnings report, which it assumes will come in early May, and three days after when the lockup expires.
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TD Cowen initiated coverage of Qualys (QLYS) with a Hold rating and $170 price target. Despite the company’s solid cash position and ability to generate industry-leading margins, Qualys has been “rapidly” losing market share and its revenue growth from new customers and subscription up-selling have developed below expectations, the firm tells investors in a research note.
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RBC Capital initiated coverage of Paccar (PCAR) with a Sector Perform rating and $123 price target. At a time when truck demand is moving down and consensus margin expectations appear optimistic, the firm does not think that now is the time to increase exposure.
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Wolfe Research initiated coverage of MSCI (MSCI) with a Peer Perform rating and fair value range of $605-$625 per share. The firm believes the company has among the highest sales growth potential compared to its information services peers.
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Wells Fargo resumed coverage of Realty Income (O) with an Equal Weight rating and $57 price target. The firm says that while Realty Income is positioned to leverage a strong balance sheet and access to capital to generate growth, the law of large numbers is such that its growth potential is likely to lag smaller Net Lease peers.
