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:
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BofA double upgraded Nasdaq (NDAQ) to Buy from Underperform with a price target of $90, up from $53, contending that the company has assembled a “collection of wide-moat and high-growth businesses” in software and information services.
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Morgan Stanley upgraded Boyd Gaming (BYD) to Overweight from Equal Weight with a price target of $74, up from $66. The firm cites stabilizing trends, capital return catalysts and a “compelling valuation” for the upgrade.
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JMP Securities upgraded Sportradar (SRAD) to Outperform from Market Perform with a $16 price target. The company has progressed through several operational and strategic initiatives in the last 12 months that offer an attractive buying opportunity ahead of the NBA season, the firm tells investors in a research note.
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Wolfe Research upgraded Alcoa (AA) to Outperform from Peer Perform with a $36 price target. The firm cites a better alumina outlook and more positive catalysts than negative after the stock’s sharp selloff for the upgrade.
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TD Cowen upgraded Sweetgreen (SG) to Buy from Hold with a price target of $43, up from $31. The firm’s 2025 same-store-sales bridge for Sweetgreen suggests 2024’s strength will drive upside versus 2025 consensus estimates.
Top 5 Downgrades:
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Argus downgraded Airbnb (ABNB) to Hold from Buy. The firm is citing the company slowing room nights growth while also warning that growing competition, soft demand, fewer extended visits, and increased marketing spending are likely to harm the company’s near-term earnings.
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Jefferies downgraded Booking Holdings (BKNG) to Hold from Buy with a price target of $4,200, down from $4,350. The firm’s top-down industry model suggests growth will moderate further over the next three years, which causes it to take estimates below consensus.
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Barclays downgraded Supermicro (SMCI) to Equal Weight from Overweight with a price target of $438, down from $693. The firm cites the company’s “poor” gross margin in the June quarter and the annual filing delay “that evidenced several fundamental risks” for the downgrade.
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Wedbush downgraded Purple Innovation (PRPL) to Neutral from Outperform with a price target of $1.10, down from $1.75. The firm says its “less favorable” recent channel checks indicate Purple is losing slots at key retailers. Wedbush also downgraded Tempur Sealy (TPX) to Neutral from Outperform with an unchanged price target of $52 on valuation.
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Needham downgraded ResMed (RMD) to Hold from Buy without a price target. The firm continues to expect a “modest headwind” from weight loss drugs but acknowledges there is a risk it could be worse than expected.
Top 5 Initiations:
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BofA initiated coverage of Trade Desk (TTD) with a Buy rating and $135 price target. As a leading, independent demand-side platform, or DSP, that has strategically positioned itself within the growing connected TV, or CTV, and Retail Media ad markets, Trade Desk is poised to benefit from anticipated robust growth over the next several years, the firm tells investors.
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Compass Point initiated coverage of Visa (V) with a Buy rating and $319 price target. The firm estimates FY25 EPS of $11.16, noting that its view is above consensus FY25 “core” EPS by 1.2% due to faster revenue growth given its value-added services, or VAS, analysis.
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Compass Point initiated coverage of MasterCard (MA) with a Neutral rating and $525 price target. The firm’s FY25 EPS estimate of $16.41 is below consensus by 1.5% due to less margin expansion.
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BofA initiated coverage of Live Nation (LYV) with a Buy rating and $125 price target, representing 31% upside. The firm views Live Nation, which it calls “the global leader in live concerts and ticketing,” as a growth-oriented, live entertainment company benefiting from favorable trends.
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William Blair initiated coverage of Shift4 Payments (FOUR) with an Outperform rating. The firm expects Shift4 to post above-average revenue, EBITDA and free cash flow growth as it takes market share.