Yum! downgraded, Cava 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:

• Argus upgraded Cava Group (CAVA) to Buy from Hold with a $70 price target. The stock is down 17% in the past two weeks from its 52-week highs, presenting an opportunity for the company to add it to its Buy list, the firm tells investors in a research note.
• Barclays upgraded Visteon (VC) to Overweight from Equal Weight with a price target of $145, up from $140. The company’s “outgrowth narratives” should accelerate in a flat production environment, supporting a mid-teen annual EBITDA through 2026, the firm tells investors in a research note.
• KeyBanc upgraded GoodRx (GDRX) to Overweight from Sector Weight with a $9 price target. The firm increased estimates and has increased conviction around the company’s monthly active customers, subscriber “green shoots.”
• Wolfe Research upgraded Ionis Pharmaceuticals (IONS) to Outperform from Peer Perform with a $58 price target. The company is highly levered to the HELIOS-B readout from Alnylam (ALNY) due to tech similarity, but the firm contends that Ionis is better positioned to benefit from this catalyst due to favorable reimbursement and supply chain.
• BofA upgraded Canadian National (CNI) to Buy from Neutral with a price target of $145, up from $140. The firm says volumes are trending slightly ahead of its expectations, the grain crop is “not as bad as originally feared” and Canadian appears on track to hit its near-term objective of double-digit earnings growth.

Top 5 Downgrades:

• Argus downgraded Yum! Brands (YUM) to Hold from Buy. The company has reached profitability and achieved its store opening targets last year, but the firm is less positive on its prospects this year as it is likely to see customer traffic decelerate and menu prices plateau as low-income consumers find dining at fast-food chains less affordable.
• Truist downgraded Deckers Outdoor (DECK) to Hold from Buy with a price target of $864, down from $983. Truist says that while it is bullish on Hoka’s long-term potential, recent market reactions to slowing growth have been extremely negative. It now believes the stock’s risk/reward looks balanced.
• Citi downgraded Monday.com (MNDY) to Neutral from Buy with a price target of $250, down from $277. The firm also opened a “90-day negative catalyst watch” on the shares. Citi says its recent partner conversations and web traffic data outlined slowing demand for Monday.com with a more muted impact from price increases.
• Northcoast downgraded Hexcel (HXL) to Neutral from Buy without a price target. The firm cites uncertainty from the CEO change and the possibility of a Federal Aviation Administration on the Boeing 787 (BA) for the downgrade.
• Barclays downgraded Adient (ADNT) to Equal Weight from Overweight with a price target of $37, down from $41, to reflect its view of challenges in achieving significant margin expansion amid a flat LVP environment. The firm also downgraded its sector view for U.S. autos and mobility to Neutral from Positive.

Top 5 Initiations:

• TD Cowen initiated coverage of Floor & Decor (FND) with a Hold rating and $125 price target. While arguing that Floor & Decor’s “compelling moats” position the company for long-term market share growth, the firm says the current valuation “appears full, with shares priced for perfection” and creating a more challenging near-term setup.
• Deutsche Bank initiated coverage of Zions Bancorp (ZION) with a Hold rating and $47 price target. The firm cites a cautious view of the overall bank group currently, Zions’ over-leverage to net interest income, and continued non-interest bearing deposit outflows and deposit migration.
• Goldman Sachs initiated coverage of Alcon (ALC) with a Buy rating and $100 price target. Alcon’s core businesses are delivering solid growth, supported by strong market positions and attractive end markets, the firm tells investors in a research note.
• BofA initiated coverage of MarketAxess (MKTX) with an Underperform rating and $199 price target. The firm cites MarketAxess’ difficulties driving innovation, capability gaps in its growth initiatives and headwinds to credit issuance for its cautious view of the shares.
• Canaccord initiated coverage of Hims & Hers (HIMS) with a Buy rating and $20 price target. Despite the stock’s recent rally, the firm sees a “healthy long-term opportunity,” supported by a recurring and rapidly growing online subscription revenue stream, expanding margins, and positive free cash flow.