Airbnb downgraded, Moderna initiated: 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 Upgrades:

• JPMorgan upgraded AvalonBay Communities (AVB) to Neutral from Underweight with a price target of $194, down from $201, following the investor day. The company laid out some brackets for 2024 revenue and expense growth, and the starting point is stronger than its multifamily peers, the firm tells investors in a research note.
• BofA upgraded RBC Bearings (RBC) to Buy from Underperform with a price target of $280, up from $230, to reflect stronger EBITDA margins and lower dilution from 2024 convertibles.
• Morgan Stanley upgraded Tuya (TUYA) to Overweight from Equal Weight with a price target of $2.70, up from $1.80, telling investors that Q3 marks the second consecutive quarter of “solid revenue beats.”

Top Downgrades:

• Jefferies downgraded Airbnb (ABNB) to Hold from Buy with a price target of $140, down from $155. A recent slowdown in bookings increases risk of downside to consensus estimates, making the story more reliant on potential take rate expansion, the firm tells investors in a research note.
• Northland downgraded NetApp (NTAP) to Market Perform from Outperform with an increased $100 price target as the firm believes the shares are being fairly valued now.
• Piper Sandler downgraded Hershey (HSY) to Neutral from Overweight with a price target of $200, down from $240, as the firm trims its estimates due to higher cocoa costs driven by supply shortages.
• Exane BNP Paribas double downgraded Floor & Decor (FND) to Underperform from Outperform with a $72 price target. The firm has near-term concerns around capital intensity, leverage, and expense growth.
• Seaport Research downgraded Constellation Energy (CEG) to Neutral from Buy with no price target. There won’t be clarity on nuclear tax credits, or PTCs, until the Spring and questions remain on how Constellation will monetize the nuclear PTCs once they are earned, as well as how the credits will be reflected in earnings, the firm tells investors.

Top Initiations:

• Canaccord initiated coverage of Moderna (MRNA) with a Hold rating and $82 price target. The firm says that while there exists significant opportunity, it thinks on a risk-adjusted basis the stock’s current valuation properly reflects the risk/reward.
• BofA resumed coverage of Mercury Systems (MRCY) with an Underperform rating and $30 price target. The firm believes the road to margin and free cash flow expansion will be “long and winding.”
• JPMorgan reinstated coverage of Albemarle (ALB) with a Neutral rating and price target of $130, down from $250, following a period of restriction. The decreasing lithium prices are yet to be reflected in earnings, the firm tells investors in a research note.
• RBC Capital initiated coverage of Korro Bio (KRRO) with an Outperform rating and $70 price target. Korro Bio’s approach in RNA editing has clear strategic interest that may have an easier path to approval and commercial uptake vs. DNA editing, the firm says.
• Cantor Fitzgerald initiated coverage of Microvast (MVST) with an Overweight rating and $8 price target. Microvast is ramping up production of its latest battery cell and scaling production of existing facilities that have the potential to generate over $1B in annual revenue by the end of next year, the firm says.