Apple downgraded, Oracle upgraded: Wall Street’s top analyst calls

Oracle upgrade, Apple downgrade, and Roblox initiation among today’s top calls on Wall Street

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: 

• Goldman Sachs upgraded Oracle (ORCL) to Neutral from Sell with a price target of $120, up from $75, after the company’s "solid" fiscal Q4 report. The results and Q1 guidance alleviated concerns centered primarily on mounting capex requirements to sustain growth in Gen2 OCI, while also diluting gross margin, and "unabating" market share losses in the Oracle’s core database business, the firm says. [Read more]
• Loop Capital upgraded Ulta Beauty (ULTA) to Buy from Hold with a price target of $520, up from $490. The company’s luxury brand expansion represents a multi-year comparable sales growth driver, while the continued rollout of Ulta Beauty at Target (TGT) shop-in-shops will drive incremental income as well as Ultamate Rewards memberships, the firm argues. [Read more]
• Morgan Stanley upgraded Urban Outfitters (URBN) to Overweight from Equal Weight with a price target of $41, up from $27, as part of a broader research note on Specialty Retail. The firm states that the stock is among the names with "sufficiently de-risked" FY23 estimates and a "reasonable or low valuation." [Read more]
• Goldman Sachs upgraded Devon Energy (DVN) to Buy from Neutral with a price target of $58, down from $63. The firm believes Devon’s valuation is "becoming more compelling" and sees potential for well costs to reduce as a function of lower raw material costs. It sees a "mean reversion" in the shares. [Read more]
• Piper Sandler upgraded Assurant (AIZ) to Overweight from Neutral with an unchanged price target of $144. The stock’s valuation offers an attractive entry point as the business-to-business nature of the company’s business profile leaves it less exposed "to the whims of the individual consumer," the firm says. [Read more]

Top 5 Downgrades:

• UBS downgraded Apple (AAPL) to Neutral from Buy with a higher price target of $190, up from $180. The firm sees "persistent softness" in the developed markets for Apple, while citing data indicating that growth is likely to remain under pressure. [Read more]
• Atlantic Equities downgraded PayPal (PYPL) to Neutral from Overweight with a $72 price target. The firm sees "no quick fixes" to PayPal’s branded market share or transaction margins. [Read more]
• Jefferies downgraded Global Payments (GPN) to Hold from Buy with a price target of $105, down from $140, after reinstating coverage following a period of restriction. While the firm believes downside is limited given that the stock’s valuation is "near trough levels," it struggles to see what drives a re-rating in the near term. [Read more]
• Morgan Stanley downgraded Capri Holdings (CPRI) to Equal Weight from Overweight with a price target of $40, down from $55, as part of a broader research note on Specialty Retail. [Read more]
• Goldman Sachs downgraded EOG Resources (EOG) to Neutral from Buy with a price target of $130, down from $137. The firm cites valuation following the stock’s relative outperformance and expectations for lower free cash flow generation for the downgrade. [Read more]

Top 5 Initiations:

• Canaccord initiated coverage of Roblox (RBLX) with a Buy rating and $48 price target. Shares have been volatile since the company came public in early 2021 as investors have grappled with the proper valuation for a business that has experienced "large fluctuations in its growth rate and margins," though the firm sees the potential for upward estimate revisions if Roblox can execute on strategic initiatives to attract more spending to the platform as well as a long-term opportunity to enter new verticals. [Read more]
• Redburn initiated coverage of Applied Materials (AMAT) with a Neutral rating. Hybrid bonding offers a low-risk, low-cost contribution to the compute performance demanded by future artificial intelligence, but the financial impact will be less material to Applied Materials relative to BE Semiconductor, the firm says. [Read more]
• BofA initiated coverage of Peakstone Realty Trust (PKST) with an Underperform rating and $27 price target. The firm says the company’s office exposure and high leverage supports an Underperform rating. [Read more]
• Oppenheimer initiated coverage of Crane NXT (CXT) with an Outperform rating and $70 price target. The firm believes Crane NXT represents an "interesting investment opportunity." [Read more]
• Evercore ISI initiated coverage of 89bio (ETNB) with an Outperform rating and $49 price target. 89bio trades at a 60% discount to peer Akero Therapeutics (AKRO), which has a similar drug candidate in a similar stage of development, which presents "a compelling arbitrage opportunity for investors with a long-term view," the firm says. [Read more]