Best Buy upgraded, Nike downgraded: 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:

• JPMorgan upgraded Best Buy (BBY) to Overweight from Neutral with a price target of $101, up from $89. The analyst believes the company’s share of wallet pull-forward in computing, TVs and appliances is at, or nearing, an end, with a higher installed based of electronics nationally supporting a “soft landing” this year.
• Redburn Atlantic upgraded Verizon (VZ) to Neutral from Sell with a price target of $39, up from $33, implying 4% potential downside to the current share price. The analyst cites improving subscriber trends, the company’s exposure to falling rates and “healthy dividend cover” for the upgrade.
• Citi upgraded Foot Locker (FL) to Neutral from Sell with a price target of $24, up from $19. The firm says that while there is no guarantee Foot Locker will benefit from Nike’s (NKE) product pivot, there seems to be a higher likelihood Foot Locker could see better allocation.
• TD Cowen upgraded Charles Schwab (SCHW) to Outperform from Market Perform with a price target of $87, up from $70. The firm believes the backdrop is “incrementally more conducive” for the retail broker dealers for net interest margins and capital markets, noting that its latest EPS revisions put it “at or above consensus mostly.”
• Janney Montgomery Scott upgraded Sunnova Energy (NOVA) to Buy from Neutral with an unchanged fair value estimate of $12. While the firm is not adjusting its overall thesis on the growth and margin outlook, it notes that the several weeks of significant trading weakness following the company’s Q4 report have been “generally more acute and pronounced than what we had originally expected in February.”

Top 5 Downgrades:

• RBC Capital downgraded Nike to Sector Perform from Outperform with a price target of $100, down from $110. Nike’s unexpected first glance guidance for the first half of 2025 implies no revenue growth for calendar 2024, “which leaves little to play for in the near term,” the analyst tells investors in a research note.
• Argus downgraded Pfizer (PFE) to Hold from Buy. The company is faced with near-term headwinds to its top-line growth as it has guided to 2024 3%-5% revenue growth ex-COVID products and Seagen acquisition, down from 7% growth in 2023, the firm says.
• Janney Montgomery Scott downgraded SolarEdge (SEDG) to Neutral from Buy with a $63 fair value estimate after catching up with the company’s head of IR, J.B. Lowe, last week. The commentary from the meeting was consistent with Q4 earnings call commentary in late February around channel inventory destocking trends in the U.S. and Europe, the competitive landscape in the U.S. and Europe.
• Goldman Sachs downgraded Stem (STEM) to Neutral from Buy with a price target of $2.50, down from $5.50. The analyst sees a lack of catalysts in the near-to medium-term and believes the stock’s risk/reward no longer skews as positive pending better execution following several periods of weaker than expected financial results.
• BTIG downgraded Papa John’s (PZZA) to Neutral from Buy with no price target following the departure of CEO Rob Lynch, who is leaving to assume the same post at Shake Shack (SHAK). Given the “sudden nature of this announcement” and lack of seasoned leadership at Papa John’s, the firm thinks the company could struggle until a new leader and game plan are announced, the analyst tells investors.

Top 5 Initiations:

• Piper Sandler last night initiated coverage of Constellation Brands (STZ) with an Overweight rating and $300 price target. The analyst expects long-term, sustainable U.S. share gains in beer, helped by demographic and distribution tailwinds.
• BMO Capital initiated coverage of Array Technologies (ARRY) with a Market Perform rating and $16 price target. The analyst is constructive on global demand for solar trackers and believes excluding China total addressable markets will more than double by the end of the decade, but despite a current deep valuation discount, Array’s recent results and guidance suggest a reduction of market share, the analyst tells investors in a research note.
• Citi initiated coverage of Talos Energy (TALO) with a Buy rating and $16.50 price target. The analyst favors the company’s “prudent strategy” composed of a balanced combination of acquisitional and organic growth with moderate operational upside.
• Capital One initiated coverage of GitLab (GTLB) with an Overweight rating and $72 price target.