Block upgraded, Bristol Myers 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:

• Daiwa upgraded Block (SQ) to Buy from Outperform with a price target of $77, up from $71. The stock had seen a significant price adjustment due to continued negative news, such as consumption adjustment and a short seller report, but due to what the firm sees as “a significant improvement in the profit outlook” after the Q3 financial results, it judges that the shares have “become extremely undervalued” and although concerns simmer.
• Barclays upgraded Wix.com (WIX) to Overweight from Equal Weight with a price target of $130, up from $105. The firm says Wix.com’s Partners is scaling well as few competitors address this channel effectively.
• JPMorgan upgraded VF Corp. (VFC) to Neutral from Underweight with a price target of $19, up from $15, after meeting with management. The firm cites greater clarity on VF’s profit inflection in fiscal 2025 for the upgrade.
• BofA upgraded American Eagle (AEO) to Neutral from Underperform with a price target of $19, up from $12.50. The firm sees near-term momentum for upward estimate revisions driven by stronger than expected revenue.
• Citi upgraded Vipshop (VIPS) to Buy from Neutral with a price target of $20, up from $18. The company reported a solid Q3 and the Q4 sales guidance reflects management’s conservative style following a warmer October that negatively impacted apparel demand, the firm tells investors in a research note.

Top 5 Downgrades:

• Cantor Fitzgerald downgraded Bristol Myers (BMY) to Neutral from Overweight with a price target of $55, down from $68. The firm says its “new launch thesis just hasn’t materialized” and there is no line of sight to restoring investor confidence in Bristol’s new product launches and pipeline.
• Jefferies downgraded Beauty Health (SKIN) to Hold from Buy with a price target of $1.50, down from $11. The firm sees potential for more issues to arise, including the same problems happening to Syndeo 3.0, issues spreading to international, balance sheet risk with $700M debt due in 2026, and investor confidence impaired.
• JPMorgan downgraded Canadian Solar (CSIQ) to Underweight from Neutral with a price target of $22, down from $32. The stock has modestly outperformed peers over the past couple of months despite significant declines in global module selling prices, which presents downside risk over the next few quarters, the firm tells investors in a research note.
• BTIG downgraded Workhorse Group (WKHS) to Neutral from Buy with no price target after the company reported Q3 earnings and lowered revenue guidance “again.”
• Canaccord downgraded Fluent (FLNT) to Hold from Buy with a price target of $2, down from $3. The company reported “pressured” Q3 results, with revenue, media margin, and profitability all down significantly year-over-year and quarter-over-quarter as the recent FTC settlement led to the company exiting certain revenue streams that no longer meet its evolving quality standards, and a major gaming client reduced spend, the firm says.

Top 5 Initiations:

• Wells Fargo initiated coverage of BioMarin (BMRN) with an Overweight rating and $100 price target. The firm says the company’s enzyme replacement therapy business alone could be worth $87 per share, and margin expansion could lead to 23% annual earnings growth in the next five years.
• Wells Fargo initiated coverage of Warner Music (WMG) with an Equal Weight rating and $35 price target. While the cadence of new releases has improved, Wells remains on the sidelines until it sees sustained share recovery and get more clarity on tech investments.
• Barclays initiated coverage of several within U.S. consumer finance. The firm is taking a selective stance, balancing the uncertainty around the macro and rate outlook with discounted valuations. Barclays put Overweight ratings on nine stocks: American Express (AXP), OneMain Holdings (OMF), SLM (SLM), PennyMac Financial (PFSI), Mr. Cooper (COOP), Essent Group (ESNT), NMI Holdings (NMIH), AerCap (AER) and Air Lease (AL). The firm put Underweight ratings on three stocks: Rocket Companies (RKT), UWM Holdings (UWMC) and Bread Financial (BFH).
• Northland initiated coverage of Hyster-Yale Materials (HY) with an Outperform rating and $80 price target. While current revenue generation from this business is “immaterial,” the firm sees it as “a low-priced call option on an exciting market.”
• William Blair initiated coverage of Reneo Pharmaceuticals (RPHM) with an Outperform rating and $35.55 fair value estimate. Blair says that although Reneo has a minimalist pipeline, it sees potential for the roliferator-activated receptor-delta agonist agonist mechanism to be applied in other mitochondrial disorders.