Boeing, Paramount 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 Upgrades:

• BofA upgraded MSCI (MSCI) to Neutral from Underperform with a price target of $525, up from $425. The firm thinks the recent stock pullback is pricing in an “unlikely worst-case scenario” and sees pending upside support from buybacks.
• DA Davidson upgraded Hope Bancorp (HOPE) to Buy from Neutral with a $12.50 price target following its announced merger with Territorial Bancorp (TBNK). The transaction is expected to be double-digit EPS accretive in 2025, with limited credit risk and a long tail of discount accretion benefit, says the firm.
• Janney Montgomery Scott upgraded Citizens Financial Services (CZFS) to Buy from Neutral with a $53 fair value estimate. Citizens is trading at a discount multiple to not only tangible book value per share, but also to the peer group, for the first time in over 10 years, notes the firm, which believes shares are undervalued.
• Barclays upgraded Deciphera (DCPH) to Equal Weight from Underweight with a $26 price target after the company entered into a definitive merger agreement with Ono Pharmaceutical for Ono to acquire Deciphera for $25.60 per share through a tender offer.

Top Downgrades:

• Argus downgraded Boeing (BA) to Hold from Buy without a price target. The shares have fallen 35% this year due to new problems with the Max airplane that have ultimately led to the replacement of the board chairman and early retirement of the CEO, the firm tells investors in a research note.
• Needham downgraded Paramount (PARA) to Hold from Buy after its Q1 results and a 9-minute-long earnings call with no Q&A. The firm is citing the shift in leadership from one CEO to a committee of three, saying it is difficult to argue that three leaders can create more value than a single leader with board accountability.
• Jefferies downgraded Chegg (CHGG) to Underperform from Hold with a price target of $4, down from $7. The company’s Q1 print included Q2 guidance that was below consensus, which suggests continued headwinds, the firm tells investors in a research note. Craig-Hallum also downgraded Chegg to Hold from Buy with a price target of $7, down from $13.
• Craig-Hallum downgraded Sanmina (SANM) to Hold from Buy with a $62 price target. The firm notes Sanmina reported mixed Q2 results with modestly lower-than-expected revenue continuing to be impacted by customer inventory digestions, though paired with better-than-expected profitability given favorable mix.
• Goldman Sachs downgraded XP Inc. (XP) to Neutral from Buy with a price target of $23, down from $30. The firm sees risks that interest rates in Brazil can remain higher for longer.

Top Initiations:

• Jefferies initiated coverage of Ralph Lauren (RL) with a Buy rating and $195 price target. The firm likes the company for increasing brand quality, margin expansion, and management execution.
• Deutsche Bank initiated coverage of Live Nation (LYV) with a Buy rating and $120 price target. The firm believes the company will deliver consistent double-digit growth in adjusted operating income in the coming years based on strong secular fundamentals.
• Jefferies initiated coverage of PVH Corp. (PVH) with a Hold rating and $115 price target. While the shares are “now cheap after recent Europe weakness,” Jefferies wants to see sales stabilization and cost saving execution before stepping into the name.
• RBC Capital initiated coverage of Contineum (CTNM) with an Outperform rating and $30 price target. The firm is optimistic about the long-term prospects of Contineum’s portfolio. Morgan Stanley and Stifel also started coverage of the stock with Buy-equivalent ratings.
• Morgan Stanley initiated coverage of Dyne Therapeutics (DYN) with an Overweight rating and $40 price target. The firm believes initial data across the company’s co-lead programs, DYNE-101 and DYNE-251, validates the broad potential of the Force platform in serious muscle diseases.