Buy/Sell: Wall Street’s top 10 stock calls this week

Wall Street experts reveal the five stocks to buy, five stocks to sell this week

What has Wall Street been buzzing about this week? Here are the top 5 Buy calls and the top 5 Sell calls made by Wall Street’s best analysts during the week of March 20-March 24.
 
Find all top-rated stocks by the best-rated analysts on TipRanks.

Top 5 Buy Calls:

1. Macquarie upgrades Microsoft to Outperform on "ground-breaking" investment

Macquarie upgraded Microsoft (MSFT) to Outperform from Neutral with a price target of $325, up from $260. The company reported a better-than-expected fiscal Q3 as Azure "fared well," the firm tells investors in a research note. Macquarie saw a milder deceleration in Azure than many were expecting on macro softness, and highlights the company’s "ground-breaking" investment into OpenAI. It believes Microsoft will continue to outperform thanks to growth, earnings, new business opportunities with generative artifices intelligence, and what it views as a growing likelihood of the Activision Blizzard (ATVI) acquisition closing.

2. Medtronic upgraded to Overweight at Barclays after diabetes system approval

Barclays  upgraded Medtronic (MDT) to Overweight from Equal Weight with a price target of $104, up from $89, after the FDA announced approval of Medtronic’s 780G system. Approval of the 780G pump and Guardian 4 sensor provides a favorable outcome to one of the issues keeping the firm on the sidelines. Barclays adds that it thinks it is "time to get more constructive on the stock" with fiscal Q4 results the FY24 outlook about four weeks away. The pump and sensor approval lifts uncertainty related to diabetes and "opens the door for potential approval" of the company’s next-gen Simplera sensor, the firm added.

Wells Fargo also upgraded Medtronic to Overweight from Equal Weight with a price target of $100, up from $77, adding that it thinks the company will benefit from an improvement in the underlying medtech markets. Furthermore, Wells Fargo believes the pipeline is improving and that valuation appears attractive.

3. Coinbase initiated with a Buy at H.C. Wainwright

H.C. Wainwright initiated coverage of Coinbase (COIN) with a Buy rating and $75 price target. Coinbase is the largest centralized cryptocurrency exchange in the U.S. and second largest in the world, processing $830B in total crypto trading volume for retail and institutional investors in 2022, the firm tells investors in a research note. H.C. Wainwright is not ruling out the potential for additional downward share pressure over the short-term as investors learn more about the SEC’s probe and potential actions against Coinbase. However, it is "very constructive" on shares over the near- to medium-term based on the current valuation and where we are in the crypto price cycle. "Crypto winter is over, and spring has sprung."

4. Piper Sandler bullish on VF Corp., initiates with an Overweight

Piper Sandler initiated coverage of VF Corp. (VFC) with an Overweight rating and $29 price target. Despite poor execution at Vans, VF has a portfolio of strong brands, Piper tells investors in a research note. The firm thinks continued momentum at The North Face, a brand reset at Vans, easier Dickies compares, and margin expansion as heightened supply chain related expenses as lapped position VF well for earnings growth.

5. Squarespace upgraded to Buy from Neutral at Citi 

Citi upgraded Squarespace (SQSP) to Buy from Neutral with a price target of $40, up from $30. The firm says an improved growth outlook results in "upside tension" to near-term and long-term estimates. Squarespace’s "strong" Q4 results and fiscal 2023 guide showed improvements and accelerating growth to the business. In addition, Citi’s web builders survey shows web professionals viewing Squarespace as having strong functionality, which demonstrates its competitive positioning, says the firm. It sees the company’s improvement continuing into 2024 and beyond.

Top 5 Sell Calls:

1. Citi downgrades First Solar to Sell, says IRA benefits fully priced in

Citi downgraded First Solar (FSLR) to Sell from Neutral with a price target of $194, down from $220. Solar module supply-demand fundamentals indicate a challenging long-term outlook for First Solar and may raise questions around terminal value of the company’s assets, Citi tells investors in a research note. The firm says global excess supply of polysilicon and PV modules should put downward pressure on module sell prices, limiting First Solar’s ability to contract volumes beyond 2026 at attractive prices. Furthermore, U.S. domestic module supply is likely to exceed demand starting 2026, contends Citi. It also believes Inflation Reduction Act benefits are now fully reflected in First Solar shares.

2. First Republic cut to Sell at Citi after loss of deposits

Citi downgraded First Republic (FRC) to Sell from Neutral with an $11 price target after reinstating coverage of the shares. The bank lost over $100B of deposits in Q1 excluding the $30B it received from the large banks, the analyst tells investors in a research note. The firm says First Republic’s high cost of borrowings relative to its earnings assets puts it "under-water" and likely generates losses until it can "right-size" the balance sheet.

3, Day One Biopharmaceuticals double downgraded at BofA on regulatory risks 

BofA double downgraded Day One Biopharmaceuticals (DAWN) to Underperform from Buy with a price target of $9, down from $34, citing near-term regulatory risks as key opinion leader checks and the firm’s analysis of prior FDA briefing documents signal a "growing resistance" to single-arm studies. Day One’s tovorafenib will have full pivotal data in r/r pLGG at an upcoming conference, followed by an NDA submission in Q2, and the firm thinks "there is risk that both of these events will be negative catalysts."

4. ADC Therapeutics downgraded to Underperform at BofA on Zynlonta headwinds

BofA downgraded ADC Therapeutics (ADCT) to Underperform from Neutral with a price target of $2, down from $7. Zynlonta is currently approved in the third-line plus DLBCL setting, but the launch so far has been "underwhelming" and the firm views the CLBCL treatment landscape as "highly competitive." In addition, key opinion leaders the firm speaks with view the third-line plus DLBCL setting as "exploratory, with high interest for clinical trial participation, BofA added.

5. ASGN double downgraded to Underperform at BofA 

BofA downgraded ASGN (ASGN) to Underperform from Buy with a price target of $66, down from $109. The firm had previously expected ASGN to outperform the rest of the staffing sector, but client demand for its staffing services has proved to be more discretionary than anticipated. With sales growth deteriorating significantly from "an early tough start to the year," BofA says it worries that results will "continue to disappoint through year-end."

Keywords: Wall Street, Buy, Sell, stocks, analyst, analyst calls, upgrades, downgrades, initiations, research