Buy/Sell: Wall Street’s top 10 stock calls 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 September 11-15.
 
Find all top-rated stocks by the best-rated analysts on TipRanks.

Top 5 Buy Calls:

1. Block initiated with a Buy at Berenberg

Berenberg initiated coverage of Block (SQ) with a Buy rating and $75 price target. Block’s share price has declined by more than 34% since the start of August, but its improving outlook for profitability reflects significant operating leverage and the pullback presents “an attractive entry point,” the firm tells investors. Berenberg believes Block has reached an inflection point regarding its profit power and “has plenty of runway for increased profitability.”

2. Etsy upgraded to Outperform from Peer Perform at Wolfe Research

Wolfe Research upgraded Etsy (ETSY) to Outperform from Peer Perform with a $100 price target. The shares have underperformed peers year-to-date and there are plenty of near-term uncertainties due to the weakening macro environment, the firm tells investors in a research note. However, Wolfe Researchsees “many paths” for Etsy shares to outperform over the next 12-18 months. A recovery in discretionary spending when the macro improves in fiscal 2024 should accelerate the company’s EBITDA growth from current levels, the firm contends. Wolfe finds the stock’s risk/reward attractive at current levels.

3. General Motors assumed with Buy at UBS, which says negativity “priced in”

UBS upgraded General Motors (GM) to Buy from Neutral with a price target of $44, up from $41, after a different analyst at the firm took over coverage of the stock. Assuming a strike does not occur, UBS sees second half earnings upside compared to consensus and argues that the current “negativity” priced into the shares creates an attractive risk/reward. GM’s stock is off about 16% since mid-July, notes the firm, which thinks a possible UAW settlement and the company’s November 16 analyst day could be catalysts for the shares.

4. First Solar upgraded to Outperform from Market Perform at BMO Capital

BMO Capital upgraded First Solar (FSLR) to Outperform from Market Perform with an unchanged price target of $237. The stock stock has declined by an “unwarranted degree” following the company’s recent analyst day, the firm tells investors in a research note. BMO believes consensus estimates through 2026 are too low, but says investors remain focused on 2027 earnings power where First Solar is not fully sold out. However, at its current share price, and even using our conservative assumptions for declines in selling prices and utilization rates, the stock’s risk/reward is attractive on “normalized” post 2026 adjusted EBITDA, contends BMO.

5. CVS Health upgraded to Outperform from Peer Perform at Wolfe Research

Wolfe Research upgraded CVS Health (CVS) to Outperform from Peer Perform with an $80 price target, citing confidence in Stars improvement coupled with potential for CVS to take steps to set more reasonable expectations for long term earnings growth at its December investor day for the upgrade. Wolfe sees potential for CVS to take steps to more reasonably set expectations for earnings growth in 2025 and beyond in the high single digit range. As such, it believes the stock’s risk/reward profile in the intermediate term has turned positive.

Top 5 Sell Calls:

1. RTX downgraded to Underperform at BofA on increased GTF-related risks

BofA downgraded RTX (RTX) to Underperform from Neutral with a price target of $75, down from $95, following recent geared turbofan, or GTF, developments. While some may think RTX is now a “value” investment following a nearly 10% decline since the company said it will recognize a Q3 charge of $3B due to the Pratt & Whitney issues, the firm advises caution as it sees “significant near-term risks” and thinks RTX will underperform the analyst’s coverage universe until there is a clearer understanding of the necessary fixes, customer concessions and organizational changes in the wake of this “egregious manufacturing oversight.”

2. Beyond Meat initiated with an Underperform at TD Cowen

TD Cowen initiated coverage of Beyond Meat (BYND) with an Underperform rating and $10 price target. The firm believes the majority of companies in the U.S. packaged foods sector raised the prices too high on “structurally challenged brands and now face a formidable cyclical downturn.” TD sees risk of price discounting, subdued volume growth, and margin pressure over the next 12 months.

3. Sight Sciences downgraded to Underperform at BofA on Medicare uncertainty

BofA downgraded Sight Sciences (SGHT) to Underperform from Neutral with a price target of $4.50, down from $10, after the company guided Q3 revenue 18% below Street consensus at the midpoint as the uncertainty from proposed Medicare coverage changes for surgical glaucoma products has hurt ordering activity. The firm sees limited upside potential for the stock until there is clarity on the finalized local coverage determination, or LCD.

4. CNX Resources downgraded to Underperform from Sector Perform at Scotiabank

CNX Scotiabank downgraded CNX Resources (CNX) to Underperform from Sector Perform with an unchanged price target of $22. The firm updated its financial and NAV estimates, including a full refresh of economic estimates, for its U.S. natural gas coverage group.

5. KeyBanc starts Cousins at Underweight, sees near-term underperformance

KeyBanc initiated coverage of Cousins Properties (CUZ) with an Underweight rating and $19 price target. The firm views Cousins’ Class A Sun Belt portfolio to be attractive, given relatively steady fundamentals throughout the pandemic, partially driven by positive migration trends and higher levels of office utilization compared to Coastal peers. KeyBanc added that it expects near-term relative underperformance driven by normalizing migration trends.