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 November 27 – December 1.

Find all top-rated stocks by the best-rated analysts on TipRanks.

Top 5 Buy Calls:

1. Roku upgraded to Buy from Neutral at Cannonball Research

Cannonball Research upgraded Roku (ROKU) to Buy from Neutral with a $116 price target. The firm believes “room for upside” to fiscal 2024 consensus estimates is enough to allow for more meaningful upward estimates revisions than the firm has seen in recent quarters. The upgrade is not based on an expectation of an improvement in the advertising market trends. Instead, Cannonball assumes a continuation of the trends sees since Q2 of fiscal 2022. Consensus estimates for fiscal 2024 appear to be doable with room for upside if trends don’t deteriorate, the firm tells investors in a research note.

2. Snap upgraded to Buy from Hold at Jefferies

Jefferies upgraded Snap (SNAP) to Buy from Hold with a price target of $16, up from $12. The firm sees catalysts for revenue growth upside in fiscal 2024. Jefferies believes the stock re-rates higher on North America revenue growth reaccelerating into the mid-teens in 2024. The firm has increasing optimism around the recovery in the direct response platform.

3. New Street starts Pinterest at Buy, names new top SMID cap pick

New Street initiated coverage of Pinterest (PINS) with a Buy rating and $48 price target. The firm made Pinterest its new top SMID cap pick, saying near-term adjusted EBITDA consensus estimates have upside and the company’s long-term guidance is conservative. Most investors are focused on Pinterest’s new Amazon.com (AMZN) third party advertising partnership in the U.S. and the potential expansion to new partners and countries, the firm tells investors in a research note. However, New Street believes the Street is overlooking the company’s’ structural leverage on sales expenses as thief party ad revenue grows as a percentage of overall revenue.

Meanwhile, Jefferies upgraded Pinterest to Buy from Hold with a price target of $41, up from $32, as it sees catalysts for revenue growth upside in fiscal 2024. The upgrade of Pinterest is based on increasing conviction in the company’s ability to grow revenue 20%-plus in fiscal 2024, the firm tells investors in a research note. Pinterest is a rare story in consumer internet with tailwinds next year for every key revenue growth driver – users, ad load, engagement and price, contends Jefferies.

4. Boeing upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital upgraded Boeing (BA) to Outperform from Sector Perform with a price target of $275, up from $200. After another year of supply chain disruptions and lowered expectations in 2023, the setup into 2024 is favorable, RBC tells investors in a research note. The firm expects strong demand to sustain for both Boeing’s commercial and defense business, and says that as production and delivery ramps continue to improve, investor confidence in its free cash flow outlook will improve. RBC believes “we are in the early stages of a significant shift in sentiment on BA stock.”

5. Estee Lauder initiated with a Buy at HSBC

HSBC initiated coverage of Estee Lauder (EL) with a Buy rating and $180 price target. The shares have lost two-thirds of their value in 24 months, and now is the time to buy ahead of a rebound, HSBC tells investors in a research note. The firm believes in the underlying potential of the portfolio “if appropriate changes are made.”

Top 5 Sell Calls:

1. Piper downgrades Shopify to Underweight on “untenable valuation”

Piper Sandler downgraded Shopify (SHOP) to Underweight from Neutral with a price target of $56, down from $58. The shares at current levels hold an “untenable valuation,” the firm tells investors in a research note. While secular drivers like e-commerce penetration, market share opportunity and take-rate expansion will continue to benefit Shopify’s growth and profit trajectory, the growth and profit assumptions embedded into the shares are “too aggressive” following the stock’s 50% post-earnings rally, says Piper. The firm says Shopify’s fundamentals are set to moderate in 2024 “as the company clears events unique to 2023.”

2. Foot Locker downgraded to Sell at Citi

Citi downgraded Foot Locker (FL) to Sell from Neutral with an unchanged price target of $18. A weakening macro environment and still elevated inventory levels are driving Foot Locker to be more promotional than planned this fall and holiday, the firm tells investors in a research note. Citi believes the company will sacrifice margin near-term to “get clean” on inventory by year-end. However, with 64% of sales coming from Nike (NKE) product, Foot Locker “is not completely in control of its own destiny,” says the firm.

3. GE HealthCare downgraded to Sell at UBS

UBS downgraded GE HealthCare (GEHC) to Sell from Neutral with a price target of $66, down from $86. Soft orders, tough compares and a lack of prices rises puts UBS estimates below the 2024 consensus, the firm tells investors in a research note. UBS is more cautious on GE HealthCare’s Imaging margin approach and sees margin disappointments ahead.

4. Bilibili downgraded to Underweight at Barclays

Barclays downgraded Bilibili (BILI) to Underweight from Equal Weight with a price target of $10, down from $15. The company reported “inline-ish” Q3 results but a weaker than expected Q4 revenue growth outlook now is compounding the challenges Bilibili has been dealing with to fix its long-standing bloated cost structure, the firm tells investors in a research note. As such, Barclays cut estimates and downgraded the shares.

5. Edwards downgraded to Underperform at Wolfe Research

Wolfe Research downgraded Edwards Lifesciences (EW) to Underperform from Peer Perform with a $57 price target. The firm sees risk of U.S. transcatheter aortic valve replacement disappointment in the next two years as the category matures and competition rises. Wolfe also sees the Street’s mid-term margin model for Edwards Lifesciences as too optimistic. It sees risk that the company’s 2024 guidance next week starts below Street estimates.