Cisco upgraded, Joby 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:

• JPMorgan upgraded Cisco Systems (CSCO) to Overweight from Neutral with a price target of $62, up from $55. The firm sees limited further downside in the shares due to enterprise spending and an “inexpensive” valuation. (Read more)
• BofA upgraded Bluebird Bio (BLUE) to Buy from Neutral with a price target of $10, up from $6. The firm argues that Bluebird’s sickle cell disease, or SCD, gene therapy product is “under-appreciated” and adds that it expects lovo-cel to “gain timely approval” by its December PDUFA deadline date. (Read more)
• UBS upgraded Cheniere Energy Partners (CQP) to Buy from Neutral with a $57 price target. The firm sees sentiment on Cheniere Energy Partners being at an inflection point, noting that global LNG sentiment is improving, and investors are beginning to consider and value future growth opportunities at SPL. (Read more)
• Baird upgraded Forward Air (FWRD) to Outperform from Neutral with a price target of $130, up from $106. Growing risk of a Yellow (YELL) failure and the related industry capacity shock should help counter cyclical headwinds for the transports and bolster pricing/volume until freight markets fully recover, the firm says. (Read more)
• Benchmark upgraded Helmerich & Payne (HP), Patterson-UTI (PTEN), ProPetro Holding (PUMP), Nabors Industries (NBR), and Precision Drilling (PDS), all to Buy from Hold, as the firm sees a tactical trading opportunity in North American Land drilling and U.S. frac names. (Read more)

Top 5 Downgrades:

• Argus downgraded AT&T (T) to Hold from Buy. The firm sees “a new material risk” to AT&T from the issue from the recently reported investigation into the possible environmental effects of the lead-clad copper cables used by the company. (Read more)
• Gordon Haskett downgraded Opendoor Technologies (OPEN) to Underperform from Hold with a price target of $3, up from $1.50. The stock is currently trading at a valuation premium to peers despite the company “materially underperforming on the margin front,” the firm says. (Read more)
• Gordon Haskett downgraded Redfin (RDFN) to Underperform from Hold with a price target of $10, up from $9. Redfin is “trading well above peers” on an enterprise value to EBITDA basis despite operating at margin levels well below, the firm says. (Read more)
• TD Cowen downgraded QuantumScape (QS) to Market Perform from Outperform with a price target of $8, down from $14, after resuming coverage following a period of restriction. The firm says that while the data is promising at the mAh and single-digit Ah scale, the company’s timeline to commercialization keeps it sidelined. (Read more)
• JPMorgan downgraded Joby Aviation (JOBY) to Underweight from Neutral with a price target of $6, up from $5. The stock’s strong performance in recent weeks has been reflective of a “risk-on environment” by retail investors as well as short covering “with the stock performance decoupling from fundamentals,” the firm says. (Read more) 

Top 5 Initiations:

• Baird initiated coverage of Intuitive Surgical (ISRG) with an Outperform rating and $377 price target. As the “pioneer” in soft tissue robotic assisted surgery, Intuitive should continue to deliver a mid-teens compound annual growth rates in revenue and EPS, the firm says. (Read more)
• Guggenheim initiated coverage of Texas Roadhouse (TXRH) with a Buy rating and $130 price target. The multiple the firm is applying to its 2024 EPS estimate represents “a healthy premium to other full-service restaurant peers,” but Texas Roadhouse is growing units 4%-5% annually, which is above Darden’s (DRI) 2%-3% and roughly 0%-1% for the entire full-service category. (Read more)
• Baird initiated coverage of Medtronic (MDT) with a Neutral rating and $90 price target. The firm thinks a 4-4.5% top-line growth outlook and ongoing headwinds impacting adjusted EPS growth limits the upside. (Read more)
• Baird initiated coverage of Edwards Lifesciences (EW) with an Outperform rating and $107 price target. Edwards should remain a leader as the TAVR market expands, the firm says. (Read more)
• Raymond James initiated coverage of Thermo Fisher (TMO) with an Outperform rating and $595 price target. The company is “broadly diversified” and should be a “blue chip core holding,” the firm says. (Read more)