Etsy downgraded, Carvana upgraded: 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:

• Wells Fargo upgraded Carvana (CVNA) to Overweight from Equal Weight with a price target of $175, up from $77, following the Q2 report and a transfer of analyst coverage. The company reported a “robust” Q2, but the upgrade call is long-term in nature, reflecting Carvana’s ongoing share gains, a structurally improved cost base, and easing balance sheet concerns, the firm tells investors in a research note.
• Loop Capital upgraded Reddit (RDDT) to Buy from Hold with an unchanged price target of $75. With the price target now offering 23% upside potential, the firm upgrades the shares.
• BTIG upgraded Datadog (DDOG) to Buy from Neutral with a $143 price target after having spoken with 10 partners, five of which skewed to large enterprise, and concluding that cloud cost optimization initiatives related to weakness in the broader macro environment are mostly complete. The firm sees tailwinds for the broader observability market on the horizon and thinks Datadog is best positioned to win business from Splunk as customers are in the early stages of looking for alternatives following its acquisition by Cisco (CSCO).
• Raymond James upgraded Wingstop (WING) to Outperform from Market Perform with a $42 price target. The company’s “unprecedented comp momentum” and raised long-term average unit volume and unit growth targets “more than outweigh” Raymond James’ longstanding valuation concerns, the firm tells investors in a research note.
• BofA double upgraded Day One Biopharmaceuticals (DAWN) to Buy from Underperform with a price target of $24, up from $11. The firm sees a favorable share setup ahead of the pivotal FIREFLY-2 readout.

Top 5 Downgrades:

• Oppenheimer downgraded Etsy (ETSY) to Perform from Outperform without a price target. The firm cites a lack of catalysts and the 16% increase in the shares since July 8 for the downgrade.
• Summit Insights downgraded Western Digital (WDC) to Hold from Buy without a price target. Summit thinks the storage and flash industry is in the “7th to 8th inning of the recovery cycle” and believes further improvements to Western Digital’s profitability are now limited.
• Truist downgraded Public Storage (PSA) to Hold from Buy with an unchanged price target of $306. The firm views the shares as fairly valued relative to the lower growth profile that the firm is now assuming given reduced same-store NOI growth expectations in 2024/2025 and FFO projections that are now more in line with consensus estimates.
• Stifel downgraded SiteOne Landscape (SITE) to Hold from Buy with an unchanged price target of $150. The firm views SiteOne’s earnings update as disappointing with fiscal 2024 guidance reduced 11% at the midpoint driven by a weaker end market outlook and prolonged deflation.
• Wolfe Research downgraded Bill (BILL) to Peer Perform from Outperform without a price target. While the shares have already underperformed year-to-date, headwinds around spend trends, customer additions, and take rate warrant a move to the sidelines, the firm tells investors in a research note.

Top 5 Initiations:

• Truist initiated coverage of Medpace (MEDP) with a Hold rating and $415 price target. Given its high exposure to the fast-growing emerging biopharma market, Medpace has posted outsized growth relative to its peers in recent years, but such an exposure also comes with higher volatility, which was evident in the company’s recent cancellation trends, says the firm.
• Baird initiated coverage of OneStream (OS) with an Outperform rating and $32 price target. The firm says the company has a strong operating model and improving financial profile.
• Janney Montgomery Scott initiated coverage of Greystone Housing Impact (GHI) with a Buy rating and $17 fair value estimate. The role of public private partnerships is critical in solving the affordability challenge in the U.S. housing market, and Greystone is “uniquely positioned” to be a provider of debt capital in meeting that need, the firm says.
• Oppenheimer keeps an Outperform rating and $60 price target on Biomea Fusion (BMEA) after a different analyst at the firm assumed coverage of the name. The firm believes the stock trades at a “considerable discount to fair value” despite BMF-219’s clinical hold.
• Baird keeps a Neutral rating with a price target of $160, up from $110, on Carvana (CVNA) after a different analyst at the firm assumed coverage of the name. The firm notes stock has been on “a remarkable run,” fueled by strong execution and surging momentum, and those trends continued during the second quarter.