Gracell downgrade, Fusion upgrade: 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 Calls:

• Raymond James upgraded Fusion Pharmaceuticals (FUSN) to Strong Buy from Outperform with a price target of $15, up from $12, arguing that a recent series of high-profile acquisitions in the radiopharma space – including Bristol Myers’ (BMY) $4.1B acquisition of RayzeBio (RYZB) and Eli Lilly’s (LLY) $1.4B acquisition of Point Biopharma (PNT) – highlight the value of radiopharma platforms.
• Capital One upgraded Outlook Therapeutics (OTLK) to Overweight from Equalweight with a $5 price target following the company’s 2023 financial and corporate update. The FDA is only requiring a short additional Phase 3 study for Lytenava in wet AMD, which is “great feedback,” according to the firm.
• Piper Sandler downgraded Gracell Biotechnologies (GRCL) to Neutral from Overweight with a price target of $10, up from $9, after the company entered into a definitive agreement to be acquired by AstraZeneca (AZN) for $10.00 per ADS in cash at closing, plus a non-tradable contingent value right for up to $1.50 per ADS representing a total transaction value of up to $1.2B.
• Ladenburg Thalmann initiated coverage of PMV Pharmaceuticals (PMVP) with a Buy rating and $7 price target. The firm says PMV trades at a “deep discount” to its intrinsic value and its cash on the balance sheet.
• Within the firm’s coverage rankings, Wedbush is lowering Google (GOOGL) to number 2 within Digital Advertising and raising Meta Platforms (META) to number 1. 2024 presents a relatively more challenging year for Google, in the firm’s view, given the recent deceleration of Google Cloud, uncertainty related to its AI initiatives, and the unknown impact that generative AI will have on Search. Wedbush also raised the firm’s price target on Meta Platforms to $420 from $350 to reflect the latest views heading into 2024, while keeping an Outperform rating on the shares.