Intel, FedEx 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:

• Deutsche Bank upgraded Northrop Grumman (NOC) to Buy from Hold with a price target of $700, up from $575, as part of a Q3 earnings preview for the defense group. The firm sees strong free cash flow for Northrop after 2028 as the B-21 bomber program becomes cash profitable and the Sentinel weapons system gets closer to the production stage.
• Needham upgraded Penumbra (PEN) to Buy from Hold with a $326 price target. The firm expects the company’s growth in 2026 to meaningfully accelerate due to the upcoming Thunderbolt and Ruby XL launches, STORM-PE trial results, and easing of headwinds in China.
• JPMorgan upgraded Ionis Pharmaceuticals (IONS) to Overweight from Neutral with a price target of $80, up from $49. The company’s multiple launches put it on a path to breakeven, the firm tells investors in a research note.
• Wolfe Research upgraded Otis Worldwide (OTIS) to Outperform from Peer Perform with a $109 price target as part of a Q3 earnings preview. The downside risk to the company’s Q4 outlook is “widely anticipated” and Otis has a number of “offsetting positive developments that could drive incrementally more bullish positioning,” the firm says.
• Seaport Research upgraded Constellation Energy (CEG) to Buy from Neutral with a $407 price target. The firm expects more datacenter power deal announcements, as well as additional M&A and positive earnings revisions for thermal IPPs before the end of the year.

Top 5 Downgrades:

• HSBC downgraded Intel (INTC) to Reduce from Hold with a price target of $24, up from $21.25. HSBC believes further deal announcements could drive the stock higher in the short term, but says Intel’s own fab execution remains key to any sustainable turnaround, and as such, it believes the re-rating of Intel shares is overdone.
• JPMorgan downgraded FedEx (FDX) to Neutral from Overweight with a price target of $274, down from $284. The firm says its recent channel checks in the less-than-truckload industry warrant a lower multiple in its sum-of-the-parts analysis for FedEx’s freight segment.
• Oppenheimer downgraded Edwards Lifesciences (EW) to Perform from Outperform with no price target. Third-party vendor data is suggesting TAVR upside in Q3, but the firm’s downgrade is “more structural in nature” than about expected near-term performance, it says.
• BofA downgraded Freshpet (FRPT) to Neutral from Buy with a price target of $60, down from $81. Pet food category growth, and dog food in particular, has seen growth deteriorate over the last six months as pet adoptions have slowed and consumers have pulled back on spending, the firm tells investors.
• Oppenheimer downgraded Incyte (INCY) to Perform from Outperform with a price target of $82, up from $81. The firm cites the high expectations for Opzelura, povorcitinib, mCALR, CDK2i, and new management for the downgrade.

Top 5 Initiations:

• Barclays initiated coverage of Teledyne (TDY) with an Equal Weight rating and $606 price target. The firm likes Teledyne’s diversification, with about 53% of FY24 sales form defensive or long-cycle markets and 47% from short-cycle sectors.
• Craig-Hallum initiated coverage of Corsair Gaming (CRSR) with a Buy rating and $12 price target. The firm believes Corsair is in a strong position given solid near-term catalysts for a stock that remains undervalued vs gaming and consumer hardware comparable sales.
• Truist initiated coverage of Commvault (CVLT) with a Buy rating and $230 price target. The company is well positioned to benefit from the growing importance of data security amid rising ransomware attacks, the firm tells investors in a research note.
• Barclays initiated coverage of Trimble (TRMB) with an Overweight rating and $100 price target. The investment thesis on the stock is not fully appreciated by investors as Trimble continues to transform its business model from a hardware-centric positioning technology company into a software solutions provider, the firm tells investors in a research note.
• Barclays initiated coverage of TE Connectivity (TEL) with an Overweight rating and $249 price target. The company is benefiting from multiple tailwinds that are increasing connector content across diverse end markets, the firm tells investors in a research note.