Karuna downgraded, Arm target raised: 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:

• Leerink downgraded Karuna Therapeutics (KRTX) to Market Perform from Outperform with a price target of $330, up from $270, after Bristol Myers (BMY) agreed to acquire Karuna for $330 per share. Wells Fargo and H.C. Wainwright also downgraded Karuna to Neutral-equivalent ratings. Related to the news, H.C. Wainwright said that the recent buyouts of Karuna Therapeutics and Cerevel Therapeutics (CERE) “serve to emphasize the clear opportunity for investors” in Reviva Pharmaceuticals (RVPH) shares, particularly since Reviva trades at a market cap of $130M.
• BofA downgraded AlloVir (ALVR) to Underperform from Buy with a price target of $1, down from $17, after AlloVir announced it was discontinuing its three ongoing phase 3 studies of posoleucel with none deemed likely to succeed. The update is “a profound setback for the allogeneic T-cell developer” that raises “justifiable questions about its future,” the firm says.
• Northland downgraded Daseke (DSKE) to Market Perform from Outperform with an $8.30 price target after the company agreed to be acquired by TFI International (TFII) in an all-cash transaction that values Daseke at an enterprise value of approximately $1.1B, or $8.30 per share in cash.
• Keeping a Buy rating on the shares, Rosenblatt raised its price target on Arm (ARM) to $110 from $85 as generative artificial intelligence class design and licensing momentum “has shifted aggressively.” The new price target is a high on the Street. 
• Bullish on the name, BofA maintained a Buy rating on Nio (NIO) with an $11 price target following the 2023 Nio day. The company launched its flagship battery electric vehicle sedan ET9 and the next generation vehicle platform and technology as well, with the firm noting that ET9 “will be equipped with all the industry-leading vehicle technology,” including a new autonomous driving chip system.