Qualcomm downgraded, Cigna 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:

• Goldman Sachs upgraded Target (TGT) to Conviction Buy from Buy with a $176 price target as part of its monthly “Directors’ Cut” revisions. The firm sees a compelling entry point for a company that will get a boost from a return to discretionary spending from a “buoyant” U.S. consumer in a soft landing economy.
• Deutsche Bank upgraded Cigna (CI) to Buy from Hold with a price target of $370, up from $355. The company announced the agreement to sell its Medicare Advantage, Supplemental Benefits, Part D, and CareAllies Business to HCSC for a total transaction value of $3.7B, in what can be a “value unlocking-transaction,” the firm tells investors in a research note.
• JPMorgan upgraded AT&T (T) to Overweight from Neutral with a price target of $21, up from $18. The company has been able to show consistent execution in its wireless and broadband businesses and faces solid long-term growth for both segments, especially in broadband with its ongoing fiber build along with incremental opportunities in and out of existing markets, the firm says.
• Daiwa upgraded Rockwell Automation (ROK) to Buy from Outperform with a price target of $310, down from $338. The firm says that the company’s valuations could remain under pressure near-term but the recent stock decline presents an attractive opportunity.
• Mizuho upgraded Boston Scientific (BSX) to Buy from Neutral with a price target of $80, up from $65. The firm now sees Boston Scientific as one of the more durable growth stories across the large-cap medical technology space, supported by structural market factors “along with one of the more attractive portfolios of high-growth assets.”

Top 5 Downgrades:

• Citi downgraded Qualcomm (QCOM) to Neutral from Buy with an unchanged price target of $160. The company reported good results but guided below consensus driven by share loss at Samsung, the firm says.
• Morgan Stanley downgraded ZoomInfo (ZI) to Equal Weight from Overweight with a price target of $20, down from $24. The firm says a slower recovery in sales job postings and increasing competition lowers the company’s outlook on future growth.
• UBS analyst David Vogt downgraded Extreme Networks (EXTR) to Neutral from Buy with a price target of $14, down from $22. The firm says networking industry spend across campus and WLAN will decline sharper than expected for the balance of 2024.
• JPMorgan downgraded Lennox (LII) to Underweight from Neutral with a price target of $330, down from $370, post the Q4 report. The firm commends the company for strong execution on commercial margins, but downgraded the shares on “reinforced caution” on the residential HVAC end market cycle outlook.
• UBS downgraded StoneCo (STNE) to Neutral from Buy with a price target of $21, up from $18, following the 60% rally over the last four months. While UBS continues to see the company benefiting from lower policy rates and well suited to continue gaining share, current valuation already reflects most of this expectation and risk-reward is balanced for now.

Top 5 Initiations:

• Compass Point initiated coverage of Beyond (BYON), formerly Overstock.com (OSTK), with a Buy rating and $45 price target. With Marcus Lemonis now leading the activist-driven turnaround campaign, the firm likes the set-up, low expectations and improved visibility into share gains.
• Raymond James initiated coverage of Guidewire Software (GWRE) with an Outperform rating and $125 price target. The shares offer a compelling long-term compounding opportunity, the firm tells investors in a research note.
• Goldman Sachs initiated coverage of Arvinas (ARVN) with a Buy rating and $70 price target. The company has a “differentiated” protein degrader platform that could expand several major markets, the firm says.
• Goldman Sachs initiated coverage of Dynavax (DVAX) with a Neutral rating and $20 price target. The firm thinks there is limited potential upside for the shares from current levels given the company’s mostly early stage pipeline and scarcity of near-term catalysts.
• Wells Fargo initiated coverage of Regency Centers (REG) with an Overweight rating and $70 price target. With investor sentiment improving for strips, Regency’s stock underperformance of late offers a good entry point, the firm argues.