Qualcomm downgraded, First Solar 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:

• Morgan Stanley upgraded Bluebird Bio (BLUE) to Equal Weight from Underweight with a price target of $7, up from $3. The analyst thinks lovo-cel is likely to be approved for sickle cell disease by the December 20 FDA action date.
• Deutsche Bank upgraded Equifax (EFX) to Buy from Hold with a price target of $267, up from $218. The firm sees asymmetric risk/reward in Equifax “if and when” mortgage rates decline to 5.5% from 7% and a recession, whether mild or severe, should hasten this decline.
• Morgan Stanley upgraded First Solar (FSLR) to Overweight from Equal Weight with a price target of $237, up from $214. After the 20% selloff in the past three months, First Solar shares have an attractive risk/reward profile, the analyst tells investors in a research note.
• Jefferies upgraded ALX Oncology (ALXO) to Buy from Hold with a price target of $18, up from $8. The company has three major randomized controlled Phase II studies in 2024 which could work and stock is “very cheap” at a $100M enterprise value, the analyst says.
• Wells Fargo upgraded SLM (SLM) to Overweight from Equal Weight with a price target of $20, up from $14. The analyst believes SLM shares are poised to garner more attention and a higher valuation from investors given the company’s “enhanced competitive positioning” with Discover Financial’s (DFS) exit, clarity on future loan sales and better credit.

Top 5 Downgrades:

• Morgan Stanley downgraded Qualcomm (QCOM) to Equal Weight from Overweight with a price target of $132, up from $119, in conjunction with moving the firm’s industry view on Semiconductors from In-Line to Attractive. The firm says its fundamental view is turning more positive on the device side as the inventory correction runs its course and it is shifting its smartphone exposure “from defense to offense.”
• TD Cowen downgraded HashiCorp (HCP) to Market Perform from Outperform with a price target of $23, down from $28, following a cRPO and billings miss and management still modeling a sharp second half deceleration. Macro headwinds are showing no signs of fading and the firm thinks growth visibility will remain highly constrained for at least a few quarters.
• Deutsche Bank downgraded FactSet (FDS) to Hold from Buy with a price target of $480, up from $471. The firm has lowered its FY24 revenue estimates to the low-end of the range, noting management’s recent commentary with respect to the macro environment.
• Jefferies downgraded Beam Therapeutics (BEAM) to Hold from Buy with a price target of $30, down from $75. The shares have rallied from $18 to $28 but 2024 is mostly a year of execution for Beam to show it can enroll the lead Phase I sickle cell program and disclose its first-in-human data on time in late 2024 in multiple patients, the analyst tells investors in a research note.
• Citi downgraded Deckers Outdoor (DECK) to Neutral from Buy with a price target of $710, up from $665. The analyst increased 2024 estimates to reflect strong Ugg momentum, but believes the market “now has high expectations that are getting increasingly difficult to beat.

Top 5 Initiations:

• HSBC initiated coverage of Alcoa (AA) with a Hold rating and $29 price target. While continuous improvement in ESG/CO2 emissions should create future value, the stock’s current valuation looks fair, the analyst tells investors in a research note.
• DA Davidson initiated coverage of Mondelez (MDLZ) with a Buy rating and $83 price target. The company’s advantaged global market positioning, increasing momentum, and optionality are not yet fully appreciated in consensus estimates or the stock’s valuation, the analyst says.
• Wells Fargo initiated coverage of Alnylam (ALNY) with an Equal Weight rating and $171 price target. The firm contends that the risk/reward heading into into HELIOS-B Phase 3 study of vutrisiran “looks balanced.”
• B. Riley initiated coverage of Etsy (ETSY) with a Buy rating and $100 price target. The analyst views Etsy’s “sizable and growing” customer base, large selection of differentiated goods, and platform investments positively for growth and profitability over the medium and longer term.
• Goldman Sachs initiated coverage of Gaming and Leisure Properties (GLPI) with a Neutral rating and $51 price target. The analyst believes Gaming and Leisure’s earnings growth drivers are “well known and relatively limited.”