Street Wrap: Today’s Top 15 Upgrades, Downgrades, Initiations

WW upgrade, Nasdaq downgrade, and Chewy initiation among today’s top calls on Wall Street

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 Whirlpool (WHR) to Buy from Neutral with a price target of $160, down from $170. The stock’s current valuation offers a "compelling entry point," the analyst tells investors in a research note. [read more]
• Morgan Stanley upgraded AstraZeneca (AZN) to Overweight from Equal Weight with a price target of 13,200 GBp, up from 12,800 GBp. The analyst sees a positive risk/reward for AstraZeneca and Daiichi-Sankyo into the top-line data for Dato-DXd in second-line metastatic non-small cell lung cancer. [read more]
• Piper Sandler upgraded Akamai Technologies (AKAM) to Overweight from Neutral with an unchanged price target of $93. The recent pullback in shares presents an opportunity to "own this contrarian name into this earnings," the analyst tells investors. [read more]
• Goldman Sachs upgraded WW (WW) to Buy from Neutral with a price target of $13, up from $3.80. The company’s subscriber base and earnings power has been shrinking, but a catalyst for a turnaround has emerged with its new obesity drug on-ramp solution, the analyst said. [read more]
• Evercore ISI upgraded Welltower (WELL) to Outperform from In Line with an unchanged price target of $81 heading into Q1 earnings season for the healthcare REIT group. The firm anticipates a "strong" FY23 and FY24 earnings recovery and believes "the company will grow into its multiple." [read more]

Top 5 Downgrades:

• Morgan Stanley downgraded Nasdaq (NDAQ) to Equal Weight from Overweight with a price target of $60, down from $70. The analyst sees risks to the company’s Solutions business growth outlook that comprise over 70% of its revenue Meanwhile, Nasdaq is least exposed to a cyclical uplift to volumes, as its trading revenue comprise less than 30% of sales, the analyst tells investors. [read more]
• Wells Fargo downgraded Antero Resources (AR) to Equal Weight from Overweight with a price target of $25, down from $32. Wells Fargo says Antero’s valuation is more in-line with peers, and it expects below-average free cash flow generation in 2023 due to the company’s largely unhedged production profile, resulting in valuation that is less compelling. [read more]
• Truist downgraded EQT Corporation (EQT) to Hold from Buy with a price target of $28, down from $41. The company will continue to adjust to the ongoing volatility in gas tape through minimal D&C along with an active choke program, potentially causing volumes to come in slightly lower than current consensus, the analyst tells investors. [read more]
• Rosenblatt downgraded Manhattan Associates (MANH) to Neutral from Buy with a $150 price target ahead of the company’s Q1 results. The analyst expects an in-line quarter as the broadening adoption of Manhattan’s advanced cloud-based Active product offering and its solid backlog offset macro headwinds. [read more]
• Wells Fargo downgraded Southwestern Energy (SWN) to Underweight from Equal Weight with a price target of $5, down from $6. The firm sees continued headwinds due to the lack of capital returns and weak free cash flow generation in a weak gas price environment, though it thinks Southwestern is well-positioned in global LNG trade in 2025+. [read more]

Top 5 Initiations:

• JMP Securities initiated coverage of Chewy (CHWY) with an Outperform rating and $50 price target. The company’s "dominant position" within pet-related retail and services positions it well to capture a "highly impassioned audience that is increasingly humanizing their pets," the analyst tells investors in a research note. [read more]
• JPMorgan initiated coverage of Upstart (UPST) with an Underweight rating and $11 price target. The company benefited from pandemic stimulus, which drove consumer defaults to record lows, the analyst said. [read more]
• Wolfe Research initiated coverage of Array Technologies (ARRY) with an Outperform rating and $25 price target. The analyst sees Array as an alternative way to gain exposure to largescale solar at a "reasonable valuation" with the potential for upside from Inflation Reduction Act tax credits. [read more]
• Baird initiated coverage of Shopify  (SHOP) with an Outperform rating and $55 price target. The analyst launched coverage of companies across internet and digital services, saying each category has unique positives/risks in the current environment. [read more]
• Northland initiated coverage of Semtech (SMTC) with an Outperform rating and $32 price target. Shares have sold off, notes the analyst, who admits things "will take time to sort out," but thinks there are "avenues for value creation" by combining the LoRa and Sierra Wireless product offerings. [read more]