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

Biogen upgrade, Meta Platforms downgrade, and Autodesk 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: 

• Piper Sandler upgraded Biogen (BIIB) to Overweight from Neutral with a price target of $346, up from $280. The firm now sees a "confluence of positive catalysts over the next several quarters" for the shares. [Read more]
• Piper Sandler upgraded Enphase Energy (ENPH) to Overweight from Neutral with an unchanged price target of $255. The firm says Q1 U.S residential solar originations and sales were more favorable than feared, suggesting the U.S. is more likely to decelerate than decline during 2023. [Read more]
• JPMorgan upgraded Lumentum (LITE) to Overweight from Neutral with a price target of $60, up from $54. The stock’s current valuation appears to price in "more headwinds than realistic," even though there is further risk of downside to estimates, the firm notes. [Read more]
• JPMorgan upgraded HP Inc. (HPQ) to Overweight from Neutral with a price target of $35, up from $30. The latest data points in relation to PC shipments reinforce the firm’s view of a second half of 2023 recovery. [Read more]
• JPMorgan upgraded Ollie’s Bargain Outlet (OLLI) to Neutral from Underweight with a price target of $66, up from $56. The company is experiencing strong closeout deal flow, an improving competitive backdrop relative to fiscal 2022, and a margin recapture opportunity tied to the supply chain, the firm notes. [Read more]

Top 5 Downgrades:

• New Street downgraded Meta Platforms (META) to Neutral from Buy with an unchanged price target of $220. The firm now sees better opportunities for upside elsewhere in its coverage after Meta’s outperformance relative to the group. [Read more]
• JPMorgan downgraded Teradyne (TER) to Underweight from Neutral with a price target of $81, down from $90. The firm sees increasing risks around elevated expectations of a rebound in the company’s revenue and earnings starting with the back half of 2023 and in 2024. [Read more]
• Oppenheimer downgraded EverQuote (EVER) to Perform from Outperform and removed the firm’s $22 price target on the shares until it can better assess how higher losses at Progressive (PGR) will impact the company’s results. [Read more]
• JPMorgan downgraded Dell Technologies (DELL) to Neutral from Overweight with an unchanged price target of $47. The firm expects Dell to benefit from the recovery in the PC end market, but says the the magnitude of the recovery should be larger in consumer segments rather than the commercial/enterprise segment to which the company is more indexed. [Read more]
• Raymond James downgraded Texas Roadhouse (TXRH) to Market Perform from Outperform, citing valuation. The firm believes further multiple expansion could be constrained by macro uncertainty and continued beef inflation concerns over the next 12-18 months. [Read more]

Top 5 Initiations:

• William Blair initiated coverage of Autodesk (ADSK) with an Outperform rating. Blair says Autodesk’s shift to annual billings adds greater visibility and linearity to the model while having no fundamental impact on the long-term positioning of the business. [Read more]
• UBS initiated coverage of Okta (OKTA) with a Buy rating and $100 price target. The firm sees Okta being well positioned to benefit from continued identity tailwinds, supported by checks across the customer and partner community that highlight strong identity spending intentions. [Read more]
  
• Wolfe Research initiated coverage of Check Point Software (CHKP) with an Outperform rating and $151 price target. The company is a "highly efficient, cash generating machine" with industry leading 40%-plus operating margins and mid-40% free cash flow margins, which will enable the name to outperform this year as the macro environment worsens, the firm says. [Read more]
• BofA initiated coverage of Hilton Grand Vacations (HGV) with a Neutral rating and $50 price target. While the firm still sees room for recovery, pricing is well ahead of pre-COVID levels and it questions the sustainability in the current uncertain macro environment. [Read more]
• BofA initiated coverage of Travel + Leisure (TNL) with an Underperform rating and $42 price target. The firm is concerned by near-term pressure on earnings from price normalization and travel and membership ramping below expectations. [Read more]