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

Nvidia upgrade, First Solar downgrade, and Datadog 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:

• HSBC double upgraded Nvidia (NVDA) to Buy from Reduce with a price target of $355, up from $175. The company’s artificial intelligence opportunity more than offsets previous concerns over a data center slowdown and rising inventory levels, the firm says. [Read more]
• Atlantic Equities upgraded Comcast (CMCSA) to Overweight from Neutral with a price target of $44, up from $36. The firm believes broadband expectations are now "de-risked" and has also modeled an acquisition of Warner Bros. Discovery (WBD) and subsequent spin of the enlarged content business, and believe this could add $8 per share to Comcast. [Read more]
• KeyBanc upgraded Sunrun (RUN) to Overweight from Sector Weight with a $27 price target, citing an attractive valuation, "encouraging" data from California, and the firm’s view that residential solar companies have sufficient pricing power to execute in the higher interest rate environment. [Read more]
• Citi upgraded Chubb (CB) to Buy from Neutral with an unchanged price target of $229. Based on an analysis of reserves, Chubb’s North America charge will prove to be an outlier, creating a buying opportunity as the company will show incremental strength in reserves, the firm says. [Read more]
• Wells Fargo upgraded Danaher (DHR) to Overweight from Equal Weight with a price target of $285, up from $275, as the firm gets selectively constructive on names with overshot pessimism. Danaher overblown valuation and pessimism get Wells more constructive here. [Read more]

Top 5 Downgrades:

• KeyBanc downgraded First Solar (FSLR) to Sector Weight from Overweight without a price target, citing valuation following the stock’s recent outperformance. [Read more]
• JPMorgan downgraded Global Payments (GPN) to Neutral from Overweight with a price target of $124, down from $170, following a period of restriction. The shares "appear cheap on many measures," but patience is required for management to execute and lift certain weights on the stock, the firm says. [Read more]
• KeyBanc downgraded Plug Power (PLUG) to Sector Weight from Overweight without a price target. The firm says the company faces a "series of headwinds" in the near-term. [Read more]
• Morgan Stanley downgraded Helmerich & Payne (HP) to Underweight from Equal Weight with a price target of $45, down from $60. The firm is cautious into the company’s fiscal Q2, saying it sees higher free cash flow an earnings downside risk relative to peers. [Read more]
• Wells Fargo downgraded Marathon Petroleum (MPC) to Equal Weight from Overweight with a price target of $135, down from $153, as it raises "the caution flag" on the refining sector. [Read more]

Top 5 Initiations:

• Piper Sandler initiated coverage of Datadog (DDOG) with a Neutral rating and $72 price target. The firm believes longer-term consensus expectations that call for a multi-year acceleration past 2023 have diverged from infrastructure as a service expectations, and the level of upside to guidance in 2023 "may be less than many are looking for." [Read more]
• Citi initiated coverage of Rocket Lab (RKLB) with a Neutral rating and $4.55 price target. The company’s business plan is not likely fully funded given development of new products, making execution milestones and bookings the key investor focus items, the firm says. [Read more]
• Citi initiated coverage of Planet Labs (PL) with a Buy rating and $6 price target. The company is a provider of geospatial data and analytics, largely focused on government markets, that should grow 29% through 2025 and begin generating cash in that year, "suggesting a funded business plan," the firm says. [Read more]
• Citi reinstated coverage of OMA (OMAB) with a Sell rating and $76 price target. The company’s traffic growth looks positive, but inconsistent versus peers, and positioning in the shares "appears crowded," the firm notes. [Read more]
• Roth MKM initiated coverage of ProSomnus (OSA) with a Buy rating and $9 price target. The ProSomnus EVO appliance for the treatment of sleep apnea and snoring offers "significant" revenue potential that could drive value to shareholders, the firm says. [Read more]