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

Elevance Health upgrade, Electronic Arts downgrade, and Cintas 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: 

• Morgan Stanley upgraded Elevance Health (ELV) to Overweight from Equal Weight with a price target of $571, up from $500. The firm sees "strong potential" for long-term earnings growth upside from Elevance fully scaling BioPlus and capturing the Humira biosimilar "tailwind." [Read more]
• Cantor Fitzgerald upgraded 2U (TWOU) to Overweight from Neutral with a price target of $7.40, down from $9.50. The company reported a "solid" Q1 but the biggest driver of the shares is the regulatory overhang stemming from potential policy changes that the Department of Education is considering, the firm says. [Read more]
• Truist upgraded Albany International (AIN) to Buy from Hold with a price target of $105, up from $90. The stock’s year-to-date underperformance and discounted valuation more than adequately reflect potential macro risks that may surface in its cyclically sensitive Machine Clothing segment, the firm says. [Read more]
• TD Securities upgraded FirstService (FSV) to Buy from Hold with a price target of $170, up from $150, following a Q1 report that the firm calls a "strong start to 2023." [Read more]
• Citi upgraded Silgan Holdings (SLGN) to Buy from Neutral with a $56 price target. The shares sold off 9% despite in-line Q1 results and a reiterated fiscal year view, the firm notes. [Read more]

Top 5 Downgrades:

• BMO Capital downgraded Electronic Arts (EA) to Market Perform from Outperform with a price target of $125, down from $150. The firm reduced the stock’s valuation multiple to account for a reduction in implied "takeout premium" owing to the U.K. Competition and Markets Authority’s decision to block the Microsoft (MSFT)/Activision Blizzard (ATVI) deal. [Read more]
• BMO Capital downgraded Progressive (PGR) to Market Perform from Outperform with a price target of $150, down from $165. The firm estimates the company’s near-term earnings estimates will need to be further revised downwards with auto inflation "stubbornly persisting" at double-digit rates. [Read more]
• Oppenheimer downgraded Wolfspeed (WOLF) to Perform from Outperform with no price target after the company announced that Mohawk Valley shipped its first product in fiscal Q3, but is seeing utilization gated by 200mm SiC supply. [Read more]
• William Blair downgraded Aspen Technology (AZPN) to Market Perform from Outperform without a price target. Although the company’s fiscal Q3 results were decent given the macro environment, there are "several moving pieces" that could hold the stock back over the next several quarters, the firm says. [Read more]
• BofA double downgraded ASGN (ASGN) to Underperform from Buy with a price target of $66, down from $109. The firm had previously expected ASGN to outperform the rest of the staffing sector, but client demand for its staffing services has proved to be more discretionary than anticipated. [Read more]

Top 5 Initiations:

• Citi initiated coverage of Cintas (CTAS) with a Buy rating and $540 price target. Citi’s new indices of employment and pricing highlight Cintas’ "significant competitive advantage." [Read more]
• Cantor Fitzgerald initiated coverage of Polestar Automotive (PSNY) with an Overweight rating and $7 price target. The firm believes Polestar benefits from the rapid industry demand for EVs. [Read more]
• RBC Capital initiated coverage of Model N (MODN) with a Sector Perform rating and $35 price target. The firm likes Model N’s market leadership position, successful cloud transition, and blue chip customer base, but views the shares as fully valued at current levels. [Read more]
• Maxim initiated coverage of Emerald Holding (EEX) with a Buy rating and $12 price target. A rebound in live events, significant free cash flow generation, innovation, monetizing data, and a multi-billion-dollar total addressable market supports the firm’s positive outlook on the stock. [Read more]
• Deutsche Bank initiated coverage of Ocado Group (OCDGF) with a Hold rating and 550 GBp price target. Once a pure online grocery player, Ocado has evolved into a prime technology provider to some of the leading grocers worldwide, the firm says. [Read more]