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

Trio of bank upgrades, Atlassian downgrade and PLBY Group 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: 

• JPMorgan upgraded Western Alliance (WAL) to Overweight from Neutral with a $46 price target. The Q1 results from the regional banks were not as bad as feared in terms of potential deposit outflows, the analyst tells investors. However, the group has seen intense shorting and selling pressure, says the firm. [read more] The firm, which now sees "too many on one side of the boat" and upgraded Zions Bancorp (ZION) and Comerica (CMA) to Overweight as well. [read more] 
• Deutsche Bank upgraded SolarEdge (SEDG) to Buy from Hold with a price target of $375, up from $305. The firm had previously voiced concerns about cost control, better localization of the supply chain and margin pressures, but it is "increasingly constructive" on SolarEdge as those concerns have faded, the analyst tells investors. [read more]
• JPMorgan upgraded Kellogg (K) to Neutral from Underweight with a price target of $72, up from $68. The firm says that since its previous downgrade to Underweight, many of Kellogg’s risks have faded, especially on pensions and interest. [read more]
• BMO Capital upgraded Alnylam Pharmaceuticals (ALNY) to Outperform from Market Perform with a price target of $250, up from $200. Alnylam is the leader in siRNA therapies, with four commercial therapies and total expected revenue of $1.4B in 2023, reflecting 35% year-over-year growth, the analyst tells investors. [read more]
• Piper Sandler upgraded Becton Dickinson (BDX) to Overweight from Neutral with a price target of $290, up from $260. Based on the fiscal Q2 results and and commentary from the earnings call, the analyst believes Becton’s fundamentals "increasingly look to have the wind at their back over the next 12 months." [read more]

Top 5 Downgrades: 

• Goldman Sachs downgraded Atlassian (TEAM) to Neutral from Buy with a price target of $165, down from $240. While Atlassian’s fiscal Q3 revenue beat consensus and operating margins came in 6.5 points higher, this was offset by data center driving the revenue outperformance rather than cloud and the analyst sees the pace of the company’s cloud transition likely taking longer than expected. [read more]
• BofA downgraded Tandem Diabetes (TNDM) to Underperform from Neutral with a price target of $33, down from $45. The company’s estimates look more at risk post the Q1 results, the analyst tells investors in a research note. The stock is "already cheap" but Tandem’s revenue and EBITDA estimates look at risk with Insulet (PODD) taking 70% of new pumper share in Q1, says the firm. [read more]
• Loop Capital downgraded Ingevity (NGVT) to Hold from Buy with a price target of $64, down from $92. The analyst cites the company’s lower guidance and the firm’s greater consideration regarding the ongoing structural changes and challenges associated with the pine chemicals industry in which Ingevity participates. [read more]
• Lake Street downgraded Clearfield (CLFD) to Hold from Buy with a price target of $34, down from $63, following the company’s "big" FY23 guidance cut. The firm had expected FY23 guidance to be lowered, but "admittedly had not expected this severe of a cut," the analyst tells investors. [read more]
• BofA downgraded Allete (ALE) to Neutral from Buy with a price target of $63, down from $66. Following the stock’s outperformance in recent months, there will be renewed focus on the company’s regulatory risk with a coming rate case filing in Minnesota, the analyst tells investors. [read more]

Top 5 Initiations: 

• Jefferies initiated coverage of PLBY Group (PLBY) with a Buy rating and $2.50 price target. The firm’s thesis is predicated on the valuation of the company’s core assets and the "optionality" of its "unique flywheel," the analyst tells investors in a research note. As PLBY comes out of a turnaround, proof of profitability and the early success of Centerfold "offers significant upside," contends the firm. [read more]
• Berenberg analyst initiated coverage of Mobileye (MBLY) with a Buy rating and $44 price target. The automotive industry has entered a period of "transformative innovation," and the firm views Mobileye as the pioneer, incumbent and leader in driving automation systems for passenger light vehicles. [read more]
• Capital One initiated coverage of Olema Oncology (OLMA) with an Overweight rating and $16 price target, which represents 200% upside potential. The company’s OP-1250, an oral complete estrogen receptor degrader, is in development for the treatment of ER+/HER2-breast cancer, which accounts for 60%-70% of all breast cancer cases, the analyst tells investors. [read more]
• UBS initiated coverage of Guardant Health (GH) with a Buy rating and $40 price target. The analyst believes the focus on the company’s early cancer detection assay, Shield, has overshadowed its leading position in liquid biopsy therapy selection oncology, "where there is still a multiyear runway for continued penetration of this oncology market." [read more]
• Morgan Stanley assumed coverage of BigCommerce (BIGC) with an Equal Weight rating and $10 price target. While the company is "making progress" on its focus up-market and driving toward profitability, BigCommerce must start closing deals in the enterprise, where sales cycles are elongating and a ramp in net new enterprise ARR "looks challenging" in this macro environment, the analyst tells investors. [read more]