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

Snap upgrade, Goodyear Tire downgrade, and MSG Entertainment 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: 

• Arete upgraded Snap (SNAP) to Buy from Neutral with an unchanged price target of $12. At the recent NewFronts, Snap released a suite of new advertising products, including Spotlight Ads that it will roll out globally via automatic placements, further diversifying its ad mix away from app installs and brand budgets and giving it a suite of new features to monetize. [Read more]
• Phillip Securities upgraded Airbnb (ABNB) to Buy from Accumulate with a $143 price target, down from $149, following the Q1 results. The firm cites the recent pullback in shares for the upgrade. [Read more]
• Barclays upgraded Wynn Resorts (WYNN) to Overweight from Equal Weight with a price target of $135, up from $120. Macau fundamentals "have moved well ahead of shares," while Las Vegas is likely more resilient than appreciated, the firm says. [Read more]
• BofA upgraded AppLovin (APP) to Buy from Neutral with a price target of $27, up from $21. With its Q1 report, AppLovin reported that revenue per install rose 48% year-over-year and the pricing surge in Q1 suggests that its new machine learning engine, Axon 2.0, will accelerate revenue growth in 2023, the firm tells investors. [Read more]
• Guggenheim upgraded Visteon (VC) to Buy from Neutral with a $161 price target post the Q1 results and meetings with management. The firm now sees "clear near-term, midterm, and long-term catalysts" to drive outperformance of Visteon shares. [Read more]

Top 5 Downgrades:

• Nomura downgraded Goodyear Tire (GT) to Neutral from Buy with an unchanged price target of $17.  The firm had previously felt that several positives were not fully priced in by the market, but the recent stock run has made Goodyear fairly valued. [Read more]
• Williams Trading downgraded On Holding (ONON) to Sell from Hold with a $26 price target. While On’s aggressive growth plans are driving "impressive" short term results and significant share gains against "pretty much every athletic footwear brand" except Deckers’ (DECK) HOKA and New Balance, the long term health of the On brand is not being protected as well as the management teams of HOKA and New Balance protect their brands, the firm says. [Read more]
• Berenberg downgraded Nutrien (NTR) to Hold from Buy with a price target of $49, down from $92. The firm says that while Nutrien’s new guidance is 24% below consensus at the mid-point, weak potash and retail performance could result in fiscal 2023 numbers "being skewed toward the lower part of the range." [Read more]
• Credit Suisse downgraded Werner Enterprises (WERN) to Neutral from Outperform with a price target of $48, down from $52. The firm sees limited share upside amid the tough macro environment. [Read more]
• Mizuho downgraded WeWork (WE) to Neutral from Buy with a price target of 30c, down from $1.75. The firm sees the change in CEO as disruptive, "especially amid the current macro headwinds." [Read more]

Top 5 Initiations:

• Guggenheim initiated coverage of MSG Entertainment (MSGE) with a Buy rating and $37 price target. The firm likes the company due it ownership of venue assets around New York City, which it believes are "scarce and well positioned" to benefit from the growing consumer demand for experiential live entertainment. [Read more]
• Piper Sandler initiated coverage of Old Republic International (ORI) with a Neutral rating and $27 price target. The firm notes title insurance profitability faces considerable headwinds from a generally lower level of housing sales driven by higher interest rates and a potential for a slowing economy. [Read more]
• BTIG initiated coverage of Kura Oncology (KURA) with a Buy rating and $31 price target. The firm says Kura‘s "underappreciated" Farnesyltransferase inhibitor program will demonstrate combination proof-of-concept data in solid tumors, "unlocking a large solid tumor opportunity with no competition in the class." [Read more]
• Raymond James initiated coverage of Disc Medicine (IRON) with an Outperform rating and $50 price target. Disc, with a "diverse and differentiated" pipeline, is positioned to become biotech’s next leader in classical hematologic therapeutics, the firm tells investors in a research note. [Read more]
• Stifel initiated coverage of EVgo (EVGO) with a Buy rating and $9 price target. The firm expects "robust" growth in U.S. EV sales over the next decade. [Read more]