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

Sherwin-Williams upgrade, Shopify 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:  

• Jefferies upgraded Sherwin-Williams (SHW) to Buy from Hold with a price target of $275, up from $240. The firm says the stock’s risk/reward is improving as the housing market "troughs." [Read more]
• Barclays upgraded Urban Outfitters (URBN) to Overweight from Equal Weight with a price target of $38, up from $27. The firm views the company’s Q1 results as "across-the-board solid" and sees positive inflections in its sales-to-inventory risk and inventory productivity metrics. [Read more]
• Barclays upgraded Owens Corning (OC) to Overweight from Equal Weight with a price target of $135, up from $113. The investment community is still underappreciating the positive impact that low home inventory will have on new construction, and the implications to builders and building products, the firm says. [Read more]
• BMO Capital  upgraded Camping World (CWH) to Outperform from Market Perform with a price target of $35, up from $26. Following a recent round of channel checks, the firm thinks lower manufacturer production levels will benefit both Camping World’s new recreational vehicle margins as well its used RV retail given the greater likelihood of lean channel inventory levels during the peak summer selling months.
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• BofA upgraded Accolade (ACCD) to Buy from Neutral with an unchanged price target of $16.50. The company’s "steady" growth profile, supported by recurring per member per month and at-risk performance guarantee revenue, should sustain its high-teens growth rate, the firm tells investors in a research note.
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Top 5 Downgrades:

• Exane BNP Paribas downgraded Shopify (SHOP) to Underperform from Neutral. The firm sees "better opportunities elsewhere" given Shopify’s valuation relative to its expected sales growth. [Read more]
• Barclays downgraded SiteOne Landscape (SITE) to Underweight from Equal Weight with a price target of $144, down from $146. The firm sees potential risks to SiteOne’s fiscal 2023 guidance given its commercial exposure, "in the context of an elevated valuation." [Read more]
• KeyBanc downgraded Agilent Technologies (A) to Sector Weight from Overweight without a price target. The company beat fiscal Q2 estimates but reduced fiscal 2023 sales guidance on weakness in biopharma, the firm notes. [Read more]
• Goldman Sachs downgraded Southwestern Energy (SWN) to Sell from Neutral with a price target of $5, down from $5.75. Given the challenging gas price environment this year, the company has cut activity and is declining production with plans to be free cash flow neutral, the firm says. [Read more]
• JPMorgan downgraded Integra LifeSciences (IART) to Underweight from Neutral with a price target of $43, down from $56. Integra announced that it is initiating a voluntary recall of certain products produced at its Boston manufacturing facility and halting production due to high endotoxin levels, the firm notes. [Read more]

Top 5 Initiations:

• BMO Capital initiated coverage of Autodesk (ADSK) with a Market Perform rating and $224 price target. The firm sees a balanced near-term setup for the shares. [Read more]
• JMP Securities initiated coverage of Warby Parker (WRBY) with a Market Perform rating and no price target. Given the challenging macro backdrop, there is no line of sight to a meaningful reacceleration in the company’s sales growth, the firm argues. [Read more]
  
• BMO Capital initiated coverage of PTC (PTC) with an Outperform rating and $166 price target. While acknowledging the potential for macro and execution risks in the near-term, the firm says PTC is poised to continue to gain market, trading at an attractive valuation. [Read more]
• Barclays initiated coverage of RXO Inc. (RXO) with an Overweight rating and $27 price target. RXO has shown it can outgrow peers in a competitive brokerage landscape, leading to "meaningful equity upside if management even partially achieves its aggressive earnings ambitions," the firm says. [Read more]
• Goldman Sachs initiated coverage of Ideaya Biosciences (IDYA) with a Buy rating and $32 price target, which represents 46% upside potential. The company’s lead asset, darovasertib, is well positioned within uveal melanoma, where there is a relatively low bar for clinical success, the firm notes. [Read more]