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

Nvidia upgrades, Snowflake downgrade, and Mobileye Global 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:
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• Craig-Hallum upgraded Nvidia (NVDA) to Buy from Hold with a price target of $500, up from $190. The firm notes that Nvidia’s Q2 guide is without precedent in terms of its upside to consensus estimates on a business that is already so large. [Read more] Wedbush [Read more] and Baird [Read more] also upgraded Nvidia to Outperform following quarterly results.
• Susquehanna upgraded Caesars (CZR) to Neutral from Negative with a price target of $39, up from $27, as the firm sees a more balanced risk/reward at current levels. [Read more]
• Wells Fargo upgraded Dycom (DY) to Overweight from Equal Weight with a price target of $120, up from $105, following Q1 earnings. Even with moderating revenue growth, the firm sees a pathway toward EPS of over $7/share by fiscal 2025, which makes current risk/reward compelling. [Read more]
• Wells Fargo upgraded Leidos (LDOS) to Overweight from Equal Weight with a price target of $102, up from $87. The firm thinks Leidos’ current valuation bakes in too much fear around short-term uncertainty, while not taking into account 2024 sales/margin/cash flow upside. [Read more]
• Citi upgraded Carnival (CCL) to Buy from Neutral with a price target of $14, up from $10. The upgrade is based on Citi’s recent cruise work around pricing and web traffic, a belief that the company’s balance sheet is at a "turning point" with the opportunity to become "significantly less ugly" in the years to come, and the "increasingly-evident willingness of investors" to engage in the cruise space in general and Carnival in particular, the firm says. [Read more]

Top 5 Downgrades:

• Rosenblatt downgraded Snowflake (SNOW) to Neutral from Buy with a price target of $170, down from $188. The company reported a Q1 product revenue beat but has seen slower growth and sales productivity since Easter, the firm notes. [Read more]
• Redburn downgraded American Express (AXP) to Sell from Neutral with a $125 price target. With its credit card still highly geared to the U.S. market, tighter lending standards are set to weigh on American Express’ volume growth, the firm tells investors in a research note. [Read more]
• Citi downgraded Dish (DISH) to Neutral from Buy with a price target of $8, down from $18. The firm says Dish needs capital to fund critical investments and upcoming debt maturities, and also needs to identify a clearer path to take revenue share as a wireless retailer, wholesaler or both. [Read more]
• Roth MKM downgraded Digital Turbine (APPS) to Neutral from Buy with a price target of $10, down from $15. The company’s fiscal Q4 results were mixed, driven by advertising headwinds, lower devices in the U.S., revenue mix shift, and a timing mismatch, the firm says. [Read more]
• Barclays downgraded XPeng (XPEV)to Underweight from Equal Weight with a price target of $6, down from $8. The company reported "disappointing" Q1 results and provided a weaker than expected Q2 outlook, the firm says. [Read more]

Top 5 Initiations:

• Wells Fargo initiated coverage of Mobileye Global (MBLY) with an Overweight rating and $50 price target. The key tenet to the positive thesis is Mobileye’s platform strategy and upside potential from SuperVision and Chauffeur adoption into 2024 and beyond, the firm tells investors in a research note. [Read more]
• KeyBanc initiated coverage of Six Flags (SIX) with an Overweight rating and $35 price target. The firm sees merit to Six Flags’ ongoing strategic shift following "a difficult transition in 2022." [Read more]
• KeyBanc initiated coverage of SeaWorld (SEAS) with a Sector Weight rating and no price target. The firm believes SeaWorld has "executed a healthy turnaround," but also believes meaningful stock upside hinges on evidence that destination travel demand can continue to grow. [Read more]
• KeyBanc initiated coverage of Cedar Fair (FUN) with an Overweight rating and $54 price target. The firm believes Cedar Fair offers "the cleanest exposure to this theme as a regional pure play." [Read more]
• Lake Street initiated coverage of PetMed Express (PETS) with a Buy rating and $20 price target. The firm thinks continued growth in U.S. household pet ownership creates a favorable long-term tailwind for PetMeds. [Read more]