Coinbase upgrade, Abbott downgrade, and Johnson & Johnson resumption 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:
- Atlantic Equities upgraded Coinbase (COIN) to Overweight from Neutral with an unchanged price target of $70. The company’s Q1 results confirmed management’s focus on returning the business to sustainable profitability, the firm says. [Read more]
- Jefferies upgraded Ford (F) to Buy from Hold with a price target of $16, up from $13. Last week’s investor event increased confidence that Ford finally has the plan and management team in place to "close a deficit of execution that has dogged shares for years," the firm says. [Read more]
- Morgan Stanley upgraded Medtronic (MDT) to Overweight from Equal Weight with a $104 price target after the research coverage was assumed by a different analyst at the firm. Morgan Stanley believes that following a "tough time" over the past 18 months, Q1 likely marked a turning point for medical technology fundamentals. [Read more]
- Roth MKM upgraded Boston Beer (SAM) to Buy from Neutral with a price target of $386, up from $274. The firm believes seltzers and Boston Beer’s Truly will benefit in the summer from Bud Light (BUD) share losses. [Read more]
- Roth MKM upgraded Constellation Brands (STZ) to Buy from Neutral with a price target of $270, up from $216. As the weather warms, Constellation’s share gains for Modelo Especial and Corona should accelerate, the firm says. [Read more]
Top 5 Downgrades:
- Morgan Stanley downgraded Abbott Laboratories (ABT) to Equal Weight from Overweight with a $112 price target after research coverage was assumed by a different analyst at the firm. Following the post-Q1 earnings report rally on procedure volumes, the shares are fairly valued, Morgan Stanley says. [Read more]
- Macquarie downgraded NeoGames (NGMS) to Neutral from Outperform with a $29.50 price target following the announcement of Aristocrat’s $29.50 per share cash offer for the company. [Read more]
- RBC Capital downgraded Dr. Martens (DOCMF) to Sector Perform from Outperform with a price target of 180 GBp, down from 230 GBp. The firm cites near-term challenges. [Read more]
- Barclays downgraded Millicom International Cellular (TIGO) to Equal Weight from Overweight with a price target of SEK 195, down from SEK 205. The investment case for Millicom remains linked to a potential bid and the company’s Q1 results were "somewhat disappointing, and do little to improve the likelihood of a satisfactory offer," says Barclays. [Read more]
- JPMorgan downgraded EDP Renovaveis (EDRVF) to Neutral from Overweight with a price target of EUR 22, down from EUR 23. The firm says the company’s delays in capacity additions and slowdown in its earnings momentum create "no reason to remain positive on the stock in the foreseeable future." [Read more]
Top 5 Initiations:
- Citi resumed coverage of Johnson & Johnson (JNJ) with a Buy rating and $185 price target following a period of restriction. Following the initial public offering of Kenvue (KVUE), Johnson & Johnson has "world-leading" medical technology and pharmaceutical franchises, the firm says. [Read more]
- JPMorgan initiated coverage of Kenvue with an Overweight rating and $29 price target. As the largest pure-play consumer health company in the world following its separation from parent Johnson & Johnson, Kenvue is "uniquely positioned" to benefit from consumer mega trends of self-care and aging, the firm says. [Read more] BofA [Read more] and RBC Capital [Read more] also started coverage of the stock with Buy-equivalent rating, while Citi [Read more], Deutsche Bank [Read more], UBS [Read more] and Goldman Sachs [Read more] initiated the name with Neutral-equivalent ratings.
- William Blair initiated coverage of Vertex Pharmaceuticals (VRTX) with an Outperform rating and $382 fair value estimate. Vertex’s valuation and growth is largely tied to the cystic fibrosis franchise, but its specialty medicines pipeline is beginning to add near-term commercial value with exa-cel in sickle cell disease and beta thalassemia, the firm says. [Read more]
- Needham initiated coverage of Confluent (CFLT) with a Buy rating and $35 price target. The data streaming "genie is out of the bottle" with consumer expectations for real-time data are permeating enterprise organizations resulting in an estimated $60B 2022 total addressable market, the firm notes. [Read more]
- Morgan Stanley initiated coverage of Cooper Companies (CCO) with an Equal Weight rating and $410 price target. The company’s surgical business looks solid, but it could exhibit more cyclicality than expected, the firm says. [Read more]
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