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

Cigna upgrade, Apple downgrade, and FedEx 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: 

• BofA upgraded Cigna (CI) to Buy from Neutral with an unchanged price target of $320. The firm sees an improving risk/reward given its "stronger than average" growth outlook for commercial and pharmacy benefit managers. [Read more]
• BofA upgraded Molson Coors (TAP) to Neutral from Underperform with a price target of $68, up from $54. The company’s recent market share gains related to the Bud Light (BUD) boycott have lasted long enough to positively impact sales and earnings, the firm tells investors in a research note. [Read more]
• MoffettNathanson upgraded AT&T (T) to Market Perform from Underperform with an unchanged price target of $17. The firm does not expect wireless fundamentals generally, or at AT&T specifically, getting materially better, but believes AT&T shares now appropriately reflect this reality. [Read more]
• KeyBanc upgraded Lennox (LII) to Overweight from Sector Weight with a $355 price target. The firm finds the company’s "self-help story particularly compelling" and sees "several idiosyncratic factors" that set the stage for the most share upside in the HVAC manufacturer group. [Read more]
• BofA upgraded McCormick (MKC) to Buy from Underperform with a price target of $100, up from $75. BofA now sees easing volume compares, particularly in the Americas and China, as well as an improved cost outlook and margin trajectory as reasons to get more constructive. [Read more]

Top 5 Downgrades:

• DA Davidson downgraded Apple (AAPL) to Neutral from Buy with a price target of $185, down from $193. The firm believes that any good news from the AR/VR product launch is already reflected in the share price and that there are "important structural challenges" for Apple when it comes to consumer adoption of AR/VR hardware, which could limit the near-term impact on its sales and profitability. [Read more]
• Wells Fargo downgraded Dollar General (DG) to Equal Weight from Overweight with a price target of $165, down from $178, after meetings with management. Wells says that while Dollar General attempted to provide a reassuring message, it is concerned the company is "facing deeper issues with an investment cycle needed to get it back on track." [Read more]
• JPMorgan downgraded Cabot (CBT) to Neutral from Overweight with a price target of $80, down from $87. The firm thinks there may be opportunities to purchase Cabot shares at more favorable prices over the coming months. [Read more]
• Barclays downgraded Epam Systems (EPAM) to Equal Weight from Overweight with a price target of $220, down from $310, after the company lowered its Q2 and fiscal 2023 guidance. [Read more] KeyBanc also downgraded Epam Systems to Sector Weight from Overweight without a price target. [Read more]
• Morgan Stanley downgraded AMC Networks (AMCX) to Underweight from Equal Weight with a price target of $12, down from $19. The firm says accelerating cord-cutting creates further downside risks to the shares.
  [Read more]

Top 5 Initiations:

• Atlantic Equities initiated coverage of FedEx (FDX) with an Overweight rating and $265 price target. The company is through its cost reduction programs and is shifting to a "flexible, margin enhancing," ground focused integrated network, the firm says. [Read more]
• Atlantic Equities initiated coverage of UPS (UPS) with a Neutral rating and $162 price target. The firm believes UPS over-earned during COVID and expects its financial performance to "mean revert." [Read more]
• Wedbush initiated coverage of Booking Holdings (BKNG) with an Outperform rating and $3,060 price target as part of a broader research note on Online Travel & Mobility while also adding the stock to Wedbush Best Ideas List. The firm is positive on the company’s position as the leading online travel agency in the world with an expected 1B-plus room night stays via its platform in 2023. [Read more]
• Wedbush initiated coverage of DoorDash (DASH) with a Neutral rating and $75 price target. Leading platforms including Uber (UBER), DoorDash, and Lyft (LYFT) will be challenged to differentiate and maintain market share as ridesharing and delivery become increasingly commoditized services, the firm contends. [Read more]
• Wedbush initiated coverage of Airbnb (ABNB) with a Neutral rating and $130 price target. The firm likes Airbnb shares "very much on a long-term basis," but would wait to see if it can "find a more opportune time to invest." [Read more]