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

Adobe upgrade, Target downgrade, and Eldorado Gold 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:

• Wells Fargo upgraded Adobe (ADBE) to Overweight from Equal Weight with a price target of $525, up from $420. The artificial intelligence debate continues to drive shares of Adobe, says the analyst, who left recent work more confident generative AI is a tailwind to the company. [read more]
• Keefe Bruyette upgraded Principal Financial Group (PFG) to Market Perform from Underperform with a price target of $75, down from $77. The analyst cites valuation for the upgrade with the shares down 16% year-to-date. [read more]
• Morgan Stanley upgraded Corning (GLW) to Overweight from Equal Weight with a price target of $38, up from $35. The analyst believes the company’s estimates and valuation "are desrisked." [read more]
• Vertical Research upgraded Vertiv Holdings (VRT) to Buy from Hold, citing increased confidence that the operational turnaround is "gaining momentum and is sustainable" following Q1 results that were "solid." [read more]
• Stifel upgraded Repare Therapeutics (RPTX) to Buy from Hold with a price target of $16, up from $11, following initial lunresertib data. The firm calls Repare’s recently disclosed monotherapy efficacy data "underwhelming," but also thinks the debate on the stock revolves around the pursuit of combination therapies and the extent to which drugs can be synergistic with lunresertib, the analyst tells investors. [read more]

Top 5 Downgrades:

• Citi downgraded Target (TGT) to Neutral from Buy with a price target of $130, down from $177. After significant sales gains in 2020-2022, Target’s 2023 is showing that its sales have peaked and are likely to fall further, creating a "giveback" situation, the analyst tells investors in a research note. [read more]
• Piper Sandler downgraded Qualys (QLYS) to Underweight from Neutral with a price target of $109, down from $120. The analyst sees risk to the company’s back-half of the year expectations and continued margin pressure. [read more]
• Wells Fargo downgraded UiPath (PATH) to Equal Weight from Overweight with an unchanged price target of $20. With shares up 44% year-to-date, the company’s initial turnaround is mostly priced in, the analyst tells investors in a research note. [read more]
• Piper Sandler downgraded First Northwest Bancorp (FNWB) to Neutral from Overweight with a price target of $13, down from $14, after taking over coverage of the name. The analyst cites the bank’s below average profitability outlook and limited visibility of future benefits from its partnership investments for the downgrade. [read more]
• Vertical Research downgraded Celanese (CE) to Hold from Buy with a $122 price target. [read more]

Top 5 Initiations:

• BMO Capital resumed coverage of Eldorado Gold (EGO) with an Outperform rating with a price target of C$17, down from C$18 following the closing of a C$135M bought deal. The stock represents a compelling opportunity on valuation relative to its peers and the firm believes that the recent events have stabilized the balance sheet and set the company up well to pursue its significant organic growth opportunities, [read more]
• Canaccord initiated coverage of the eVTOL, or electric vertical takeoff and landing, aircraft sector with three Buy ratings and two Holds. Canaccord started Archer Aviation (ACHR) with a Buy rating and $9 price target, Joby Aviation (JOBY) with a Buy rating and $8 price target and Eve Holding (EVEX) with a Buy rating and $10 price target. The firm also initiated Vertical Aerospace (EVTL) with a Hold rating and $2 price target and started Lilium (LILM) with a Hold rating and $1.20 price target. [read more]
• Susquehanna initiated coverage of RXO Inc. (RXO) with a Neutral rating and $20 price target. RXO‘s model and shares should perform well in a "risk-on truckload backdrop," the analyst tells investors in a research note. [read more]
• Alliance Global Partners initiated coverage of UpHealth (UPH) with a Buy rating and $4.30 price target. Though management has characterized 2023 as a "recalibration" year, the firm believes "much of the heavy lifting has already taken place" and it expects shares to "recalibrate higher." [read more]
• Truist initiated coverage of Leonardo DRS (DRS) with a Buy rating and $19 price target. The analyst views Leonardo as a "compelling SMID-cap defense play that will help fill the void left by recent acquisitions in the sector." [read more]