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

UDR upgrade, Salesforce downgrade, and Lennar resumption among today’s top calls on Wall Street

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Research analysts at Wall Street’s largest banks issue recommendations on whether a stock should be bought, held, or sold. The Fly’s team of financial market experts scours hundreds of research notes daily to uncover the best trading ideas. Check out today’s top analyst calls from around Wall Street, compiled by The Fly.

Top 5 Upgrades:

• Morgan Stanley analyst Adam Kramer upgraded UDR (UDR) to Overweight from Equal Weight with a price target of $47, down from $49. The company has the highest growth in the apartment real estate investment trust space and its diversified model "limits downside," Kramer tells investors in a research note.
• Canaccord analyst Scott Chan upgraded Toronto-Dominion (TD) to Buy from Hold with a price target of C$103, up from C$95, following the bank’s adjusted EPS beat. He has now incorporated TD’s First Horizon acquisition into his model and he believes TD can generate above-average growth with strong P&C momentum complemented by First Horizon, Chan tells investors.
• JPMorgan analyst Marcus Diebel upgraded Just Eat Takeaway.com (JTKWY) to Neutral from Underweight with a price target of 1,913 GBp, up from 1,436 GBp. The European internet sector had a "rather challenging year" in 2022 and visibility on rates developments remain low going into 2023, but with expectations materially reset and comps easing, the outlook for the sector is improving, says the analyst.
• Morgan Stanley analyst Grace Smalley upgraded Associated British Foods (ASBFY) to Overweight from Equal Weight with a price target of 1,900 GBp, up from 1,850 GBp, after assuming coverage of the name. Revenue pressures and cost headwinds are "colliding," creating a "perfect storm" for apparel retail, Smalley tells investors in a research note.
• Keefe Bruyette analyst William Hawkins double upgraded Ageas (AGESY) to Outperform from Underperform with a EUR 42.50 price target. The analyst reiterates an underweight stance on European insurers seeing a poor risk/reward for the sector, especially compared with banks.

Top 5 Downgrades:

• Wolfe Research analyst Alex Zukin last night downgraded Salesforce (CRM) to Peer Perform from Outperform without a price target. The thesis on the stock has changed with the company’s growth "materially decelerating" following a COVID pull-forward, execution missteps, and acquisition "misfires creating meaningful idiosyncratic headwinds," Zukin tells investors in a research note.
• RBC Capital analyst Brad Erickson downgraded DoorDash (DASH) to Sector Perform from Outperform with a price target of $60, down from $70. The analyst is "uncomfortable with a potentially unfavorable risk/reward" given the company’s "likely hypersensitivity to order deceleration" into 2023.
• Wolfe Research analyst Mike Polark downgraded Edwards Lifesciences (EW) to Peer Perform from Outperform. The analyst cites the company’s two consecutive disappointing quarters catalyzing a "soul search," with bulls likely to attribute underperformance to the environment and bears concerned about TAVR market maturity.
• Wedbush analyst Nick Setyan downgraded Cheesecake Factory (CAKE) to Neutral from Outperform with a price target of $35, down from $37. A December acceleration is essential for Q4 SSS growth to hurdle consensus, but even if one occurs, it will not be a good indicator of underlying fundamentals, Setyan tells investors in a research note.
• Evercore ISI analyst David Palmer downgraded Hain Celestial (HAIN) to In Line from Outperform with a price target of $24, down from $30, following news that CEO Mark Schiller is retiring. Both the company’s strategy and path to recovery "are unclear" with the appointment of a new CEO, Palmer tells investors in a research note.

Top 5 Initiations:

• Citi analyst Anthony Pettinari resumed coverage of Lennar (LEN) with a Buy rating and $103 price target. While he expects housing market conditions to deteriorate over the next several quarters, he views sequential improvement in net orders in the second half of next year as "a key catalyst," the analyst said.
• Wedbush analyst Gerald Pascarelli initiated coverage of Cresco Labs (CRLBF) with an Outperform rating and $4.50 price target. The company’s Columbia Care (CCHWF) acquisition, which is expected to close by the end of Q1 of next year, "should prove transformative," but he is modeling for standalone revenue growth to re-accelerate in the coming year on more favorable comps as well as an outlook for better trends in key states.
• B. Riley analyst Christopher Souther initiated coverage of Amprius Technologies (AMPX) with a Buy rating and $14 price target. The company’s silicon nanowire anode technology is well positioned as the early battery winner for the electrification of aviation markets, Souther tells investors in a research note.
• Oppenheimer analyst Jason Helfstein initiated coverage of Rumble (RUM) with a Perform rating. While Helfstein is "impressed" with user and engagement growth, and thinks Rumble’s differentiated approach to content amplification and censorship has been the main driver of growth, he is setting a Perform rating on the stock due to valuation.
• UBS analyst Kunal Madhukar initiated coverage of Angi Inc. (ANGI) with a Sell rating and $2 price target. The analyst warns that the business continues to face structural challenges with consumer spend on homes likely to decline in the near term, as well as on the declining service professionals, significant online and offline competition, and the potential for disintermediation.

Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street