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

Meta Platforms upgrade, Costco downgrade and Boeing initiation among today’s top calls on Wall Street

Institutional investors and professional traders rely on The Fly to learn which companies the best analysts on Wall Street are saying to buy and sell.

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:

  • Itau BBA analyst Thiago Kapulskis upgraded Meta Platforms (META) to Outperform from Market Perform with a $102 price target. The analyst believes the "right price has finally come" to buy shares of Meta Platforms.
  • Oppenheimer analyst Jason Helfstein upgraded DoorDash (DASH) to Outperform from Perform with a 12-18 month price target price target of $70. The company’s increased disclosure shows improving U.S. restaurant margins, Helfstein tells investors in a research note.
  • Guggenheim analyst John DiFucci upgraded Workday (WDAY) to Neutral from Sell with a $142 price target. Amid the "recent market turmoil," shares have declined 23% and are now below his current price target and even below his original target from August 11, DiFucci tells investors.
  • Guggenheim analyst John DiFucci upgraded Okta (OKTA) to Buy from Neutral with an unchanged price target of $65. The company is facing challenges "that could take several quarters to effectively address," but the current valuation levels are "too compelling to ignore," DiFucci argues.
  • Argus analyst Kristina Ruggeri upgraded Church & Dwight (CHD) to Buy from Hold with a $78 price target. The analyst is positive on the company having made progress in resolving its supply-chain and production issues and expects its fill rates to return to normal by the end of the year.

Top 5 Downgrades:

  • Wells Fargo analyst Edward Kelly downgraded Costco Wholesale (COST) to Equal Weight from Overweight with a price target of $490, down from $600. The analyst sees a "number of hurdles" in the company’s path and calls Costco a "rich multiple stock."
  • Oppenheimer analyst Jason Helfstein downgraded Redfin (RDFN) to Underperform from Perform with a $1.30 price target. The analyst believes the company’s business model is "fundamentally flawed."
  • Northcoast analyst Jim Sanderson downgraded Papa John’s (PZZA) to Neutral from Buy with no price target, citing his concern that growing macroeconomic headwinds, continued inflationary pressures and competition in the U.S. will limit near-term upside.
  • Berenberg analyst Fulvio Cazzol downgraded Estee Lauder (EL) to Hold from Buy with a price target of $220, down from $323. The analyst sees limited visibility into a potential recovery for the company in fiscal 2023.
  • Scotiabank analyst Ben Isaacson downgraded Westlake (WLK) to Underperform from Sector Perform with a price target of $100, down from $122. Westlake has higher North American exposure than most of its chemical peers at a time when the U.S. is likely to enter a recession on a lagged basis, Issacson tells investors.

Top 5 Initiations:

  • Redburn analyst Olivier Brochet initiated coverage of Boeing (BA) with a Neutral rating as he rolled out coverage of the aerospace and defense sector. Valuations for Boeing and Rolls Royce (RYCEY) "appear deceptively cheap," said Brochet, who thinks the pair are in a less comfortable position in the current environment due to "fragile" balance sheets and cash flow downside risks.
  • Wolfe Research analyst Joshua Tilton initiated coverage of Splunk (SPLK) with an Outperform rating and $90 price target. The company’s "cult like customer base is stickier than people realize" and competition fears are somewhat overdone, Tilton tells investors in a research note.
  • Morgan Stanley analyst Eric Serotta initiated coverage of Boston Beer (SAM) with an Underweight rating and $300 price target. While Serotta acknowledges Boston Beer’s "significant momentum" behind Twisted Tea and "impressive innovation track record," he sees downside to consensus expectations for 2023/2024, the company’s long-term growth guidance and the market-implied growth outlook given increasing competition in the "beyond beer" space.
  • Wolfe Research analyst Alex Zukin initiated coverage of Datadog (DDOG) with a Peer Perform rating without a price target. The combination of valuation, risk-off sentiment, and decelerating near term growth trends "make the catalyst path difficult," Zukin argues.
  • Lake Street analyst Thomas Flaten initiated coverage of Assertio Holdings (ASRT) with a Buy rating and $7 price target. The company’s transformation has "created a new commercial model" and disease-state agnostic commercial platform, capable of supporting products across a broad range of indications, physician specialties, and channels, Flaten tells investors.
Keywords: analyst, analyst calls, upgrades, downgrades, initiations, research, wall street

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