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

AT&T upgrade, Salesforce downgrade, and Shopify 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:

  • Argus analyst Joseph Bonner upgraded AT&T (T) to Buy from Hold with a $24 price target. The company’s Mobility business is driving its overall results while validating the management’s strategic realignment away from entertainment assets and toward core wireless and fiber broadband expansion strategy, the analyst tells investors in a research note.
  • UBS analyst Cody Ross upgraded Hershey (HSY) to Buy from Neutral with a price target of $269, up from $244. The analyst believes Hershey will "remain in a beat and raise cycle through 2025."
    Barclays analyst David Strauss upgraded Huntington Ingalls (HII) to Overweight from Equal Weight with a $270 price target. The analyst remains positive on the defense sector heading into 2023, citing accelerating modernization outlays the weak macro environment.
  • Morgan Stanley analyst Gaurav Rateria upgraded MakeMyTrip (MMYT) to Overweight from Equal Weight with an unchanged price target of $36. Rateria sees an entry point with the stock having underperformed in the last three months, arguing that the strong recovery in travel and MakeMyTrip’s resilient margins make the risk-reward favorable.
  • JPMorgan analyst Adrian Huerta upgraded Vulcan Materials (VMC) to Overweight from Neutral with a price target of $200, up from $185. The analyst remains constructive on the construction material sector’s outlook going into next year despite weaker volume expectations given strong pricing growth coming from this year’s carried over momentum and better contained energy costs.

Top 5 Downgrades:

  • Baird analyst Rob Oliver downgraded Salesforce (CRM) to Neutral from Outperform with a price target of $150, down from $200. The macro environment remains challenged and recent executive departures are a concern, Oliver tells investors in a research note. ‘
  • UBS analyst Cody Ross downgraded Mondelez (MDLZ) to Neutral from Buy with a price target of $71, up from $70. The analyst sees limited upside from current share levels and believes macro headwinds will likely cap the company’s earnings growth in 2023.
  • BTIG analyst Clark Lampen downgraded Unity (U) and AppLovin (APP) to Neutral from Buy without a price target. The analyst also reduced estimates for the companies to reflect the potential for pressure on the mobile gaming space to last another 12-24 months.
  • JPMorgan analyst David Karnovsky downgraded Sinclair Broadcast (SBGI) to Underweight from Neutral with a price target of $16, down from $25. The analyst also reduced estimates to reflect a more challenged outlook for the company’s advertising and distribution revenue.
  • Credit Suisse analyst Andrew Kligerman downgraded Principal Financial Group (PFG) to Underperform from Neutral with an unchanged price target of $86. The analyst cites valuation for the downgrade and prefers owning shares of Voya Financial (VOYA).

Top 5 Initiations:

  • UBS analyst Kunal Madhukar initiated coverage of Shopify (SHOP) with a Sell rating and $30 price target. The analyst warns that his projections for personal consumer expenditures on goods suggests that consensus estimates for gross merchandise value and revenue are not de-risked for a recession in the first half of 2023.
  • UBS analyst Kunal Madhukar initiated coverage of Match Group (MTCH) with a Neutral rating and $46 price target. The analyst does not believe that Match can deliver sustained mid-to-high teens consolidated revenue growth given that Tinder – 57% of total revenue – seems "mature" and other apps are growing slower in aggregate.
  • UBS analyst Kunal Madhukar initiated coverage of Bumble (BMBL) with a Neutral rating and $24 price target. The pivot from subscriptions to consumables points to Bumble App approaching saturation in core markets, but he believes that there is a significant opportunity for the company internationally, the analyst tells investors in a research note.
  • JPMorgan analyst Omer Sander initiated coverage of Churchill Downs (CHDN) with a Neutral rating and $243 price target. The analyst’s 2023 estimates are below consensus, as he assumes a high-single-digit same store revenue decline taking into account a "downbeat" macro environment.
  • Citi analyst Jason Gursky initiated coverage of Lockheed Martin (LMT) with a Buy rating and $546 price target. The analyst is positive on the growth outlook for Department of Defense spending through the remainder of the decade and the diversified nature of Lockheed’s capabilities across all domains. He also started coverage of Leidos (LDOS), General Dynamics (GD), and SAIC (SAIC) with Buy ratings; L3Harris Technologies (LHX), Raytheon Technologies (RTX), and Northrop Grumman (NOC) with Neutral ratings; and assumed coverage of Boeing (BA) with a Buy.

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

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