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

J.M. Smucker upgrade, Whirlpool downgrade and Rivian 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:

• Morgan Stanley analyst Pamela Kaufman upgraded J.M. Smucker (SJM) to Equal Weight from Underweight with a price target of $158, up from $135. The analyst has seen minimal demand elasticity in its portfolio and thinks topline growth is supported by rapid growth in Uncrustables. Kaufman also upgraded Conagra Brands (CAG) to Overweight from Equal Weight with a price target of $45, up from $34.
• JPMorgan analyst Samik Chatterjee upgraded Fabrinet (FN) to Overweight from Neutral with a price target of $156, up from $126, citing the company’s exposure to secular growth markets and track record to outperform, led by share gains and incremental outsourcing. The analyst also upgraded Ciena (CIEN) to Overweight from neutral with an unchanged price target of $60.
• KeyBanc analyst Steve Barger upgraded MKS Instruments (MKSI) to Overweight from Sector Weight with a $100 price target. The analyst says the company’s competitive position should drive growth in semiconductor and advanced packaging.
• Evercore ISI analyst Jonathan Chappell upgraded Union Pacific (UNP) to Outperform from In Line with a price target of $232, up from $204. The material relative underperformance in shares of late "appropriately captures" Q4 risk, Chappell tells investors.
• Canaccord analyst William Plovanic upgraded Nevro (NVRO) to Buy from Hold with a price target of $67, up from $41. The analyst is bullish on the company’s painful diabetic neuropathy business, which he says now has the maturity and scale to offset weakness in the core spinal cord stimulation business.

Top 5 Downgrades:

• JPMorgan analyst Michael Rehaut downgraded Whirlpool (WHR) to Neutral from Overweight with a price target of $137, down from $145. The analyst continues to view the stock as inexpensive, but believes investor concerns regarding the sustainability of Whirlpool’s North American margins will continue to impact its valuation.
• JPMorgan analyst Samik Chatterjee downgraded Lumentum (LITE) to Neutral from Overweight with a price target of $64, down from $83. The company is facing headwinds associated with its datacom products, which are challenged by inventory digestion from a key customer as well potential downside risk to commercial lasers aligned to broader industrial and the semiconductor equipment cycle, Chatterjee tells investors in a research note. The analyst also downgraded NetApp (NTAP) to Neutral from Overweight with a price target of $71, down from $90.
• Evercore ISI analyst Jonathan Chappell downgraded Norfolk Southern (NSC) to In Line from Outperform with a price target of $262, up from $240, citing relative valuation and what he calls "the most muted share price appreciation potential” of his rail coverage universe.
• Deutsche Bank analyst Mike Linenberg downgraded Allegiant Travel (ALGT) to Hold from Buy with a price target of $75, down from $106. The company has a "very full plate" as it works toward a tentative pilot agreement and plans for the Boeing (BA) 737 MAX induction, Linenberg tells investors in a research note. The analyst also downgraded Spirit Airlines (SAVE) to Hold from Buy with a price target of $24, down from $27.
• JPMorgan analyst Cory Carpenter downgraded Stitch Fix (SFIX) to Underweight from Neutral without a price target. The analyst believes 2023 has the potential to be another tough year for Stitch Fix as the macroeconomic environment potentially brings greater headwinds to apparel spend. Carpenter also downgraded Yelp (YELP) to Underweight from Neutral with a price target of $23, down from $34.

Top 5 Initiations:

• Cantor Fitzgerald analyst Andres Sheppard initiated coverage of Rivian Automotive (RIVN) with an Overweight rating and $22 price target. Rivian benefits from a differentiated product offering, a strong backing from Amazon (AMZN), and a proprietary charging network, but shares are down about 79% year-to-date, so this could be a good entry point, Sheppard tells investors in a research note.
• JPMorgan analyst Stephen Tusa reinstated coverage of DuPont (DD) with an Overweight rating and $75 price target. Despite cyclical risks, the stock price does not fairly reflect the earnings power and quality of the remaining DuPont portfolio, "a disconnect that should continue to remedy over the next 12 months," Tusa tells investors in a research note.
• Raymond James analyst Rick Patel initiated coverage of Capri Holdings (CPRI) with an Outperform rating and $65 price target. Capri has strengthened its brand portfolio in recent years by improving the premium orientation of Michael Kors, while driving strong growth at Versace and Jimmy Choo, using legacy expertise in handbags to grow accessories, Patel tells investors in a research note.
• Piper Sandler analyst Matt Farrell initiated coverage of Trade Desk (TTD) with an Overweight rating and $60 price target. The analyst believes the company is strategically positioned to benefit from the demand for data-driven solutions and the rise of connected TV.
• Goldman Sachs analyst Kash Rangan initiated coverage of TechTarget (TTGT) with a Neutral rating and $57 price target.  The analyst believes the company is an "established leader" in first-party purchase intent data, but sees slower near-term sales with continued macro pressures resulting in increased scrutiny around sales and marketing budgets.

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