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

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

PayPal upgrade, CVS Health downgrade, and Hershey 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:

  • Truist analyst Andrew Jeffrey upgraded PayPal (PYPL) to Buy from Hold with a price target of $95, up from $75. The analyst contends that investors have been "too negative" on the stock given the company’s "durable" long-term organic revenue growth.
  • Baird analyst David Koning upgraded Block (SQ) to Outperform from Neutral with a price target of $78, up from $62. The analyst believes the company will benefit from macro trends such as rising interest rates and inflation.
  • Wells Fargo analyst Daniel Politzer upgraded Wynn Resorts (WYNN) to Overweight from Equal Weight with a price target of $101, up from $74. The analyst argues that Wynn has a viable path to recapturing most/all of its 2019 VIP EBITDA, despite the absence of junkets, through direct VIP/premium mass play, which he believes is not reflected in the stock.
  • Wedbush analyst David Chiaverini upgraded M&T Bank (MTB) to Outperform from Neutral with a $170 price target. The analyst views M&T as a defensive safe haven from a credit quality standpoint.
  • BofA analyst Travis Steed upgraded Becton Dickinson (BDX) to Buy from Neutral with a price target of $290, up from $250. In an environment where "quality will continue to matter," Becton Dickinson has been executing and he sees the company having a path for multi-year double digit EPS growth, Steed tells investors.

Top 5 Downgrades:

  • Evercore ISI analyst Elizabeth Anderson downgraded CVS Health (CVS) to In Line from Outperform with a price target of $100, down from $120. The analyst sees CVS Health’s valuation as "relatively range bound" in 2023 pending greater certainty regarding ultimate portfolio composition.
  • Wells Fargo analyst Chris Carey downgraded Molson Coors (TAP) to Underweight from Equal Weight with a price target of $45, down from $52. The analyst sees significant downside to Street estimates in 2023, and potential valuation reverts to the low-end of historical ranges. He added Molson Coors to the Wells Fargo tactical ideas list for Q1 2023.
  • Wolfe Research analyst Peter Supino downgraded T-Mobile (TMUS) to Peer Perform from Outperform without a price target. Supino is concerned about slowing industry subscriber growth, fading Sprint churn benefits, long-term capital needs for home Internet, a "fair but full" consensus, and downside risk in the multiple, though he acknowledges that T-Mobile remains a great story.
  • Wolfe Research analyst Peter Supino downgraded Fox Corp. (FOXA) to Underperform from Peer Perform with a $28 price target. Fox Corp.’s 2023 catalysts are essentially priced into the stock and consensus estimates, leaving room to the downside given that 43% of revenue is exposed to TV advertising, which is deteriorating, and is now entering a less familiar streaming world plus the tougher macro, Supino tells investors in a research note. The analyst also downgraded Lionsgate (LGF.A; LGF.B) to Underperform from Peer Perform with a $5 price target.
  • RBC Capital analyst Nik Modi downgraded Mondelez (MDLZ) to Sector Perform from Outperform with an unchanged price target of $69. The analyst argues that as the global macro environment weakens, it is hard to justify further upside to earnings estimates, which is what would be required given the stock is near RBC’s price target.

Top 5 Initiations:

  • Wells Fargo analyst Chris Carey initiated coverage of Hershey (HSY) with an Underweight rating. Execution at Hershey has been solid but valuation is near all-time highs, and the analyst doesn’t think its EPS algorithm has step-changed.
  • Wells Fargo analyst Chris Carey initiated coverage of General Mills (GIS) with an Equal Weight rating. While pricing tailwinds carry well into 2023, and Carey doesn’t have a negative view on EPS versus Street, the analyst believes the stock is at peak valuation, his work suggests that General Mills’ long-term EPS algorithm hasn’t changed much, and he expects estimate hikes to slow.
  • Wells Fargo analyst Chris Carey initiated coverage of Kraft Heinz (KHC) with an Equal Weight rating and $43 price target. The analyst expects Kraft’s earnings growth to lag peers as sales sustainability takes priority
  • Wells Fargo analyst Chris Carey initiated coverage of Mondelez with an Overweight rating and $75 price target. The analyst likes the stock’s risk/reward, saying the shares are defensive and offer long-term growth.
  • JPMorgan analyst Anupam Rama initiated coverage of Syndax (SNDX) with an Overweight rating and $41 price target. The Overweight rating is predominantly driven by revumenib in acute leukemias, which is "de-risked" and has "best-in-class potential, based on known data to date," Rama tells investors in a research note.

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

Published first on TheFly

See today’s best-performing stocks on TipRanks >>

Read More on PYPL:

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles