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

Fastly double upgrade, Caterpillar downgrade and Okta initiation among today’s top calls on Wall Street

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Check out today’s top analyst calls from around Wall Street:

Top 5 Upgrades: 

• BofA double upgraded Fastly (FSLY) to Buy from Underperform with a price target of $16, up from $10.50. While short-term results could still fluctuate, the firm is focused on the potential value creation in the intermediate-term. [read more]

• Roth MKM upgraded Five Below (FIVE) to Buy from Neutral with a price target of $240, up from $180. Over the last several months, the company’s "abrupt shift to value-oriented merchandise" has taken shape more quickly than anticipated, the analyst tells investors. [read more]

• BofA upgraded Ralph Lauren (RL) to Buy from Neutral with a price target of $145, up from $130. BofA thinks management has "baked in an appropriate level of cautiousness" on the U.S. value channel and European wholesale business in their outlook. [read more]

• Evercore ISI upgraded Zillow Group (ZG) to Outperform from In Line with a price target of $61, up from $34. On a macro level, the firm anticipates Q1 being the trough quarter for residential real estate and would anticipate top-line trends for Zillow starting to positively inflect in Q2. [read more]

• RBC Capital upgraded Verrica Pharmaceuticals (VRCA) to Outperform from Sector Perform with a price target of $11, up from $4. The firm now has "increased confidence" in the regulatory path forward for VP-102 and a more granular view on market dynamics and strategy supported by data from physicians and payers. [read more]

Top 5 Downgrades: 

• Baird downgraded Caterpillar (CAT) to Neutral from Outperform with a price target of $230, down from $290. The analyst believes the shares "are nearing a cyclical pivot point" following the strong recent outperformance. [read more]

• Cowen downgraded Capri Holdings (CPRI) to Market Perform from Outperform with a price target of $55, down from $70. The analyst says the Michael Kors brand needs to "foster cultural relevance" and prefers to watch elevated inventory and the pause on price increases from the sidelines. [read more]

• BofA downgraded Globus Medical (GMED) to Underperform from Buy with a price target of $63, down from $83, after the company agreed to acquire NuVasive (NUVA) in an all-stock deal. BofA struggles with Globus’ decision to dilute both revenue growth and margins for scale when the company has been consistently taking share year after year. [read more]

• Jefferies downgraded Signa Sports (SSU) to Hold from Buy with a price target of $4, down from $8. The analyst sees an "uncertain path forward" for Signa due to macro challenges and category-specific softness. [read more]

• Needham downgraded Surmodics (SRDX) to Hold from Buy after the company’s Q1 earnings and update last week. Abbott’s (ABT) acquisition of Cardiovascular Systems (CSII) also creates additional uncertainty about SurVeil, the firm said. [read more]

Top 5 Initiations: 

• BofA initiated coverage of Okta (OKTA) with an Underperform rating and $64 price target. The Street is modeling 18% revenue growth over the next two years, but BofA thinks this is "too optimistic." [read more]

• MoffettNathanson initiated coverage of Confluent (CFLT) with an Outperform rating and $36 price target. Confluent is a clear leader in its space and the firm sees share outperformance over the next year. [read more]

• JPMorgan reinstated coverage of Disney (DIS) with an unchanged Overweight rating and unchanged price target of $135 following a period of restriction. The company reported strong fiscal Q1 results and the firm is "encouraged" by newly appointed CEO Bob Iger’s transformation plan. [read more]

• H.C. Wainwright initiated coverage of OmniAb (OABI) with a Buy rating and $11 price target. The analyst says the company has the industry’s only four-species antibody discovery platform. [read more]

• MoffettNathanson initiated coverage of HashiCorp (HCP) with an Outperform rating and $43 price target. The firm sees the potential for HashiCorp’s offerings to thrive as enterprises more actively scrutinize their cloud spending. [read more]

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