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

Enphase Energy upgrade, Best Buy downgrade, and Zillow Group 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:

• Janney Montgomery Scott upgraded Enphase Energy (ENPH) to Buy from Neutral with a $282 fair value estimate. Since the firm had initiated coverage on the stock on February 2, shares have declined by about 13% while its view of the relative value has increased by about 18%, Janney tells investors. [Read more]

• Wells Fargo upgraded State Street (STT) to Overweight from Equal Weight with a price target of $98, up from $88. The bank can outperform in a recession given its less credit risk while no recession would increase earnings estimates above a base case of 10% in 2023 and 2024, the firm says. [Read more]

• BofA upgraded Union Pacific (UNP) to Buy from Neutral with a price target of $241, up from $218, following the CEO succession plans. [Read more]

• Raymond James upgraded Frontier Group (ULCC) to Outperform from Market Perform with a $15 price target. The firm sees an attractive risk/reward and has increased conviction in the shares following analysis and industry commentary. [Read more]

• CLSA upgraded Baozun (BZUN) to Outperform from Underperform with a price target of $7, up from $4.40. The firm believes Baozun’s Q4 results were negatively affected by "massive infections," but says this will be a one-off. [Read more]

Top 5 Downgrades:

• Telsey Advisory downgraded Best Buy (BBY) to Market Perform from Outperform with a price target of $83, down from $88. The firm believes Best Buy’s business is likely to experience a further decline related to the "challenging" macro trends weighing on discretionary consumer demand, given high inflation and rising interest rates. [Read more]

• Oppenheimer downgraded Opendoor Technologies (OPEN) to Perform from Outperform without a price target. The company’s third-party ramp is slower than previously disclosed and its "lower-margin" Q2 of 2022 cohort continues to handicap margins, the firm says. [Read more]

• Craig-Hallum downgraded Sono Group (SEV) to Hold from Buy with a price target of $1, down from $4. With its #saveSION program unsuccessful, Sono Motors has made the tough decision to sunset its plans for its Sion EV, the firm notes. [Read more] Cantor Fitzgerald also downgraded Sono Group to Neutral with a price target of $1, down from $3. [Read more]

• Craig-Hallum downgraded MasTec (MTZ) to Hold from Buy with a $97 price target. MacTec is expecting a slower start to 2023 with impacts from project pushouts and start up headwinds as well as some supply challenges, the firm notes. [Read more] 

• Bernstein downgraded Williams (WMB) to Market Perform from Outperform with a price target of $34, down from $37, citing falling gas prices and its Haynesville forecast. [Read more] 

Top 5 Initiations:

• JPMorgan initiated coverage of Zillow Group (ZG, Z) with an Overweight rating and $48 price target. The company’s total addressable market is large at $200B-plus, and it is well positioned to lead industry innovation, take share, and drive double-digit percentage growth, the firm says. [Read more]

• JPMorgan initiated coverage of Redfin (RDFN) with a Neutral rating and $8 price target. The firm notes that the company’s brokerage model makes navigating through the current volatile environment more challenging, and it has not yet delivered consistent adjusted EBITDA profit. [Read more]

• Goldman Sachs reinstated coverage of U.S. Bancorp (USB) with a Neutral rating and $51 price target following the closing of the Union Bank transaction and with the price target offering 7% upside and 11% total return potential. [Read more] 

• Raymond James resumed coverage of Live Oak Bancshares (LOB) with a Market Perform rating and no price target. The key to further profitability improvement will hinge on Live Oak’s ability to drive core deposit growth going forward, which the firm believes is adequately reflected in the stock’s "deserved premium" valuation versus peers. [Read more]

• Cowen initiated coverage of RXO Inc. (RXO) with a Market Perform rating and $22 price target. Research suggests RXO is a leader in the digital brokerage space, but the company’s near-term earnings should be pressured by a weak freight market, the firm says. [Read more]

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