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

Roblox upgrade, Caterpillar downgrade, and McCormick initiation among today’s top calls on Wall Street

Want to get stock-moving news before everyone else? Sign up today for The Fly.

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

Top 5 Upgrades:

• Jefferies upgraded Roblox (RBLX) to Buy from Hold with a price target of $48, up from $30. The analyst sees a "favorable narrative " amid the company’s sales growth with margin inflection and an advertising option, supported by strong net bookings expansion and underlying user metrics. [read more]
• Piper Sandler upgraded Zimmer Biomet (ZBH) to Overweight from Neutral with a price target of $145, up from $135. The analyst cites favorable commentary on the "large" joint market at the American Academy of Orthopaedic Surgeons conference and the company’s "conservative" guidance for the upgrade. [read more]
• Barclays upgraded United Airlines (UAL) to Overweight from Equal Weight with a price target of $80, up from $52. Airlines should benefit from strong demand this Spring, the analyst tells investors in a research note. [read more]
• Baird upgraded KeyCorp (KEY) to Outperform from Neutral with an unchanged price target of $20. The regional bank risk/reward trade-off is "very constructive at current prices," the analyst tells investors in a research note. [read more] KeyCorp was also upgraded to Neutral from Underweight at Piper Sandler. [read more]
• Craig-Hallum upgraded Playstudios (MYPS) to Buy from Hold with a price target of $5, up from $4. Playstudios’ Q4 results and 2023 guidance were better than Street expectations, and the business is on the cusp of improved operating leverage, the analyst tells investors in a research note. [read more]

Top 5 Downgrades:

• UBS downgraded Caterpillar (CAT) to Sell from Neutral with a price target of $225, down from $230. The company’s "downshift in growth" is underappreciated at current share levels, the analyst tells investors. [read more]
• Truist downgraded SVB Financial (SIVB) to Hold from Buy with a price target of $100, down from $174. With the increasing risk of accelerated deposit outflows, according to Bloomberg, there is too much uncertainty to recommend the stock to investors, the analyst said. [read more] SVB was also downgraded to Peer Perform from Outperform at Wolfe Research [read more] and to Market Perform from Outperform at Raymond James. [read more]
• JPMorgan downgraded DocuSign (DOCU) to Underweight from Neutral with a price target of $48, down from $58. After providing a preliminary fiscal 2024 outlook during its Q3 earnings call that investors likely viewed as conservative and setting an achievable growth bar, DocuSign provided full year guidance that "falls a bit short" on sales and the margin guidance does not seem to allow for much of the recent headcount reductions to flow through, the analyst argues. [read more]
• Baird downgraded Allbirds (BIRD)  to Neutral from Outperform with a price target of $2, down from $7. The company missed Q4 sales and adjusted-EBITDA estimates, reflecting weaker demand and heightened promotional headwinds, the analyst tells investors in a research note. [read more] Allbirds was also downgraded to Market Perform from Outperform at Telsey Advisory [read more], to Neutral from Buy at Guggenheim [read more], and to Market Perform from Outperform at William Blair. [read more]
• Barclays downgraded Southwest (LUV) to Equal Weight from Overweight with a price target of $38, down from $42. Airlines should benefit from strong demand this Spring, but the firm is swapping its "safe" airline recommendation to Alaska Air (ALK), the analyst said. [read more]

Top 5 Initiations:

• UBS initiated coverage of McCormick (MKC) with a Sell rating and $71 price target. The analyst sees "more risk ahead" despite the stock’s year-to-date underperformance, saying the Street seems to be expecting sales and earnings growth to "snap back" to McCormick’s long-term algorithm in fiscal 2024 "despite multiple warning signs." [read more]
• Roth MKM initiated coverage of Chewy (CHWY) with a Buy rating and $52 price target. The "building strength of Chewy’s core business stands out," says the firm, which contends that "the most overlooked" part of a Chewy investment thesis is its very narrow and highly predictable revenue trajectory, which allows for better profitability within its core $7-8B autoship business. [read more]
• BofA resumed coverage of Rivian Automotive (RIVN) with a Buy rating and price target of $40, down from $50. The company’s Q4 results "were just ok" and its 2023 volume outlook of 50,000 was lighter than expected, the firm said. [read more]
• Oppenheimer initiated coverage of Pool Corp. (POOL) with an Outperform rating and $408 price target. Pool, as the leading wholesale distributor in an industry benefiting from migration to warmer climates, has a "compelling long-term growth story," along with attractive operating margins, the analyst tells investors. [read more]
• RBC Capital initiated coverage of Privia Health (PRVA) with an Outperform rating and $36 price target. The company’s "capital-light" physician-enablement model makes it "currently and comfortably" free cash flow positive and works with all types of providers and patient-types, which differs from others in the space, the firm noted. [read more]

For real-time alerts on the news moving stocks as it breaks, try The Fly at no charge for 14 days. Find all top-rated stocks by the best-rated analysts on TipRanks.