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

Charles Schwab upgrade, Q2 Holdings downgrade, and SS&C 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:

• Credit Suisse upgraded Charles Schwab (SCHW) to Outperform from Neutral with a price target of $67.50, down from $81.50. The analyst sees "attractive upside" the firm’s revised sum-of-the-parts valuation of $67.50 per share. [read more]
• UBS upgraded Jack Henry (JKHY) to Buy from Neutral with an $184 price target. The recent selloff tied to fears of U.S. bank failure contagion are overblown despite Jack Henry’s direct exposure to financial institutions, the analyst tells investors in a research note. [read more]
• Citi upgraded Truist Financial (TFC) to Buy from Neutral with an unchanged price target of $52. The bear thesis is all about high held to maturity losses relative to the equity, but this "flawed," the analyst said. [read more]
• JPMorgan upgraded Baker Hughes (BKR) to Overweight from Neutral with a $32 price target. Despite the company’s leverage to liquified natural gas and the strength in upstream spending fundamentals, Baker shares have meaningfully lagged peers since the beginning of 2022, the firm said. [read more]
• Jefferies upgraded Harley-Davidson (HOG) to Hold from Underperform with an unchanged price target of $39. The analyst sees a more balanced risk/reward with the shares at the price target. [read more]

Top 5 Downgrades:

• Canaccord downgraded Q2 Holdings (QTWO) to Hold from Buy with a price target of $25, down from $60. Despite what the firm sees as an ongoing urgent need for technology investment by the banking sector, the regional banking sector could come under more pressure over the coming months following the collapses of Silicon Valley (SIVB) and Signature Bank (SBNY), the analyst tells investors. [read more]
• Oppenheimer downgraded Vacasa (VCSA) to Perform from Outperform without a price target. The firm cites elevated churn causing management to guide for declining 2023 revenue for the downgrade, the analyst said. [read more]
• SVB Securities downgraded Decibel Therapeutics (DBTX) to Market Perform from Outperform with a price target of $2, down from $7. The firm cites uncertainty for the partnering opportunity for DB-020 and broader concerns regarding cash burn and runway for the downgrade, [read more]
• Loop Capital downgraded Porch Group (PRCH) to Hold from Buy with a price target of $2, down from $4. The analyst cites the company’s "middling" Q4 results with a miss in earnings and revenue, though its adjusted EBITDA was "more or less in line." [read more]
• Piper Sandler downgraded Traeger (COOK) to Neutral from Overweight with a price target of $4, down from $6, ahead of the Q4 earnings report on Thursday. The firm says elevated grill inventory at retail likely creates a promotional environment in 2023. [read more]

Top 5 Initiations:

• JPMorgan initiated coverage of SS&C (SSNC) with an Overweight rating and $68 price target. The company has an "unexciting" organic growth profile, but it is highly cash generative and offers 5% shareholder remuneration, the analyst tells investors in a research note. [read more]
• Needham initiated coverage of ShockWave Medical (SWAV) with a Buy rating and $240 price target. ShockWave’s intravascular lithotripsy technology has democratized the treatment of calcified lesions and opened an $8.5B-plus market that is only 6% penetrated, the firm said. [read more]
• DA Davidson initiated coverage of Amplitude (AMPL) with a Neutral rating and $13 price target. The stock offers a "compelling" and "under-appreciated" way to invest in the Digital Transformation mega-trend, but  its neutral stance reflects the hesitation around the the potential for short-term disruption from the unwinding of Silicon Valley Bank. the analyst tells investors in a research note. [read more]
• Jefferies initiated coverage of Vitesse (VTS) with a Buy rating and $23 price target. The non-operated E&P operates like it is private, "scrutinizing every cost," with a commitment to returning the majority of its free cash flow to shareholders through a dividend and also has about a 35 year inventory life with low financial leverage, the firm said. [read more]
• UBS initiated coverage of Western Alliance (WAL) with a Buy rating and $85 price target. The firm thinks the market is "mispricing" the bank’s earning power as the current multiple implies about $4.00 of EPS in 2024 while the firm projects $10.93. [read more]

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