Ulta upgraded, Skyworks downgraded: Wall Street’s top analyst calls

The most talked about and market moving research calls around Wall Street are now in one place. Here are today’s research calls that investors need to know, as compiled by The Fly.

Top 5 Upgrades:

• Loop Capital upgraded Ulta Beauty (ULTA) to Buy from Hold with an unchanged price target of $540, implying 21% upside from current levels. The firm believes last week’s selloff was “well overdone,” especially given the “extremely difficult” comparison Ulta is facing in Q1.
• JPMorgan upgraded GE Vernova (GEV) to Overweight from Neutral with an unchanged price target of $141. With the stock now trading at a discount to its price target, the firm sees an entry point for a “long-term core holding” for investors in the global electrification theme.
• Citi upgraded Take-Two Interactive (TTWO) to Buy from Neutral with a price target of $200, up from $170. The firm believes the timing of GTA VI’s release “is a very real but a manageable risk.”
• Cantor Fitzgerald upgraded Applied Materials (AMAT) to Overweight from Neutral with a price target of $260, up from $220. The firm also added Applied Materials to its Top Picks, saying it expects positive spending reads from TSMC’s (TSM) CapEx and ASML (ASML) orders to be a rising tide for Semiconductor Process Equipment.
• Wolfe Research upgraded Zebra Technologies (ZBRA) to Outperform from Peer Perform with a $337 price target. The firm sees potential upside to the company’s revenue growth guidance for the year and believes the stock could see multiple expansion over the next 12-18 months as growth accelerates.

Top 5 Downgrades:

• KeyBanc downgraded Skyworks Solutions (SWKS) to Sector Weight from Overweight without a price target. The firm believes the company’s ability to drive content growth given maturity in the smartphone market is increasingly becoming more challenging.
• Exane BNP Paribas downgraded Kroger (KR) to Underperform from Neutral with a $48 price target. After a period of strong earnings growth, the outlook for U.S. grocery is “tougher,” the firm tells investors in a research note.
• Bernstein downgraded Amer Sports (AS) to Market Perform from Outperform. The impending ban on per- and polyfluoroalkyl substances in the apparel sector raises concerns about the financial implications for companies like Amer Sports, the firm tells investors in a research note.
• Cantor Fitzgerald downgraded GlobalFoundries (GFS) to Neutral from Overweight with a price target of $55, down from $70. Cantor still believes GlobalFoundries could be an attractive strategic fit for Intel (INTC) or Samsung (SSNLF), but Intel’s recent tie-up with UMC has reduced the probability of such an event, the firm tells investors in a research note.
• Needham downgraded ShockWave Medical (SWAV) to Hold from Buy following the recently announced agreement for an acquisition of the company by Johnson & Johnson (JNJ). Morgan Stanley and Deutsche Bank also downgraded ShockWave Medical to Neutral-equivalent ratings.

Top 5 Initiations:

• Deutsche Bank reinstated coverage of Broadcom (AVGO) with a Buy rating and $1,500 price target. The firm continues to see three positive drivers to the shares, namely artificial intelligence catalysts, accretion potential presented by the recently acquired VMware, and an eventual rebound in the company’s “already de-risked” cyclically levered segments.
• William Blair initiated coverage of Pinstripes (PNST) with an Outperform rating. The firm expects Pinstripes to nearly double in locations over the next two years, with a corresponding near-doubling of revenue.
• Citi resumed coverage of SoFi Technologies (SOFI) with a Buy rating and $11 price target. The firm says its fundamental bullish view on SoFi remains unchanged as its intended business diversification comes into focus, its ability to continue to attract deposits continues to prove itself out and investors focus on forward profitability.
• Jefferies initiated coverage of Norfolk Southern (NSC) and Canadian Pacific Kansas City (CP) with Buy ratings and price targets of $300 and $105, respectively. The firm prefers shares of Canadian Pacific Kansas City and Norfolk Southern for the former’s “idiosyncratic growth” and the latter’s margin story.
• Jefferies initiated coverage of Union Pacific (UNP) and CSX (CSX) with Hold ratings and price targets of $250 and $40, respectively, as valuations in the group look full.