UPS downgraded, Stryker upgraded: 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:

• Canaccord upgraded Stryker (SYK) to Buy from Hold with a price target of $360, up from $315, after the company delivered “a strong Q4 in the face of a tough Q4/22 comp.”
• William Blair upgraded Check Point Software Technologies (CHKP) to Outperform from Market Perform without a price target. The firm says the stock “can reach an inflection point in 2024 and has a significant valuation gap relative to competitors” such as Palo Alto Networks (PANW).
• KeyBanc upgraded Commvault Systems (CVLT) to Overweight from Sector Weight with a $109 price target. The company reported solid fiscal Q3 results, driven by stronger than expected subscription renewals, maintenance, and Metallic, the firm tells investors in a research note.
• UBS upgraded TechTarget (TTGT) to Buy from Neutral with a price target of $45, up from $31. After doing a deep dive into TechTarget’s proposed transaction with Informa Tech, the firm thinks the deal has the potential to create substantial value for TechTarget shareholders.
• Roth MKM upgraded Plug Power (PLUG) to Buy from Neutral with a price target of $9, up from $4.50. The firm cited the recent visit to the Georgia green hydrogen plant providing confidence that the facility is ramping smoothly and that all major technical issues are handled, addressing the firm’s prior concerns about backlog and margin visibility.

Top 5 Downgrades:

• Argus downgraded UPS (UPS) to Hold from Buy after its Q4 results and below-consensus guidance. The company appears well positioned to benefit from a number of positive trends, including the continued growth of e-commerce, but recent results have disappointed at both the top and bottom lines, and the outlook for earnings and dividend growth over the next few quarters is “tepid at best,” the firm argues.
• Barclays downgraded Verizon Communications (VZ) to Equal Weight from Overweight with an unchanged price target of $44. Verizon is on a much better operational trajectory than has been the case over the last couple of years, but upside to numbers and valuation may be more limited from present levels, the firm believes.
• Baird downgraded Vertex Pharmaceuticals (VRTX) to Underperform from Neutral with an unchanged price target of $325. The firm sees “irrational exuberance” for VX-548. Maxim also downgraded Vertex Pharmaceuticals to Hold from Buy and removed the firm’s prior price target on the shares as it now expresses less confidence in VX-548’s blockbuster opportunity based on the Phase 3 outcomes.
• Morgan Stanley downgraded SoFi Technologies (SOFI) to Underweight from Equal Weight with a price target of $6.50, down from $7. The company’s “new medium-term targets are now out in the open, but may be optimistic,” the firm says.
• BMO Capital downgraded Fortune Brands Innovations (FBIN) to Market Perform from Outperform with a price target of $82, up from $76. The firm likes Fortune’s medium-term growth and margin expansion opportunity in decking and connected products, but with repair and remodeling demand still under pressure and the stock’s risk/reward more balanced at current levels, BMO is moving to the sidelines.

Top 5 Initiations:

• RBC Capital initiated coverage of Toast (TOST) with a Sector Perform rating and $19 price target. The firm believes the company is “uniquely positioned” to penetrate the large restaurant technology and payments total addressable market, but notes the shares trade at a premium to the peer group, with Toast needing to demonstrate an ability to reaccelerate revenue growth to meaningfully expand its multiple from current levels.
• MO Capital initiated coverage of Sarepta Therapeutics (SRPT) with an Outperform rating and $170 price target. The firm expects Elevidys quarterly sales to drive the Sarepta story in 2024.
• BMO Capital initiated coverage of BridgeBio (BBIO) with a Market Perform rating and $37 price target. The firm says Acoramidis and Infigratinib have strong potential, but that success is largely priced in given the over 300% year-over-year rally in the shares.
• BMO Capital initiated coverage of Silence Therapeutics (SLN) with an Outperform rating and $67 price target. The firm notes the company’s zerlasiran demonstrated up to 100% Lp(a) reduction in clinic, a target that is linked to cardiovascular risk.
• Evercore ISI initiated coverage of Dianthus (DNTH) with an Outperform rating and $50 price target. Lead drug DNTH103 is an upstream complement pathway inhibitor for neuromuscular diseases, aiming to improve on the convenience, safety, and “maybe even efficacy” of downstream complement pathway drugs, says the firm, which notes that its price target implies greater than 150% upside from the current share price.