UPS upgraded, Nike 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:

• Baird upgraded UPS (UPS) to Outperform from Neutral with a price target of $170, up from $165. While transportation trends will likely remain challenging through the first half of 2024, “we are slowly exiting the trough of this cycle,” the analyst tells investors in a research note.
• Keefe Bruyette upgraded Coinbase (COIN) to Market Perform from Underperform with a price target of $160, up from $93, post the Q4 report. The company reported a solid revenue beat on retail engagement ultimately being much stronger than expected towards year-end, the analyst tells investors in a research note.
• Raymond James double upgraded Wayfair (W) to Strong Buy from Market Perform with a $65 price target. The upgrade is not opinion is not a call directly on the upcoming Q4 results, but rather that after a challenging period for the U.S furniture industry following COVID, demand trends are nearing the bottom, with adjusted U.S. furniture sales likely near 2015/2016 levels in 2023, the firm writes.
• Morgan Stanley upgraded Qiagen (QGEN) to Overweight from Equal Weight with a price target of $51, up from $49.48. Shares declined about 17% in 2023, driven by mainly multiple contraction, notes the analyst, who believes the performance gap with peers should start to narrow as earnings visibility improves over the year.
• Scotiabank upgraded Epam Systems (EPAM) to Outperform from Sector Perform with a price target of $350, up from $265. Epam reported a strong beat in Q4, with adjusted EPS significantly above the firm’s and Street estimates, driven by the ongoing cost optimization program undertaken by the company to rightsize operations, the analyst tells investors.

Top 5 Downgrades:

• Oppenheimer downgraded Nike (NKE) to Perform from Outperform with a price target of $110, down from $150. The firm says that while longer-term prospects for Nike and the company’s equity remain compelling, it is increasingly concerned that over the next several quarters, sales trends at the enterprise are likely to remain sluggish and below algorithm.
• Raymond James downgraded Carvana (CVNA) to Underperform from Market Perform without a price target. The downgrade is not a call on upcoming Q4 results as industry trends suggest stable market conditions, but on the recent stock performance, the analyst tells investors in a research note.
• UBS downgraded Newell Brands (NWL) to Neutral from Buy with a price target of $8.50, down from $10, implying 6% upside from current levels. The analyst had expected greater progress at this stage on CEO Chris Peterson’s turnaround strategy.
• JPMorgan downgraded Dropbox (DBX) to Neutral from Overweight with a price target of $30, down from $33, following the Q4 report. The analyst believes risk/reward is now more balanced with the shares up 72% in the past 11 months.
• Oppenheimer downgraded Roku (ROKU) to Perform from Outperform without a price target. The firm sees the stock range-bound until Roku sustainably delivers high-teens Platform revenue growth.

Top 5 Initiations:

• Loop Capital initiated coverage of Nvidia (NVDA) with a Buy rating and $1,200 price target, which is a high on the Street. The firm says the company is at the front end of a 3-5 year graphics processing unit compute and generative artificial intelligence foundational build across hyperscale.
• Wells Fargo initiated coverage of Supermicro (SMCI) with an Equal Weight rating and $960 price target. The analyst is positive on Supermicro’s position to continue to capitalize on artificial intelligence infrastructure buildouts, but sees the shares as already reflecting $40 per share earnings upside by 2025.
• RBC Capital initiated coverage of Biohaven (BHVN) with an Outperform rating and $62 price target. The firm is positive on the way the company identifies promising technologies and targets and then leverages its management expertise to optimize the development path based on competitor data to become a fast-follower in high-value therapeutic areas, the analyst tells investors in a research note.
• Evercore ISI initiated coverage of Rapt Therapeutics (RAPT) with an Outperform rating and no price target. The company is reporting a high profile Phase 2b in atopic detritus with an oral drug in mid-2024 and the firm believes Rapt has a “real chance” at demonstrating an efficacy significance.
• Piper Sandler initiated coverage of AnaptysBio (ANAB) with an Overweight rating and $80 price target. AnaptysBio is a clinical stage biotech company entering a “catalyst rich” 2024 and 2025 with four assets in development and two partnered with GSK (GSK), “providing it with an influx of cash to support operations,” the analyst tells investors in a research note.