The latest buzz in Wall Street research seems to center around a few key companies. Here’s a rundown of today’s highlighted research calls that investors might want to pay attention to:
Top 5 Upgrades:
-
Baird has upgraded CVS Health (CVS) from neutral to outperform, raising its price target from $71 to $82. The company is showing growing confidence in its healthcare benefits segment following its recent Q2 report.
-
BofA has moved Sherwin Williams (SHW) from underperform to neutral, setting a price target between $296 and $375. Although same-store sales grew by just 0.8%, the results and guidance for the second quarter didn’t meet expectations, but BofA hasn’t identified factors that would significantly harm the stock going forward.
-
BTIG has upgraded Kratos Defense (KTO) to Buy from Neutral with a price target of $80. The company’s selection for the Marine Corps Mux Tacair program indicates strong potential for growth in unmanned systems, with an estimated request of $8.8 billion, which they anticipate will boost their performance next year.
-
BofA has upgraded Dow Inc. (DOW) to neutral from poor performance with a price target of $25. Previously downgraded in April due to concerns about revenue forecasts and dividend risks, the company has seen revised estimates that now reflect a changing market, thus allowing Dow to manage dividends more effectively.
-
BofA has also upgraded RPM (RPM), moving from underperformance to neutral with a price target of $110 to $128. After quarterly earnings exceeded expectations, fears of slowing macroeconomic conditions apparently didn’t play out as anticipated for the quarter ending May 31.
Top 5 Downgrades:
-
Argus has downgraded eBay (EBAY) from buy to hold, without a specific price target. Despite deploying new technologies, including AI enhancements, the stock has risen nearly 30% following a 7% increase in net profits and a 6% uptick in Q2 revenue.
-
ERSTE Group has downgraded IBM (IBM) from buy to retain. The company’s sales growth has been underwhelming compared to its sector, leading to a revised outlook perceived as disappointing.
-
BofA reduced Ibotta (IBTA) from neutral to underperform, with a price target slashed from $57 to $24. They reported significantly weaker-than-expected second-quarter results along with third-quarter revenue guidance. Some clients are pausing their engagement with the new performance marketing model amid industry challenges.
-
ERSTE Group has downgraded Fortinet (FTNT) from buy to hold, forecasting lower sales growth next year along with operating profit margins lagging behind peers.
-
BofA has downgraded Coherent (COHR) to neutral from buy, citing diminished growth in their data center business and a conservative trend in profit margins, despite previous restructuring efforts.
Starting Top 5:
-
ERSTE Group has resumed coverage on Micron (MU) with a purchase rating after favorable updates to Q4 guidance, which is seen as a positive development compared to earlier expectations.
-
ERSTE Group has also resumed coverage on Lamb Research (LRCX) with a buy rating, recognizing the company’s solid positioning within the semiconductor wafer manufacturing market.
-
UBS has initiated coverage on Sitime (SITM) with a purchase rating and a price target of $260, forecasting rapid growth stemming from advancements in artificial intelligence and new silicon-based solutions.
-
Piper Sandler analyst John Barnidge has a neutral rating on Lemonade (LMND) with a price target of $55, suggesting the company shows significant improvements from competitors in the direct consumer market for personal products.
-
Morgan Stanley has resumed coverage on Rocket Company (RKT) with an equal weight rating and a price target of $16, indicating less favorable risk/reward dynamics following a substantial 50% stock rally.
