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.
