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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:
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Citi upgraded Carvana (CVNA) to Buy from Neutral with a price target of $277, up from $195. The firm cites improving new vehicle supply unlocking used demand and says Carvana inventory is expanding to meet demand.
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Piper Sandler upgraded Autodesk (ADSK) to Overweight from Neutral with a price target of $357, up from $311. While the "efficiency narrative" has been building since mid-last year, the post-Q3 pullback in the shares has created an attractive entry point for a stock "that felt a little crowded on the long side" for much of the last six months, the firm tells investors in a research note.
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Mizuho upgraded Twilio (TWLO) to Outperform from Neutral with a price target of $140, up from $85, ahead of the company's January 23 investor day. The firm expects "meaningful" sales stabilization and improved revenue visibility for Twilio, and sees opportunity for acceleration to double-digit growth in 2025 and beyond.
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TD Cowen upgraded Coca-Cola (KO) to Buy from Hold with an unchanged price target of $75. Coke continues to execute "at the top of its game" through successful refranchising internationally and outstanding execution domestically, argues the firm, which views the stock's recent pullback as an "overreaction to transitory volume deceleration" and "nebulous concerns" about the impact of new U.S. trade policies on forex and Coke's emerging markets.
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Wolfe Research upgraded UPS (UPS) to Outperform from Peer Perform with a $147 price target. The stock has materially lagged FedEx (FDX), the broader Transport Index and the S&P 500 over the past two and a half years as U.S. package margins have declined materially, but the firm expects U.S. margins to inflect positive year-over-year in calendar 2025, which "historically leads to much better performance for the stock."
Top 5 Downgrades:
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HSBC downgraded AMD (AMD) to Reduce from Buy with a price target of $110, down from $200. AMD shares price have corrected by 24% in the past three months but there remains further downside as the firm now believes the company's artificial intelligence graphics processing unit roadmap is less competitive than previously thought.
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TD Cowen downgraded Leidos (LDOS) to Hold from Buy with a price target of $165, down from $200. The company faces a transition in 2025 following 2024's "explosive growth," which limits the stock's upward re-rating prospects, the firm tells investors in a research note.
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BTIG downgraded Palo Alto Networks (PANW) to Neutral from Buy without a price target. After reviewing Palo Alto's share in its core network security target market and the drivers within its higher growth next-generation security platform business, the firm no longer thinks the company is a sustainable 15%-plus growth story. Deutsche Bank also downgraded Palo Alto Networks to Hold from Buy with a price target of $190, down from $207.
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Deutsche Bank downgraded Adobe (ADBE) to Hold from Buy with a price target of $475, down from $600. The firm believes Adobe will continue to build traction with Firefly and other generative artificial intelligence offerings, but expects the stock to remain range-bound until that momentum positively inflects in the financials.
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Truist downgraded Merck (MRK) to Hold from Buy with a price target of $110, down from $130. The firm warns that a major upcoming loss of exclusivity and Gardasil headwinds are seen carrying over from 2024, and while the company should navigate through the environment, it will take time to reflect in growth.