In This Article:
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.
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Top 5 Upgrades:
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BofA upgraded Check Point (CHKP) to Buy from Neutral with a price target of $260, up from $230. The firm believes new CEO Nadav Zafrir is taking steps to “fundamentally change the outlook,” citing two factors for its upgrade, namely “encouraging” signs of new go-to-market and product initiatives as well as the background and pedigree of Zafrir
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RBC Capital upgraded Northrop Grumman (NOC) to Outperform from Sector Perform with a price target of $575, up from $500. The firm believes the positive shift in Northrop sentiment has “significant room to run” as the company is well positioned relative to shifting Department of Defense priorities, execution on the B-21 remains strong, which could support an improved funding outlook, and the perception of the company relative to defense peers has improved.
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Wolfe Research upgraded Equinix (EQIX) to Outperform from Peer Perform with a $978 price target. Reduced job/GDP growth estimates may place many REITs at risks, but Equinix’s strong balance sheet, low dividend payout, and large cash balance offer relative support in a downturn, the firm says.
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Goldman Sachs upgraded Par Pacific (PARR) to Buy from Neutral with a price target of $19, up from $18, implying 34% upside. The firm sees a “compelling risk/reward set-up” at current share levels.
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Morgan Stanley upgraded Liberty Energy (LBRT) to Overweight from Equal Weight with a price target of $25, up from $20. Against a muted macro backdrop for North American shale completions markets, the firm favors “premium players” like Liberty.
Top 5 Downgrades:
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Jefferies downgraded AMD (AMD) to Hold from Buy with a price target of $120, down from $135. The firm cites the company’s “limited traction” in artificial intelligence, its belief Street estimates are too high, and expectations of mounting competition from Intel (INTC) for the downgrade.
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RBC Capital downgraded Lockheed Martin (LMT) to Sector Perform from Outperform with a price target of $480, down from $550. The firm believes the F-35 faces greater headline risk for international sales and increased U.S. budget pressure.
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Argus downgraded McCormick (MCK) to Hold from Buy. The company’s Flavor Solutions segment is expected to be hurt by weak foot traffic at some restaurants in the EMEA and U.S segments, while cost headwinds in the form of higher input prices and management’s plans to increase brand marketing spending at a high-single pace are likely to limit earnings growth in 2025 and beyond, the firm tells investors in a research note.
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JPMorgan downgraded TrueCar (TRUE) to Underweight from Neutral without a price target. The implementation of 25% tariffs on all imported automobiles, in addition to imported parts over time, is “unequivocally negative” for the auto retail ecosystem in the near- and medium-term, the firm tells investors in a research note. JPMorgan also downgraded CarGurus (CARG) and Openlane (KAR) to Neutral from Overweight.
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Wells Fargo downgraded Omega Healthcare (OHI) to Equal Weight from Overweight with a price target of $39, down from $41. While the market certainly has already priced in some of the risk, the firm is moving to the sidelines as its base case of cuts includes reducing provider taxes.