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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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Goldman Sachs upgraded Ulta Beauty (ULTA) to Buy from Neutral with a price target of $423, up from $384. The firm believes the bottom has likely been reached in regard to concerns with prestige and mass beauty industry growth.
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Goldman Sachs upgraded AutoZone (AZO) to Neutral from Sell with a price target of $3,811, up from $3,044. The firm cites the attractiveness of the company's "defensive business" in the current macro environment for the upgrade.
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Loop Capital upgraded Shake Shack (SHAK) to Buy from Hold with an unchanged $127 price target. The firm maintains its view that there is the potential for 10% or more upside to the management's guidance for adjusted EBITDA of $200M-$210M in 2025 in the event comparable sales continue to beat expectations over the course of the current year.
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Morgan Stanley upgraded Keurig Dr Pepper (KDP) to Overweight from Equal Weight with a price target of $40, up from $38. The firm, which thinks the market is not recognizing the company's building organic sales and EPS growth prospects compared to consumer-packaged goods peers, cites highly visible strength in its U.S. refreshment segment and continued solid international results despite short-term coffee profit risk.
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TD Cowen upgraded Enova International (ENVA) to Buy from Hold with a price target of $117, down from $130. The company is still seeing "very strong growth currently" in both its consumer and small business lending given a favorable competitive environment, despite the recent increase in macro volatility, the firm tells investors in a research note.
Top 5 Downgrades:
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Melius Research downgraded Kroger (KR) to Sell from Hold with a $58 price target, citing the fact that Walmart (WMT) is gaining share across most categories due to the latter's "significant" price gaps to conventional operators, "significantly improved" service levels and fresh offerings and its "clear advantage on digital."
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Jefferies downgraded Southwest (LUV) to Underperform from Hold with a price target of $28, down from $30, as the firm lowered Q1 and Q2 estimates. The firm sees March exit rates pressuring summer as corporate and consumer sentiment are seen remaining soft on "swelling macro uncertainty." Jefferies also downgraded Delta Air Lines (DAL) and American Airlines (AAL) to Hold.
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Monness Crespi downgraded Strategy (MSTR) to Sell from Neutral with a $220 price target. The firm argues that the lower-than-expected absorption of preferreds "highlights limits" to the company's bitcoin treasury aspirations and adds that it has gained "incremental confidence that the convertible issuance strategy is likely tapped."
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Goldman Sachs downgraded Genuine Parts (GPC) to Sell from Neutral with a price target of $114, down from $133. The downgrade reflects the view that the company is positioned "less defensively" in the current environment relative to peers due to recent underperformance at Genuine Parts' NAPA business, slowing trends at its European Automotive business, and concerns that its Industrial segment could be exposed to an uncertain macro environment, the firm tells investors in a research note
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Roth MKM downgraded Beachbody Company (BODI) to Neutral from Buy with a price target of $7, down from $12. The company's transition to an affiliate model may prove to be fruitful, but this will take time and the firm's checks thus far are mixed, the firm tells investors in a research note.