Ibotta initiated, Cisco upgraded: Wall Street's top analyst calls
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:
Exane BNP Paribas upgraded Cisco (CSCO) to Neutral from Underperform with a $50 price target. The firm says consensus estimate risk is now small following the closing of Splunk deal.
Wells Fargo upgraded Nexstar (NXST) to Overweight from Equal Weight with a price target of $221, up from $190. Nexstar's financial performance gives the firm increased confidence in equity returns.
Redburn Atlantic upgraded MSCI (MSCI) to Neutral from Sell with a $485 price target. The firm remains of the view that MSCI is in a period of slower growth, but it sees "several levers at management's disposal" to offset near term earnings pressure while the stock's valuation "now screens as fairer versus peers."
BofA upgraded Red Rock Resorts (RRR) to Neutral from Underperform with a price target of $55, down from $57. The firm sees risk-reward as more balanced in Red Rock shares with the recent pullback, and while Boyd's (BYD) commentary on core Locals softness is alarming, it doesn't sound like Red Rock is experiencing softness in their sub-markets and thinks Durango can offset core softness.
Benchmark upgraded BioLife Solutions (BLFS) to Buy from Hold with a $25 price target, citing the improved revenue and earnings metrics the company reported following the successful sale of the CGI business.
Top 5 Downgrades:
Jefferies downgraded Texas Instruments (TXN) to Hold from Buy with a price target of $175, down from $200, as a different analyst assumed coverage of a number of U.S. semiconductor stocks. The firm has a bullish long-term view into a strong upcycle with duration.
Susquehanna downgraded SolarEdge (SEDG) to Neutral from Positive with a price target of $56, down from $92, post the Q1 report. The timing of a recovery "remains cloudy," the firm tells investors in a research note.
Baird downgraded Squarespace (SQSP) to Neutral from Outperform with a price target of $44, down from $45, after the company announced that it has entered into a definitive agreement to be taken private by Permira for $44.00 per share in cash.
BofA downgraded Penn Entertainment (PENN) to Neutral from Buy with a price target of $17.50, down from $28. The firm cut estimates following Penn's "disappointing" Q1 report saying ESPN Bet market share is below expectations and high fixed costs are driving elevated earnings risk for Q4 and 2025.
B. Riley downgraded Xponential Fitness (XPOF) to Neutral from Buy with a price target of $9, down from $31, after the company removed CEO Anthony Geisler from his duties and suspended him indefinitely as CEO.
Top 5 Initiations:
Needham initiated coverage of Ibotta (IBTA) with a Buy rating and $125 price target. The company offers a compelling combination of growth and profitability driven by its pivot from a DTC publisher of promotional content to consumers to a performance network that is integrated within third-party publishers, the firm tells investors in a research note. Wells Fargo, BofA, and Evercore ISI also started coverage of Ibotta with Buy-equivalent ratings.
HSBC initiated coverage of United Airlines (UAL) with a Buy rating and $69.20 price target. The firm expects United to take advantage of the new post- pandemic travel dynamics, addressing comfort and customer experience.
HSBC initiated coverage of American Airlines (AAL) with a Buy rating and $17.90 price target. While a stretched balance sheet and high debt have been concerns, American should generate healthy free cash flow, the firm tells investors in a research note.
HSBC initiated coverage of Delta Air Lines (DAL) with a Buy rating and $72.80 price target. The firm calls Delta its preferred play among the U.S. airlines, as it likes the company's "strong" network mix and competitive positioning at all of its key hubs, which it says offers a rich mix of traffic. HSBC also started coverage of Southwest (LUV) with a Hold rating and $27.80 price target.
Piper Sandler initiated coverage of MasterCard (MA) with an Overweight rating and $531 price target. The firm believes Mastercard should be able to deliver revenue growth of 11% this year and 13% in fiscal 2025, driven its "massive untapped opportunity" for consumer payments. Piper also started coverage of Visa (V) with an Overweight rating and $322 price target.
