Probably the most talked about and market shifting analysis calls round Wall Avenue are actually in a single place. Listed below are right this moment’s analysis calls that traders must know, as compiled by The Fly.
Prime 5 Upgrades:
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Mizuho upgraded PayPal (PYPL) to Purchase from Impartial with a worth goal of $90, up from $68. The agency’s evaluation of PayPal’s newly launched Fastlane product exhibits potential for $1.0B-$1.5B transaction margin greenback raise over the medium-term given the $1.43 trillion of annual e-commerce spend that’s addressable.
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BofA upgraded Datadog (DDOG) to Purchase from Impartial with a worth goal of $155, up from $143. The corporate is establishing itself because the “subsequent top quality massive cap inventory” in software program, the agency tells traders in a analysis observe.
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Evercore ISI upgraded Okta (OKTA) to Outperform from In Line with a worth goal of $122, up from $102. The corporate reported sturdy Q1 outcomes that exceeded tempered expectations, accompanied by a “far more upbeat tone,” suggesting that prior missteps and execution points are actually behind Okta, the agency tells traders in a analysis observe.
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Northland upgraded C3.ai (AI) to Outperform from Market Carry out with an unchanged worth goal of $35 following the fiscal This autumn report. C3.ai reported accelerating subscription progress of 41% in This autumn, offering proof that the headwinds from a migration to a usage-based income mannequin are abating, the agency tells traders in a analysis observe.
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Wells Fargo upgraded U.S. Mobile (USM) to Obese from Equal Weight with a worth goal of $75, up from $38. The agency says that U.S. Mobile’s wi-fi sale to T-Cell (TMUS) is simply step one of many it believes the corporate can take to unlock worth for shareholders.
Prime 5 Downgrades:
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Needham downgraded UiPath (PATH) to Maintain from Purchase with no worth goal, citing a mix of macro stress, uncertainty round near-term execution resulting from a CEO change and a altering go-to-market technique, and year-over-year margin compression creating an unfavorable near-term monetary profile for the downgrade. KeyBanc, William Blair, TD Cowen, Truist and BofA additionally downgraded UiPath to Impartial-equivalent rankings.
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Piper Sandler downgraded Cava Group (CAVA) to Impartial from Obese with a worth goal of $92, up from $63, following the corporate’s Q1 earnings outcomes. Piper’s up to date worth goal implies solely about 4% upside from present ranges, which leads the agency to view the risk-reward as extra balanced presently.
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Mizuho downgraded First Photo voltaic (FSLR) to Impartial from Purchase with a worth goal of $274, up from $209. The agency cites valuation for the downgrade.
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Guggenheim downgraded Generac (GNRC) to Promote from Impartial with a $120 worth goal. The agency believes an energetic hurricane season is “already within the numbers,” and says it’s exhausting to see upside potential to the present 2024 estimates.
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BofA downgraded FactSet (FDS) to Underperform from Impartial with a worth goal of $407, down from $500. The agency believes the corporate’s annual subscription worth and income “will stay caught in a multi-quarter rut” amid an unsure working setting and sluggish capital markets exercise.
Prime 5 Initiations:
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Goldman Sachs reinstated protection of Johnson & Johnson (JNJ) with a Impartial score and $160 worth goal. The agency expects J&J’s income and earnings progress over 2024 and 2025 more likely to stay tethered at comparatively modest low single-digit ranges because the portfolio navigates near-term headwinds from main product lack of exclusivities. Goldman additionally began protection of GSK (GSK), GE Healthcare (GEHC), Zimmer Biomet (ZBH), Baxter (BAX), and Stryker (SYK) with Impartial rankings.
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Goldman Sachs initiated protection of Intuitive Surgical (ISRG) with a Purchase score and $500 worth goal. There stays “ample room” for Intuitive to drive elevated penetration of robotic-assisted surgical procedure, enabled by its subsequent era product advances, the agency says. Goldman additionally began protection of Boston Scientific (BSX), Edwards Lifesciences (EW), Abbott (ABT), Becton Dickinson (BDX), AstraZeneca (AZN), Novartis (NVS), Novo Nordisk (NVO) with Purchase rankings.
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Goldman Sachs initiated protection of Medtronic (MDT) with a Promote score and $83 worth goal. Whereas the corporate is demonstrating consistency in its income progress, there may be draw back to Avenue earnings estimates because of the must reinvest within the enterprise to assist progress amid steady finish markets and comparatively aggressive trade dynamics, the agency argued. Goldman additionally began protection of Solventum (SOLV) with a Promote score.
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Redburn Atlantic initiated protection of DexCom (DXCM) with a Impartial score and $130 worth goal. The corporate’s core markets have develop into more and more penetrated, and its progress is now extra reliant on capturing share in new areas, the agency tells traders in a analysis observe.
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Redburn Atlantic initiated protection of Insulet (PODD) with a Purchase score and $235 worth goal. Insulet has disrupted the insulin supply market, and the corporate has sustained momentum as patch pumps proceed to transform customers to pump remedy, the agency tells traders in a analysis observe. Redburn additionally began protection of Tandem Diabetes (TNDM) with a Purchase score and $60 worth goal.
