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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Stephens upgraded Oracle (ORCL) to Overweight from Equal Weight with a price target of $213, up from $185. The firm says the company's investor day resolved its biggest questions, with Oracle pointing to lower cloud infrastructure funding and higher free cash flow.
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Phillip Securities upgraded Amazon.com (AMZN) to Buy from Accumulate with a price target of $330, up from $320, following the Q3 report. The firm says Amazon's "strong" demand visibility supports its "aggressive" capital expenditures.
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Deutsche Bank upgraded CrowdStrike (CRWD) to Buy from Hold with a price target of $300, up from $240. The market has still not appreciated the extent to which AI will expand the market for cybersecurity, the firm tells investors in a research note.
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Evercore ISI upgraded Clorox (CLX) to In Line from Underperform with a $99 price target ahead of the company reporting after the close. The firm, whose estimates are largely at consensus, believes Clorox shares appropriately discount the risk of an earnings reset, while adding that the appointment of Fabian Garcia as CEO brings "proven turnaround experience."
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Northland upgraded both Applied Optoelectronics (AAOI) and Coherent (COHR) to Outperform and maintain the firm's respective price targets of $120 and $280. Along with steep pullbacks in the shares, the firm says Marvell Technology's (MRVL) agreement to acquire Lumentum (LITE) highlights the value of scarce Photonic device capability for large AI chip suppliers alongside compute and networking ICs.
Top 5 Downgrades:
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Evercore ISI downgraded Reddit (RDDT) to In Line from Outperform with a price target of $120, down from $265, and has also removed its tactical outperform call on Reddit. The company reported "beat-and-lower" Q3 results, the firm notes, adding that it is "incrementally more concerned" about Reddit's user durability, with U.S. daily active users dropping 2% year-over-year and the company warning that global daily active users could fall by a low-double-digit percentage in Q4 from 130M if search referral losses continue at October's pace.
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Morgan Stanley downgraded Coinbase (COIN) to Underweight from Equal Weight with a price target of $120, down from $258. The firm says confidence in Coinbase's earnings recovery has deteriorated.
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Truist downgraded Alnylam (ALNY) to Hold from Buy with a price target of $225, down from $315. Following the Q3 report, the outlook for Amvuttra "has become meaningfully less certain," the firm tells investors in a research note.
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Goldman Sachs downgraded Floor & Decor (FND) to Sell from Neutral with a price target of $38, down from $53, following the Q3 report. The firm cites the company's decelerating quarter-to-date comps, macro-driven sales headwinds, and Q4 gross margin pressures from escalating supply chain costs for the downgrade.
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Morgan Stanley downgraded Camtek (CAMT) to Underweight from Equal Weight with a price target of $126, down from $152. The company can approach its mid-term financial model by 2029, but much of this upside is already priced into the shares, the firm says.
Top 5 Initiations:
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Morgan Stanley resumed coverage of L3Harris Technologies (LHX) with an Overweight rating and $402 price target. The firm says the company's Q3 reported strong backlog coverage and successful operational initiatives with further room to push margins higher.
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BTIG initiated coverage of SharkNinja (SN) with a Buy rating and $245 price target. The firm, which views SharkNinja as "one of the most dynamic and innovative growth companies in global consumer products," believes the company can sustain 10%-15% annual revenue growth over the next three to five years while expanding both operating and adjusted EBITDA margins.
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H.C. Wainwright initiated coverage of Teva (TEVA) with a Buy rating and $52 price target. The firm believes Teva can continue to drive revenue growth from Austedo above Street expectations.
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StoneX initiated coverage of GameStop (GME) with a Buy rating and $33 price target. Ryan Cohen has rebuilt the earnings base, collectibles offer a path to sustained growth and strong cash generation supports expansion, says the firm, which believes "GameStop's transformation is hiding in plain sight, with its meme-stock heritage overshadowing Ryan Cohen's operating achievements and the company's scale, growth and earnings potential."
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Rothschild & Co Redburn initiated coverage of Figma (FIG) with a Neutral rating and $23 price target. The firm sees a high degree of uncertainty on how digital design workflows will be executed in the long term.
