Snap upgraded, Apple downgraded: 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:

• HSBC double upgraded Snap (SNAP) to Buy from Reduce with a price target of $15.10, up from $10. The company reported a strong set of Q1 results, marked by return of double-digit growth, the analyst says.
• Barclays upgraded Enphase Energy (ENPH) to Overweight from Equal Weight with a $134 price target, up from $115. Current share levels provide a “reasonable entry point” as de-stocking will be completed by the end of Q2 and demand is set to increase from trough levels throughout 2024, the analyst tells investors in a research note.
• Raymond James upgraded Kratos Defense (KTOS) to Strong Buy from Outperform with a price target of $27, up from $20. Drones and air defense demand has accelerated with the ongoing and escalating conflicts globally, the analyst tells investors in a research note.
• JPMorgan upgraded Dow Inc. (DOW) to Overweight from Neutral with a price target of $61, up from $55. The analyst says Dow is capable of outperforming because it is a beneficiary of higher oil prices, it has a “durable” 5% dividend yield, its value is sensitive to acceleration in global economic activity, and its downside risk is “cushioned by the existence of global political tensions.”
• Benchmark upgraded Western Digital (WDC) to Buy from Hold with an $85 price target. Western Digital produced “major upside results” driven by improving flash pricing and nearline drive sales, notes the analyst, who sees continued improvements in NAND pricing and nearline sales as 2024 progresses.

Top 5 Downgrades:

• Erste Group downgraded Apple (AAPL) to Hold from Buy. Apple’s growth momentum continues to slow and the company’s new products do not currently have the potential to significantly improve sales momentum, the analyst tells investors in a research note.
• Morgan Stanley downgraded Mobileye (MBLY) to Underweight from Equal Weight with a price target of $25, down from $26. While the company’s leadership in computer vision creates option value for new content growth, a surprise slowdown in electric vehicle adoption limits its total addressable market through 2030 amid aggressive competition, the analyst tells investors in a research note.
• Erste Group downgraded AMD (AMD) to Hold from Buy. The valuation is “significantly higher than the P/E ratio of the peer group,” as well as compared to “much stronger competitor” Nvidia (NVDA), the analyst tells investors.
• JPMorgan downgraded Boyd Gaming (BYD) to Neutral from Overweight with a price target of $67, down from $80. The analyst says there is no way to sugarcoat Boyd’s Q1 earnings miss as it was “broad based and very surprising.”
• BofA downgraded Hertz (HTZ) to Underperform from Neutral with a price target of $3, down from $9, telling investors that the company’s Q1 results “well below” BofA and Street estimates failed to allay concerns about higher fleet costs that are unlikely to meaningfully subside in the near-term.

Top 5 Initiations:

• B. Riley initiated coverage of MacroGenics (MGNX) with a Buy rating and $25 price target. The analyst views the company’s most advanced candidate, vobra duo, as “significantly de-risked” in the ongoing over-enrolled Phase II TAMARACK registration-enabling study, the analyst tells investors in a research note.
• Scotiabank initiated coverage of Qualys (QLYS) with a Sector Perform rating and $172 price target. Qualys has “a rock-solid reputation in vulnerability management,” but “the firm needs more than one string to its bow,” the analyst tells investors.
• Ladenburg initiated coverage of Spire (SR) with a Neutral rating and $57.50 price target. The firm believes that Spire’s primary subsidiaries, Spire Alabama and Spire Missouri, are poised for continued growth due to favorable commissions and legislation.
• DA Davidson initiated coverage of Napco Security (NSSC) with a Buy rating and $52 price target. The firm says Napco has a “powerful recurring revenue flywheel” that was set in motion via its cellular connectivity radios.
• B. Riley resumed coverage of Full House Resorts (FLL) with a Buy rating and $9 price target. The analyst believes American Place’s March EBITDA was over $3M, a $36M run-rate versus last year’s $18.4M 11-month results.