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:
- Morgan Stanley upgraded Arm (ACN) to Buy from Neutral with an unchanged price target of $400. The analyst sees opportunity for multiple expansion as the market anticipates accelerating revenue growth amid artificial intelligence optionality.
- Citi upgraded Owens & Minor (OMI) to Buy from Neutral with a price target of $19, down from $24. The analyst says the 40% selloff since the company’s Q1 earnings report “has been too punitive.”
- UBS upgraded Wolverine World Wide (WWW) to Buy from Neutral with a price target of $20, up from $13. The analyst has increased conviction Wolverine’s sales growth rate should accelerate, saying the company has streamlined its portfolio and reallocated more resources into its active segment.
- JPMorgan upgraded AnaptysBio (ANAB) to Overweight from Neutral with a price target of $69, up from $29. The firm sees key catalysts in the next 12 months as potentially significant value drivers for the shares, in particular, for Phase 2b readouts of ANB032 in atopic dermatitis and rosnilimab in rheumatoid arthritis.
Top 5 Downgrades:
- RBC Capital downgraded Sealed Air (SEE) to Sector Perform from Outperform with a price target of $40, down from $43. The firm commends the company and its board for halting volume loss and hiring a new outside CEO, but continues to project soft volumes, flat to negative price/cost, and high leverage.
- Baird downgraded Cintas (CTAS) to Neutral from Outperform with a price target of $775, up from $750. The analyst cites valuation for the downgrade, noting the shares shares trade at a record high price-to-earnings multiple.
- JPMorgan downgraded Choice Hotels (CHH) to Underweight from Neutral with an unchanged price target of $120. The analyst views the stock’s valuation versus Wyndham Hotels (WH) as full following the recent rally.
- DZ Bank downgraded PepsiCo (PEP) to Hold from Buy with an $183 price target.
- Janney Montgomery Scott downgraded Banner Corp. (BANR) to Neutral from Buy with a fair value estimate of $60, up from $53. The stock price appreciated nearly 40% since last reporting earnings in April and the firm believes the current valuation reflects the company’s prevailing level of profitability, but it argues that future earnings growth might not materially outperform current trends due to a variety of factors.
Top 5 Initiations:
- Wedbush initiated coverage of Columbia Sportswear (COLM) with a Neutral rating and $80 price target. The firm believes the core Columbia business is a “solid brand” in the sub-industry of outdoor/active, but acknowledges that near-trend macro trends are challenging, that the company’s guidance already implies a healthy second half reacceleration, and argues that the stock’s valuation “doesn’t provide much of a re-rating opportunity.”
- Raymond James last night initiated coverage of Sonoco Products (SON) with an Outperform rating and $62 price target. The analyst expects the Eviosys acquisition to be accretive to both earnings and cash flow, with upside from the potential $1B in divestitures “accelerating the deleveraging story.”
- UBS resumed coverage of Consolidated Edison (ED) with a Neutral rating with a price target of $96, up from $92. The stock looks fairly valued at a 5% premium on the firm’s $5.89 2026 EPS which is in line with consensus, the analyst tells investors in a research note.
- Citi resumed coverage of California Resources (CRC) with a Buy rating and $63 price target. The analyst views the company as well positioned given “line-of-sight” into stabilizing oil production next year, its leading position in carbon capture in California and optionality presented by its Elk Hills power plant as data center demand ramps.
- Craig-Hallum initiated coverage of Life Time Group (LTH) with a Buy rating and $30 price target. Pickleball is the fastest growing sport in the country and Life Time has the most courts, notes the analyst, who also says the companies pivot to a higher-end model has been “very successful.” Strong checks and insider buying “suggest now is the time to invest,” adds the analyst, who views Life Time Fitness as “poised for many years of durable sales and EBITDA growth.”