Birkenstock upgraded, Charter initiated: 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:

• UBS upgraded Birkenstock (BIRK) to Buy from Neutral with a price target of $85, up from $52. The company is successfully executing its direct-to-consumer expansion strategy better than expected, the firm tells investors in a research note.
• Goldman Sachs upgraded IntercontinentalExchange (ICE) to Buy from Neutral with a price target of $167, up from $143. After less than 10% earnings growth over the last three years, the firm sees the company’s earnings growth inflecting higher into low teens in 2025 and beyond, supported by structural tailwinds and ICE’s global leadership in energy markets, signs of accelerating growth in fixed income data and analytics, and a cyclical trough in mortgage technology.
• Piper Sandler upgraded Teleflex (TFX) to Overweight from Neutral with a price target of $245, up from $205. While it may take another quarter or two, Teleflex’s Urolift sales in the physician’s office will start to bottom, the firm tells investors in a research note.
• Wolfe Research upgraded Americold Realty Trust (COLD) to Outperform from Peer Perform with a $31 price target. The firm expects Americold to produce “outsized” growth from storage volume recoveries and development stabilizations while trading at a similar multiple to peers.
• JPMorgan upgraded Adecoagro (AGRO) to Neutral from Underweight with a price target of $11.50, up from $10.50. The firm thinks sugar and ethanol prices have limited downside risk from this point, while the weaker real, a good perspective for Argentine crops and a “reasonable” valuation make it more constructive about the investment case

Top 5 Downgrades:

• Piper Sandler downgraded Zimmer Biomet (ZBH) to Neutral from Overweight with a price target of $115, down from $140. The firm says a combination of factors, including a back half of 2024 ramp and minimal upside to fiscal 2025 hip and knee estimates “make the setup less attractive from here.”
• RBC Capital downgraded NextEra Energy Partners (NEP) to Sector Perform from Outperform with a price target of $30, down from $38. With insufficient growth from wind repowerings and about $3.7B CEPF liabilities post-2026, the firm believes the model will not be able to sustain long-term dividend growth of 5%-8% and that the company will need to evaluate a dividend cut.
• Truist downgraded ICF International (ICFI) to Hold from Buy with a price target of $155, down from $168. The firm now has less conviction in ICF’s high-single-digit organic growth in 2-3 years.
• William Blair downgraded Amedisys (AMED) to Market Perform from Outperform after the company agreed to divest certain home health locations to VitalCaring. The firm expected a divestiture of a number of Amedisys home health assets would be required to satisfy potential antitrust concerns associated with the company s proposed acquisition by UnitedHealth (UNH).
• Craig-Hallum downgraded Infinera (INFN) to Hold from Buy with a price target of $6.65, down from $12, after the company and Nokia (NOK) announced they had entered into a definitive agreement under which the latter will acquire Infinera for $6.65 per share in cash and/or stock.

Top 5 Initiations:

• Goldman Sachs initiated coverage of Charter (CHTR) with a Sell rating and $250 price target. The firm’s Sell rating reflects a more negative risk/reward on shares and areas where it sees downside fundamental risk. Goldman also started coverage of Altice USA (ATUS) with a Buy rating.
• Goldman Sachs initiated coverage of SBA Communications (SBAC) with a Neutral rating and $212 price target. The firm believes the market does not fully appreciate the sustainability of growth the company can deliver across the cycle, or the pace of potential cyclical recovery in fundamentals. Goldman also started coverage of Frontier Communications (FYBR), American Tower (AMT), Equinix (EQIX), Digital Realty (DLR), T-Mobile (TMUS), AT&T (T), and Verizon (VZ) with Buy ratings.
• Goldman Sachs initiated coverage of IHS Holding (IHS) with a Neutral rating and $3.50 price target. The firm initiated the U.S. telecom services and infrastructure sector and is most constructive on wireless carriers and datacenters. Goldman also started coverage of Crown Castle (CCI), and Cogent (CCOI) with Neutral ratings.
• Citi resumed coverage of Birkenstock with a Buy rating and $65 price target. The company’s recent secondary offering was for 14M shares with a green shoe of an additional 2.1M, all from L Catterton, which owned 81% of total shares before the offering and now holds 73%, the firm tells investors in a research note.
• JMP Securities initiated coverage of Gannett (GCI) with an Outperform rating and $6 price target. The firm’s positive view is based on the company’s “multiple catalysts” to accelerate digital revenue, expand margins, and de-lever its balance sheet, which it believes can drive multiple expansion toward its peer group average.