Carvana upgraded, Block 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:

• JPMorgan upgraded Carvana (CVNA) to Overweight from Neutral with a price target of $130, up from $70, following the Q1 beat. The company reported another strong print with above seasonal unit growth and further improvement in unit economics, the firm tells investors in a research note.
• Susquehanna upgraded MGM Resorts (MGM) to Positive from Neutral with a price target of $54, up from $46. MGM’s Q1 print was “a modest beat,” but what stood out for the firm and lead to its upgrade was its management call, where “there seemed to be a much better focus on the outlook,” the firm tells investors.
• Jefferies upgraded Trade Desk (TTD) to Buy from Hold with a price target of $105, up from $95. The firm expects positive estimate revisions from the accelerated shift to programmatic connected TV.
• UBS upgraded TJX (TJX) to Buy from Neutral with a price target of $132, up from $104. The firm believes off-price retailers like TJX will take more share from department stores than previously though. UBS also upgraded Burlington Stores (BURL) to Neutral from Sell with a price target of $212, up from $126.
• Keefe Bruyette upgraded Synchrony (SYF) to Outperform from Market Perform with a price target of $62, up from $45. The firm believes much of the uncertainty related to the late fee regulation is diminishing along with recent positive developments on the court front for private label issuers.

Top 5 Downgrades:

• Monness Crespi downgraded Block (SQ) to Neutral from Buy and removed its prior price target, stating that the firm is taking profits given that the uncertainty of an investigation is lingering.
• Loop Capital downgraded Etsy (ETSY) to Hold from Buy with a price target of $50, down from $70, after its Q1 earnings miss. Etsy’s Gross Merchandise Sales, or GMS, is still declining without a visible catalyst to reverse the trend, while its top-line growth has been decelerating for five consecutive quarters, the firm tells investors in a research note.
• UBS downgraded CVS Health (CVS) to Neutral from Buy with a price target of $60, down from $85. The firm has limited visibility into the “necessary improvements needed” in CVS’s Medicare Advantage cost trend and other segments of the business that shape the current guidance.
• Baird downgraded Freshworks (FRSH) to Neutral from Outperform with a price target of $16, down from $28. The company reported a solid Q1, with a revenue beat and better profitability, but the fiscal 2024 guidance was reduced, and the company announced a CEO transition, the firm tells investors in a research note. Oppenheimer also downgraded Freshworks to Perform from Outperform.
• BofA downgraded Fastly (FSLY) to Underperform from Buy with a price target of $8, down from $18, as the firm argues that near-term risks outweigh the longer-term positive catalysts it sees. DA Davidson also downgraded Fastly to Neutral from Buy with a price target of $8.50, down from $24.

Top 5 Initiations:

• Cantor Fitzgerald initiated coverage of Tesla (TSLA) with an Overweight rating and $230 price target. Tesla benefits from future upside from its Full Self-Driving software, the introduction of lower-priced models, a global manufacturing footprint with economies of scale, and the industry’s largest Charging Infrastructure, the firm tells investors in a research note.
• Exane BNP Paribas initiated coverage of Meta Platforms (META) with an Underperform rating and $360 price target. The company’s artificial intelligence spending is set to spike without new revenue streams to match, the firm tells investors in a research note.
• Exane BNP Paribas initiated coverage of IBM (IBM) with an Underperform rating and $145 price target. The firm says spend intentions are deteriorating for IBM and for containers.
• H.C. Wainwright initiated coverage of Sagimet Biosciences (SGMT) with a Buy rating and $32 price target. The firm believes Denifanstat has the potential to emerge as a backbone therapy for metabolic dysfunction-associated steatohepatitis.
• Baird initiated coverage of Spyre Therapeutics (SYRE) with an Outperform rating and $50 price target. The firm believes Spyre’s pipeline of half-life extended antibodies “could disrupt” the inflammatory bowel disease, or IBD, market, with a potential best-in-class subcutaneous dosing interval.