Etsy, Enphase 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:

• Barclays upgraded Doximity (DOCS) to Overweight from Equal Weight with a price target of $52, up from $35. The firm believes the shares do not reflect the scale growth opportunity from the company’s expansion into self-service advertising sales.
• Craig-Hallum upgraded TechTarget (TTGT) to Buy from Hold with a price target of $36, up from $34. Shares have been under pressure across FY24, but the firm thinks it “gets better from here” as it believes the company’s impending merger with Informa Tech in on track and will close by year-end and believes trends have stabilized.
• Evercore ISI upgraded Bausch + Lomb (BLCO) to Outperform from In Line with a price target of $25, up from $19, after Financial Times reported that TPG (TPG) and Blackstone (BX) are working on a joint bid for B+L and that formal bids are expected as early as the end of the month.
• Barclays upgraded Revvity (RVTY) to Overweight from Equal Weight with a price target of $140, up from $125. The firm is more constructive on Revvity, saying the stock “checks most of the boxes” within its investment framework for how the tools and diagnostics space will unfold for the rest of the year and 2025.
• DA Davidson upgraded BOK Financial (BOKF) to Buy from Neutral with a price target of $124, up from $113. The bank is well positioned for lower rates, says the firm, which has a “stronger conviction” in its second half of 2024 and 2025 EPS estimates at the top-end of consensus.

Top 5 Downgrades:

• Goldman Sachs downgraded Etsy (ETSY) to Sell from Neutral with a price target of $45, down from $70. The firm continues to see risk to Street estimates given low visibility on gross merchandise sales, the potential for Etsy’s share losses to persist over time, and the risk of margin compression in 2025 versus the Street expecting margin expansion.
• RBC Capital downgraded Enphase Energy (ENPH) to Sector Perform from Outperform with a price target of $100, down from $125. The firm says competitive market dynamics will result in a slower pace of growth next year, which is not reflected in current consensus estimates.
• RBC Capital downgraded Mobileye (MBLY) to Sector Perform from Outperform with a price target of $11, down from $24. The firm cites uncertainty about Western manufacturing wins on the company’s premium products like SuperVision in the next 6-12 months for the downgrade.
• KeyBanc downgraded Lennox (LII) to Sector Weight from Overweight without a price target. The firm says the shares have exceeded its prior $600 price target, creating a more balanced risk/reward.
• Guggenheim downgraded Commvault (CVLT) to Neutral from Buy without a price target. The firm sees risk to the company’s fiscal Q2 total revenue and potentially profit too, in Commvault’s seasonally softest quarter.

Top 5 Initiations:

• Berenberg initiated coverage of Synopsys (SNPS) and Cadence Design (CDNS) with Buy ratings and $660 and $320 price targets, respectively. Synopsys and Cadence Design are the largest semiconductor design solutions providers in the world, with their businesses driven by semiconductor spending, which is “highly durable and seemingly not susceptible to industry downcycles,” contends Berenberg.
• Citi initiated coverage of Constellation Energy (CEG) with a Neutral rating and $284 price target. The firm has a “cautious view” of Constellation, saying behind-the-meter power deal execution may disappoint Street expectations and Crane will restart but on a delayed schedule.
• UBS initiated coverage of Heico (HEI) with a Neutral rating and $277 price target. The firm views Heico as a high-quality aftermarket name with a unique business model and bolt-on acquisition strategy, but notes consensus estimates appear properly calibrated.
• Barclays initiated coverage of Bruker (BRKR) with an Overweight rating and $75 price target. The company’s acquisitions over the past two years have reshaped the portfolio around a more multi-omics approach to research, the firm tells investors in a research note.
• Maxim initiated coverage of Ocugen (OCGN) with a Buy rating and $4 price target. The company’s modifier gene therapy platforms have the potential to be gene-agnostic, addressing populations in the tens of thousands to millions, rather than typical gene therapies in the hundreds to thousands, the firm says.