Five Below downgraded, Snowflake upgraded: 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:

• Monness Crespi upgraded Snowflake (SNOW) to Buy from Neutral with a $140 price target ahead of the company’s Q3 report due on November 20. Following a 41% year-to-date decline and 73% fall from the stock’s peak in late 2020, valuation has “become more interesting to us,” the firm says.
• BofA upgraded Humana (HUM) to Neutral from Underperform with a price target of $308, up from $247, on the results of the election. The risk reward at these valuations has “dramatically improved” as the potential for stronger rates, and reduced scrutiny on stars and antitrust, each give Humana “a potential avenue for stock appreciation,” the firm says.
• Raymond James upgraded Masimo (MASI) to Outperform from Market Perform with a $170 price target. Estimates are expected to trend higher and the Masimo story is “much cleaner without Consumer, which makes it tougher for us to stay neutral,” Raymond James says.
• TD Cowen upgraded Clorox (CLX) to Hold from Sell with a price target of $170, up from $155. The firm says the company’s fiscal 2025 guidance now appears conservative in light of sequential improvement post the August 2023 cyberattack.
• Deutsche Bank upgraded Celanese (CE) to Buy from Hold with a price target of $110, down from $135. The firm cites valuation for the upgrade following the stock’s 26% decline post the Q3 earnings release.

Top 5 Downgrades:

• BofA downgraded Five Below (FIVE) to Underperform from Neutral with a price target of $75, down from $98, as the firm does not see a clear path to a turnaround in comparable store sales growth and expects continued margin deleverage on lower sales and incremental tariff costs.
• BofA downgraded Universal Health (UHS) to Neutral from Buy with a price target of $223, down from $259. After the election win for Donald Trump, the firm sees risks to exchanges and Medicaid supplemental payments, noting that it views the Trump win as negative for healthcare facilities, and hospitals in particular, and believes that the current favorable environment is at risk. BofA also downgraded Ardent Health (ARDT) to Neutral from Buy with a price target of $19, down from $22.
• JPMorgan downgraded Supermicro (SMCI) to Underweight from Neutral with a price target of $23, down from $50. Last night the company issued a positive update related to the opinion of the Special Committee, but JPMorgan expects more uncertainty around both the company’s regulatory filings and business fundamentals.
• BofA downgraded Oscar Health (OSCR) to Underperform from Neutral with a price target of $13.50, down from $21, as the firm argues that a change in administration “dramatically increases” the odds of that the enhanced exchange subsidies expire and that the regulatory environment tightens.
• TD Cowen downgraded Grocery Outlet (GO) to Hold from Buy with a price target of $16, down from $25. The firm moves to the sidelines pending more confidence that Grocery Outlet “can execute its roadmap for future success.”

Top 5 Initiations:

• Bernstein initiated coverage of Insulet (PODD) with an Outperform rating and $300 price target. Innovation is driving accelerated insulin pump market growth, and Insulet “has a strong moat around the winning form factor,” the firm says, adding that the type 2 opportunity should drive significant upside to estimates. Bernstein also started coverage of Tandem Diabetes (TNDM) with an Outperform rating and $42 price target.
• Wells Fargo initiated coverage of Rambus (RMBS) with an Overweight rating and $62 price target. The company is strategically positioned to benefit from increasing data center memory complexity, companion chip expansion, and a significant content increase in new MRDIMMs, the firm says.
• Barclays initiated coverage of Tencent Music (TME) with an Overweight rating and $16 price target. The combination of a market with little competition, management’s track record of adaption and execution, and a “new growth path ahead” make Tencent Music one of the best positioned Chinese internet companies, the firm tells investors in a research note.
• Jefferies initiated coverage of Ryman Hospitality (RHP) with a Buy rating and $130 price target. The firm highlights the company’s “unique” hospitality assets within the long-booking-window group market, saying a post-COVID recovery room and incremental asset growth is likely.
• JPMorgan resumed coverage of Pacs Group (PACS) with an Overweight rating and $40 price target following a period of restriction. The firm believes Pacs has an attractive business model focused on acquiring underperforming skilled nursing facilities and driving improvement in clinical, operational, and financial performance.