Flutter initiated, SentinelOne 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:

• Canaccord upgraded SentinelOne (S) to Buy from Hold with a price target of $23, down from $28. The firm views SentinelOne as a long-term secular winner due to the company’s positioning as a data-driven security platform, and believes the stock selloff is “well overdone.”
• Redburn Atlantic upgraded Upstart (UPST) to Neutral from Sell with a price target of $25.50, up from $22.50. Upstart continues to operate in a challenging environment, but its Q1 results show “evidence of green shoots appearing” despite the weaker Q2 guide, the firm tells investors in a research note.
• Wells Fargo upgraded DT Midstream (DTM), Kinder Morgan (KMI) and Williams (WMB) to Overweight from Equal Weight with price targets of $77, $22 and $46, respectively. The firm sees continued multiple expansion for natural gas midstream stocks driven by growing gas demand supported by artificial intelligence, re-shoring and liquified natural gas.
• Mizuho upgraded Sunoco LP (SUN) to Buy from Neutral with a price target of $59, down from $60. The stock has been a notable underperformer since early March, which is a “surprising development in light of fundamental tailwinds,” the firm tells investors in a research note.
• Morgan Stanley upgraded Heico (HEI) to Equal Weight from Underweight with a price target of $225, up from $178. The firm continues to see a strong backdrop for commercial aftermarket helping to support the company’s above peer valuation.

Top 5 Downgrades:

• Mizuho downgraded PTC (PTC) to Neutral from Buy with a price target of $190, down from $200. The firm cites sluggish demand trends and the company’s slower than expected software-as-a-service transition for the downgrade.
• Goldman Sachs double downgraded Maxeon Solar (MAXN) to Sell from Buy with a price target of $1, down from $11. The firm says weak market conditions and a lack of Department of Energy loan led to financing uncertainty for Maxeon.
• Barclays downgraded Stanley Black & Decker (SWK) to Equal Weight from Overweight with a price target of $86, down from $100. The firm thinks the company’s sales are likely to remain “sluggish” through 2025, given the need for further inventory reduction and a subdued consumer spend environment.
• Barclays downgraded Allegion (ALLE) to Underweight from Equal Weight with a price target of $116, down from $122. The firm thinks the company’s high U.S. greenfield commercial construction exposure will weigh on its sales, and that stable trends in the institutional side will not be strong enough to offset this.
• Mizuho downgraded Procore (PCOR) to Neutral from Buy with a price target of $70, down from $75. The firm cites weak trends in the construction industry for the downgrade.

Top 5 Initiations:

• Oppenheimer initiated coverage of Flutter Entertainment (FLUT) with an Outperform rating and $240 price target. The firm expects FanDuel to maintain leading U.S. market share and believes Flutter’s higher unit economics make it best positioned to absorb more U.S. states potentially increasing online gaming taxes.
• BofA initiated coverage of Zeekr (ZK) with a Buy rating and $35 price target. The firm expects Zeekr to post 27% annual revenue growth through 2024 and turn profitable in 2026, driven by 31% annual volume, supported by its solid product pipelines and superior customer value proposition, margin improvement and improving operating leverage, thanks to scale effects and synergy with Geely Group. Goldman Sachs also started coverage of Zeekr with a Buy rating and $34 price target.
• Stephens initiated coverage of TransMedics (TMDX) with an Overweight rating and $151 price target. TransMedics is a commercial stage medical device company marketing its Organ Care System for use in organ transplants, notes the firm, which believes the company is positioned to drive long-term growth and sustained profitability with its “well capitalized balance sheet.”
• Craig-Hallum initiated coverage of Silvaco (SVCO) with a Buy rating and $25 price target. The firm believes following Silvaco’s recent IPO it is positioned well as customers face increasingly complex design and manufacturing challenges and seek improved cost efficiency and speed to market.
• Oppenheimer initiated coverage of Cartesian Therapeutics (RNAC) with an Outperform rating and $50 price target. The firm believes Descartes-08 can deliver competitive results in myasthenia gravis with a longer treatment effect than available therapies.