Micron upgraded, Peloton 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:

• Baird upgraded Micron (MU) to Outperform Technology from Neutral with a price target of $150, up from $115. The firm also added the shares to its list of top semiconductor ideas. Baird sees “meaningful upside opportunities ahead” for Micron.
• Morgan Stanley upgraded Silicon Motion (SIMO) to Overweight from Equal Weight with a price target of $88, up from $59. The company has “ample business tailwinds,” including a larger backlog and margin expansion, along with potentially more business upside from the artificial intelligence era, the firm tells investors in a research note.
• Evercore ISI upgraded Sensata Technologies (ST) to Outperform from In Line with a price target of $60, up from $44. The company is on a path to better and more consistent execution that should help unlock multiple expansion over the next few years, the firm tells investors in a research note.
• Jefferies upgraded Glaukos (GKOS) to Buy from Hold with a price target of $125, up from $84. The firm cites positive survey takes, which showed healthy doctor volume and use expectations for iDos.
• Morgan Stanley upgraded U.S. Steel (X) to Overweight from Equal Weight with a price target of $48, down from $51. The firm cites expected value creation from the company’s “transformational investments” following the recent share pullback for the upgrade.

Top 5 Downgrades:

• Citi downgraded Peloton (PTON) to Neutral from Buy with a price target of $4, down from $8, following the company’s management changes and new $200M restructuring plan.
• Morgan Stanley downgraded Victoria’s Secret (VSCO) to Underweight from Equal Weight with a price target of $15, down from $19. The firm, which anticipates sales and margin driven Q1 EPS downside, thinks Q1 underperformance comes with a fiscal year guidance reduction that the market isn’t fully appreciating.
• UBS downgraded Johnson Controls (JCI) to Neutral from Buy with a price target of $68, down from $74. The firm sees a difficult path to the fiscal 2024 guidance and Johnson’s growth continuing to lag peers.
• Citi downgraded Comerica (CMA) to Neutral from Buy with a price target of $56, down from $60. The firm’s post-earnings conversations with Comerica’s in-state peers indicate deposit mix shift trends are still elevated and 2024 loan growth is likely to be limited.
• Scotiabank downgraded OpenText (OTEX) to Sector Perform from Outperform with a price target of $40, down from $5. While the company is seeing increasing interest and commitment in its cloud offerings, customers are taking longer to ramp to full value, which leads the firm to slightly lower its cloud growth assumptions and now model just slight total organic growth in FY25, the firm told investors.

Top 5 Initiations:

• MoffettNathanson initiated coverage of Flutter Entertainment (FLUT) with a Buy rating and $240 price target following recent U.S. listing. The firm sees a unique opportunity to invest in what it identifies as “the leading global online sports betting and iGaming company with, most importantly, the #1 position in the U.S., the fastest growing and largest market in the
• Morgan Stanley resumed coverage of Warner Music Group (WMG) with an Overweight rating and $43 price target. The firm says that in the past 18 months, the music industry has seen “significant positive developments,” including price increases and the adoption of artist-centric models which directly increase the value of music and music labels.
• JPMorgan initiated coverage of Pacs Group (PACS) with an Overweight rating and $27 price target. The firm likes the company’s business model and growth strategy, which are focused on acquiring skilled nursing facilities with sub-optimal clinical quality, occupancy, skilled mix, and EBITDA, and driving substantial improvement across these key metrics over several years. Citi, Oppenheimer, Truist, RBC Capital, and Stephens also started coverage of the name with Buy-equivalent ratings.
• H.C. Wainwright initiated coverage of Jasper Therapeutics (JSPR) with a Buy rating and $65 price target. The company’s pipeline consists of IV and subcutaneous formulations for its lead asset, briquilimab, the firm notes, adding it believes briquilimab represents a pipeline within a product.
• Morgan Stanley initiated coverage of EHang (EH) with an Overweight rating and $27.50 price target. Electric vertical take-off and landing demand appears “set to take off,” with growing regulatory and government support in China, the firm tells investors in a research note.