Molson Coors upgraded, Rivian 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:

• Citi upgraded Bank of America (BAC) to Buy from Neutral with a price target of $54, up from $46. The best way to play bank group post the election is “convergence,” the analyst tells investors in a research note. The firm says the valuation spread between BAC and JPMorgan (JPM) “remains very outsized adjusted for returns.” Citi sees a “very attractive risk/reward” in Bank of America, saying the bank is “a low-risk firm” and could benefit from a lighter regulatory environment.
• Wells Fargo double upgraded Molson Coors (TAP) to Overweight from Underweight with a price target of $74, up from $52. The firm is moving on from its cautious view, stating that it now wants to “chase a model where unique cash returns support EPS growth” with little EBIT growth needed, at a historically low valuation with catalysts. Staples may struggle with normalizing growth and valuation pressure in 2025, but Molson Coors’ ability to return cash at low valuation “seems unique,” the analyst tells investors.
• Telsey Advisory upgraded Home Depot (HD) and Lowe’s (LOW), each to Outperform from Market Perform. The firm expects further market share gains given Home Depot’s “best-in-class execution and digital prowess, and says it has increased confidence in Lowe’s returning to solid sales and earnings growth in 2025 and beyond, “with a number of recently heightened catalysts for the business.”
• Goldman Sachs upgraded Wingstop (WING) to Buy from Neutral with a price target of $377, down from $458. Despite “solid fundamentals with best-in-class returns and growth,” Wingstop shares are down 25% in the last month following a cost-driven Q3 miss and in light of investor concerns over potential same-store-sales deceleration in fiscal 2025, the analyst tells investors
• KeyBanc upgraded Doximity (DOCS) to Overweight from Sector Weight with a $70 price target. The company’s “very healthy” fiscal Q2 report and forward-looking outlook suggests its momentum is building into the years ahead, the analyst tells investors in a research note. The firm says that with consensus estimates largely reset in the out-years, combined with a year-end outlook suggestive of a better upsell budget flush environment than feared, Doximity’s share setup for next year is more achievable. Wells Fargo also upgraded Doximity to Equal Weight from Underweight with a price target of $41, up from $19, after a Q2 beat.

Top 5 Downgrades:

• BofA downgraded Rivian Automotive (RIVN) to Neutral from Buy with a price target of $13, down from $20. While noting that the company is on track for a positive gross margin in Q4 and calling it “one of the most viable among the startup EV automakers,” the firm notes that positive gross margin will be supported by regulatory credits that could be at risk under the Trump administration. BofA also now expects only moderate growth in deliveries in 2025, the analyst added.
• Goldman Sachs downgraded Sweetgreen (SG) to Neutral from Buy with an unchanged price target of $40. With the shares up 273% year-to-date, Goldman believes Sweetgreen is fairly valued. While Infinite Kitchen continues to be a long-term driver of productivity and component of accelerated unit growth for the company, the more immediate catalysts in the near-term have been already priced in, the analyst tells investors
• Barclays downgraded Bath & Body Works (BBWI) to Underweight from Equal Weight with a price target of $28, down from $31. The analyst believes there is risk of ongoing sales and margin pressure in 2025 from a weakening U.S. macro environment, spending normalization in the beauty segment, and inventory building.
• JMP Securities downgraded Nerdy (NRDY) to Market Perform from Outperform without a price target. The company reported Q3 results that came in slightly better than consensus revenue and EBITDA, but it lowered forward guidance again as Q4 revenue guidance came in 20% below consensus, the analyst tells investors. Cantor Fitzgerald also downgraded Nerdy to Neutral from Overweight with a price target of $1, down from $6.
• Macquarie downgraded Planet Fitness (PLNT) to Neutral from Outperform with a price target of $99, up from $91, following the Q3 report. The shares are up 30% year-to-date on the company’s pricing power and new equipment, but memberships growth is slow, the analyst tells investors.

Top 5 Initiations:

• Jefferies initiated coverage of Inhibikase Therapeutics (IKT) with a Buy rating and $8 price target. The stock looks inexpensive as its novel imatinib oral pro-drug IkT-001Pro will enter Phase 2B for PAH, with an added free Parkinson’s call option for oral risvodetinib, where expectations are super low, the analyst tells investors in a research note. :th
• UBS initiated coverage of Flutter Entertainment (FLUT) with a Buy rating and $306 price target. The firm thinks the company will report a Q3 sales beat driven by strong performance across both the U.S. and rest of world segments as well as reiterate its guidance. UBS thinks this will be a positive result amid current market uncertainty regarding U.S. hold in early Q4 that has driven DraftKings to revise down its fiscal 2024 guidance.
• RBC Capital initiated coverage of Cytokinetics (CYTK) with an Outperform rating and $80 price target. With the shares down 50% since the January peak, the $3.6B opportunity driven by aficamten’s convenience, safety and efficacy in hypertrophic cardiomyopathy is not being fully valued, the analyst tells investors in a research note. The firm also sees pipeline upside, and estimates omecamtiv and CK-586 offering a combined over $1.5B in long-term revenues.
• Stephens initiated coverage of Pyxis Oncology (PYXS) with an Overweight rating and $13 price target. The firm views the antibody-drug conjugate or ADC, space as “a highly promising technology” and notes that the company is nearing a pivotal event with the readout of their first-in-human, preliminary Phase 1 dose escalation study for a basket of solid tumors treated with lead asset PYX-201. Stephens also initiated coverage of Immunome (IMNM) with an Overweight rating, ADC Therapeutics (ADCT) with an Overweight rating and Bicycle Therapeutics (BCYC) with an Equal Weight rating.
• Guggenheim initiated coverage of Cidara Therapeutics (CDTX) with a Buy rating and $33 price target.