Pony AI, Thermo Fisher initiated: 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 Upgrades:

• H.C. Wainwright upgraded Aclaris Therapeutics (ACRS) to Buy from Neutral with a $20 price target after the company entered into an exclusive license agreement with privately held Biosion.
• Raymond James upgraded Weyerhaeuser (WY) to Outperform from Market Perform with a $32 price target, citing improving lumber fundamentals and “deep valuation discount.”
• Raymond James upgraded PotlatchDeltic (PCH) to Outperform from Market Perform with a $45 price target. The firm sees a steadily improving backdrop forming for lumber price fundamentals.
• Piper Sandler upgraded GCM Grosvenor (GCMG) to Overweight from Neutral with a price target of $14, up from $12.50. There has been a “noticeable shift in sentiment” in the alternatives space in recent months and Piper does not believe the discounted valuation that GCM Grosvenor is trading at is warranted.

Top Downgrades:

• William Blair downgraded Applied Therapeutics (APLT) to Market Perform from Outperform without a price target. While the management turnover “was a necessary step in beginning to rebuild the company s reputation and credibility,” Applied’s business update makes it increasingly unclear when it could begin generating revenue given the marketing authorization application in galactosemia was withdrawn and the new drug application in sorbitol dehydrogenase will no longer be submitted in Q1, the firm tells investors in a research note.
• Jefferies downgraded Mesoblast (MESO) to Hold from Buy with a price target of A$2.30, up from A$1.10. After Mesoblast’s recent share price appreciation, the firm downgraded the shares on valuation.
• BTIG downgraded Innovative Industrial Properties (IIPR) to Neutral from Buy with no price target. The firm cites the company’s announcement last week that its largest tenant, multistate operator PharmaCann which accounts for 16.5% of the company’s annualized base rent, had failed to pay December rent at its six cultivation facilities. Alliance Global Partners also downgraded Innovative Industrial Properties to Neutral from Buy with a price target of $75, down from $130, following the announcement of PharmaCann defaulting on its rent payment in December.

Top Initiations:

• BofA initiated coverage of Pony AI (PONY) with a Buy rating and $18 price target. BofA likes Pony’s proprietary Virtual Driver technology, and believes the Chinese government will continue to have policies for the robotaxi/robotruck industry and to support industry leaders like Pony, against the backdrop of mobility transformation becoming a key area of technology competition between China and the U.S.
• Scotiabank initiated coverage of Thermo Fisher Scientific (TMO), Danaher (DHR), Waters Corporation (WAT), all with Sector Perform ratings, and price targets of $605, $265 and $430, respectively. The firm’s long-term outlook for the life science tools sector “has been and remains bullish,” but in the near term, Scotiabank is more neutral on these large cap names given continued end-market uncertainties, particularly with biopharma and China, and, to a lesser extent, any political uncertainties exiting 2024.
• Brookline initiated coverage of Exelixis (EXEL) with a Buy rating. The firm anticipates Exelixis will continue to develop its commercial drugs, Cabometyx, and Cometriq, while its partner Genentech will continue to develop Cotellic.
• H.C. Wainwright initiated coverage of enGene (ENGN) with a Buy rating and $25 price target. The firm says the non-muscle invasive bladder cancer treatment landscape is undergoing a renaissance, and enGene’s detalimogene “represents an innovative treatment option.”
• H.C. Wainwright initiated coverage of Sanara MedTech (SMTI) with a Buy rating and $50 price target. The medical technology company is focused on the development and commercialization of products and services that improve clinical outcome in the surgical and chronic wound care markets and the company’s successful strategy of market penetration and geographic expansion could continue to drive topline growth in the coming quarters, the firm tells investors.