Target downgraded, Chewy 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:

• BofA upgraded Chewy (CHWY) to Buy from Underperform with a price target of $40, up from $24. Easier upcoming comparisons and commentary from the firm’s recent pet expert call make the firm confident that the industry can return to consistent low-to-mid single digit percentage growth, the firm added.
• BofA upgraded Inspire Medical (INSP) to Buy from Neutral with a price target of $255, up from $220. Inspire has turned the corner on profitability and margin upside seems durable, the firm tells investors.
• Guggenheim upgraded SolarEdge (SEDG) to Neutral from Sell and removed the firm’s prior $10 price target. The decline in the stock has brought the share price close to the previous target of $10 and though the firm made some additional revisions to its model, at this point it regards the stock as fairly valued.
• Barclays upgraded Newell Brands (NWL) to Overweight from Equal Weight with a price target of $10, up from $8. The firm believes Newell’s turnaround strategy “is still in the very early days of yielding benefits” and expects this to result in share price outperformance.
• Morgan Stanley upgraded Lemonade (LMND) to Equal Weight from Underweight with a price target of $42, up from $23, following the investor day. Lemonade “charted an ambitious goal” of growing its business from $1B in premiums to $10B over the next few years, the firm tells investors in a research note.

Top 5 Downgrades:

• Citi downgraded Target (TGT) to Neutral from Buy with a price target of $130, down from $188. Although the company’s Q3 “may have had some unique challenges,” the “very poor results” show Target is likely losing share to Walmart (WMT), the firm tells investors in a research note.
• Oppenheimer downgraded JPMorgan (JPM) to Perform from Outperform on valuation. The firm is moving to the sidelines as the stock now trades essentially in line with its fair value model.
• B. Riley downgraded Fabrinet (FN) to Sell from Neutral with a price target of $178, down from $194. The firm believes the trend of unbundling Nvidia’s (NVDA) GPU platforms will adversely impact Fabrinet’s optics business.
• Exane BNP Paribas downgraded Toast (TOST) to Neutral from Outperform with a $37 price target. The firm cites valuation for the downgrade with the shares having more than doubled year-to-date.
• RBC Capital downgraded Northern Oil and Gas (NOG) to Sector Perform from Outperform with a price target of $45, up from $43. The firm is constructive on the company’s outlook, but sees the stock’s relative valuation as “inline-to-above peers.”

Top 5 Initiations:

• Bernstein initiated coverage of Cava Group (CAVA) with a Market Perform rating and $145 price target. The firm believes Cava has the potential to be the “next big thing” in the restaurant industry, having showed ability to grow same-store-sales by 25% over the past three years, while doubling its number of stores and demonstrating the portability of the concept by expanding the geographic footprint.
• Piper Sandler initiated coverage of AppLovin (APP) with an Overweight rating and $400 price target. The shares have “appropriately re-rated” following an artificial intelligence-driven acceleration, but Piper still sees upside.
• UBS initiated coverage of GlobalFoundries (GFS) with a Neutral rating and $47 price target. The company has a favorable position, but its markets are likely oversupplied, the firm tells investors in a research note.
• Barclays reinstated coverage of Tapestry (TPR) and Capri Holdings (CPRI) with Equal Weight ratings and price targets of $57 and $21, respectively. With the macro backdrop “choppy,” the aspirational luxury consumer will be “increasingly choiceful” with their spending, limiting sales and margin upside and setting up a balanced risk/reward for the shares, the firm tells investors in a research note.
• JPMorgan initiated coverage of Ingram Micro (INGM) with a Neutral rating and $28 price target. The company has a solid position in the enterprise IT market, but its near-term catalysts might be limited pending greater evidence of a rebound in enterprise IT spending following the pullbacks in 2023 and 2024, the firm tells investors in a research note.