Verizon downgraded, Canadian Pacific 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:

• Susquehanna upgraded Canadian Pacific Kansas City (CP) to Positive from Neutral with a price target of $92, down from $94. Near-term headline risk creates a long-term opportunity to own what the firm sees as “the best growth story in rails at a fair price,” the firm added.
• Deutsche Bank upgraded Regions Financial (RF) to Buy from Hold with a price target of $26, up from $24. The shares should benefit from relatively low expectations, less risk of regulatory related earnings hits and a low valuation versus peers, the firm tells investors in a research note.
• JPMorgan upgraded NextEra Energy Partners (NEP) to Neutral from Underweight with a price target of $22, down from $25. JPMorgan believes a dropdown announcement, in conjunction with a distribution reset, could be a catalyst for the stock and provide increased growth visibility into fiscal 2026 and beyond.
• Piper Sandler upgraded Steris (STE) to Overweight from Neutral with a price target of $260, up from $230. The upgrade is more a call that the negativity surrounding healthcare equipment and ethylene oxide litigation risk are fully reflected in shares at current valuation levels than it is on the upcoming earnings report, the firm tells investors in a research note.
• Piper Sandler upgraded Hanmi Financial (HAFC) to Overweight from Neutral with a price target of $25.50, up from $20, citing what the firm calls a “much better” net interest margin outlook and core deposit funded loan growth traction.

Top 5 Downgrades:

• KeyBanc downgraded Verizon (VZ) to Sector Weight from Overweight without a price target. The company’s Q3 results were below expectations and there is limited room for EBITDA acceleration in 2025, the firm tells investors in a research note.
• Deutsche Bank downgraded U.S. Bancorp (USB) to Hold from Buy with an unchanged price target of $51. A further meaningful recovery of U.S. Bancorp shares relative to peers “may be tough” with fewer Federal Reserve rate cuts, potentially continued disappointment in payments revenues in the near term and longer-term uncertainty, the firm says.
• JPMorgan downgraded Dyne Therapeutics (DYN) to Neutral from Overweight with a price target of $35, down from $43. JPMorgan downgrades the shares post outperformance and expects Dyne to be a relative performer over the mid-term.
• KeyBanc downgraded Howmet Aerospace (HWM) and ATI (ATI) to Sector Weight from Overweight as part of a broader research note on the Aerospace sector. Given the incremental uncertainty and volatility in aircraft production and engine delivery rates, it is prudent to reduce near-term earnings estimates, the firm tells investors in a research note.
• Wolfe Research downgraded Outfront Media (OUT) to Peer Perform from Outperform. The company reported an increase in national revenues after recent quarters of declines, but the business remains soft and the recovery has been slower than was expected at the start of the year, the firm says.

Top 5 Initiations:

• BofA resumed coverage of Sirius XM (SIRI) with an Underperform rating and $23 price target. The firm believes subscriber growth will remain muted moving forward, ARPU will be pressured on a mix shift towards streaming, elevated satellite and non-satellite capex as well as higher interest will weigh on free cash flow for the rest of 2024 and 2025, and that higher leverage will constrain buybacks until 2026-27.
• UBS initiated coverage of Syndax (SNDX) with a Buy rating and $37 price target. The firm launched coverage of SMID cap biotech sector with a focus in oncology and autoimmune diseases. Its top pick is Syndax. UBS also started coverage of Perspective Therapeutics (CATX), Nurix Therapeutics (NRIX), Merus (MRUS), Kura Oncology (KURA), Janux Therapeutics (JANX), Ideaya Biosciences (IDYA), Iovance Biotherapeutics (IOVA), Cullinam Therapeutics (CGEM), and CG Onocology (CGON) with Buy ratings.
• UBS initiated coverage of Nuvalent (NUVL) with a Neutral rating and $100 price target. The firm says Nuvalent’s “best-in-class” therapies in lung cancer are largely reflected in the stock price. UBS also started coverage of Blueprint Medicines (BPMC) with a Neutral rating.
• Wells Fargo initiated coverage of Gen Digital (GEN) with an Overweight rating and $35 price target. The firm believes the company can continue to grow EPS in the mid-teens range, while also reducing the net leverage ratio below 3-times EBITDA by FY27.
• Jefferies initiated coverage of Sempra Energy (SRE) with a Buy rating and $98 price target. The market under-appreciates Sempra’s growth potential with shares trailing the XLU by 15% year-to-date, contends the firm.