Walmart initiated, Uber 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:

• Erste Group upgraded Uber (UBER) to Buy from Hold. Uber should continue to significantly increase revenue, operating income and net profit in the coming quarters, notes the firm, which also views the potential acquisition of Expedia (EXPE), as raised in media reports as a possibility, as a positive.
• Citi upgraded First Solar (FSLR) to Buy from Neutral with a price target of $254, up from $200, ahead of the Q3 results and U.S. elections. First Solar can benefit in almost any election outcome, the firm tells investors in a research note.
• Jefferies upgraded Paylocity (PCTY) to Buy from Hold with a price target of $200, up from $145. The firm notes that with the company’s expectations having been reset for FY25, Jefferies sees a path for organic outperformance.
• Citi upgraded Fluor (FLR) to Buy from Neutral with a price target of $65, up from $52. The company’s outlook and execution “continues to evolve positively” and its backlog has increased over the last several quarters, the firm tells investors in a research note.
• Seaport Research upgraded AMC Networks (AMCX) to Buy from Neutral with an $11 price target. The firm thinks AMC Network’s ongoing free cash flow generation will continue to enable significant debt reduction and argues that streaming and content revenues can help to manage continued subscriber losses impacting affiliate and advertising revenue.

Top 5 Downgrades:

• Bernstein downgraded Global Payments (GPN) to Market Perform from Outperform with a price target of $112, down from $135. The firm acknowledged the stock’s “undemanding valuation,” but struggles to see upside catalysts over the next few months.
• BTIG downgraded Deckers Outdoor (DECK) to Neutral from Buy without a price target. The firm sees the stock’s risk/reward as balanced after its channel checks picked up a slower start to the holiday for Ugg and the likelihood that any upside stems more from wholesale than direct-to-consumer, which it sees as unlikely to be rewarded by investors at current valuation levels.
• Rosenblatt downgraded Coherent (COHR) to Neutral from Buy with a $105 price target. While the firm believes Coherent will be “a long-term AI winner,” and contends that the stock looks good for investors with a three-year time horizon, it foresees FY25 headwinds that “may disappoint more bullish expectations.”
• Citi downgraded Canadian Solar (CSIQ) to Sell from Neutral with a price target of $11, down from $19, ahead of the Q3 results and U.S. elections. Canadian Solar will face a different set of challenges under either administration, the firm tells investors in a research note.
• Raymond James downgraded Tecnoglass (TGLS) to Market Perform from Strong Buy without a price target. The firm says the stock’s valuation has expanded, making the risk/reward “far more balanced,” even if the ongoing strategic review results in sale of the company.

Top 5 Initiations:

• Bernstein initiated coverage of Walmart (WMT) with an Outperform rating and $95 price target as the firm started seven companies in the U.S. broadlines and hardlines retail industry with Walmart as its top pick. The firm expects Walmart to leverage its scale advantage to offer “great value to consumers in times of uncertainty and to gain share in an omni-channel market.” Bernstein also started coverage of Costco (COST), Lowe’s (LOW) and Dollar General (DG) with Outperform ratings, and Target (TGT), Dollar Tree (DLTR) and Home Depot (HD) with Market Perform ratings.
• Mizuho initiated coverage of Synopsys (SNPS) with an Outperform rating and $650 price target. The firm believes Synopsys is “uniquely positioned” given that its software remains critical to producing the GPUs needed for driving the $100 trillion artificial intelligence industrial revolution. Mizuho also started coverage of Cadence Design (CDNS) with an Outperform rating.
• Redburn Atlantic initiated coverage of Mondelez (MDLZ) with a Buy rating and $82 price target, calling it its top pick of the confectionery companies. In Europe and North America, alongside strengthening the core chocolate and biscuits business, Mondelez has reshaped its portfolio towards faster-growing adjacent snack categories, the firm tells investors in a research note.
• Redburn Atlantic initiated coverage of Hershey (HSY) with a Sell rating and $165 price target. The firm says its analysis highlights multiple challenges” for Hershey, including flat chocolate consumption, rising health concerns and intensified competition.
• Craig-Hallum initiated coverage of Samsara (IOT) with a Hold rating and $48 price target as the firm sees value in the long-term growth story but says current valuation levels in a weakening economy keep it on the sidelines for the time being.
• Stifel initiated coverage of Braze (BRZE) with a Buy rating and $37 price target. The company is well positioned to capture share in the customer engagement software space, and has built a leading-edge multi-channel marketing platform that is difficult to replicate, the firm tells investors in a research note.