Workday initiated, Kraft Heinz 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:

• Erste Group upgraded Salesforce (CRM) to Buy from Hold. Salesforce is in a position to continuously increase its revenue and operating margin given its leading position in the areas of customer service, marketing automation and, in particular, data analysis using AI, the firm tells investors.
• Erste Group upgraded Intuitive Surgical (ISRG) to Buy from Hold. Sales and profits will increase at double-digit percentage growth rates in 2024 and 2025, which is “significantly higher than that of the global healthcare sector,” the firm tells investors.
• Leerink upgraded Aclaris Therapeutics (ACRS) to Outperform from Market Perform with a price target of $7, up from $2, representing over 120% upside from current levels. Following completion of the company’s strategic review, the firm expects investor focus to shift to its “newly strengthened” immunology-focused pipeline that includes two in-licensed biologics from discovery-focused Biosion – BSI-045B and BSI-502. Jefferies also upgraded Aclaris Therapeutics to Buy from Hold with a price target of $7, up from $2.
• Evercore ISI upgraded BioNTech (BNTX) to Outperform from In Line with a price target of $125, up from $110. The firm says the upgrade is a combination of opportunism in the shares, valuation, and an increasingly compelling fundamental outlook around BioNTech’s “deep and staggered” oncology pipeline.
• UBS upgraded Comfort Systems USA (FIX) to Buy from Neutral with a price target of $525, up from $396. The firm expects the cyclical tailwinds in manufacturing and datacenters, combined 60% of the company’s revenue, to support continued double-digit organic growth in the next two years.

Top 5 Downgrades:

• Piper Sandler downgraded Kraft Heinz (KHC) to Neutral from Overweight with a price target of $35, down from $40. The firm notes that its prior thesis of improving retail momentum with incremental food service initiatives depended on improving retail, but that hasn’t materialized, the firm tells investors in a research note.
• OTR Global downgraded its view of Dollar General (DG) to Mixed from Positive. The firm is citing checks with suppliers and store managers for the downgrade.
• Truist downgraded Academy Sports (ASO) to Hold from Buy with a price target of $50, down from $63. While the firm remains optimistic about long-term opportunities, it thinks potentially higher tariffs may further limit demand from Academy’s core middle-income consumers that are already facing material pressure.
• Needham downgraded Blink Charging (BLNK) to Hold from Buy without a price target. The firm sees minimal visibility into a sustained end market improvement for Blink.
• Needham downgraded ChargePoint (CHPT) to Hold from Buy and removed the firm’s previous price target. ChargePoint has demonstrated “commendable” operating expense leverage, but a lack of revenue growth has led to a pushout in previously communicated adjusted EBITDA profitability guidance, notes the firm, which also says the timing of any EV tailwind is now more uncertain given the change in White House leadership.

Top 5 Initiations:

• Scotiabank initiated coverage of Workday (WDAY) with an Outperform rating and $340 price target. The firm names Workday and Salesforce Top Picks in the sector, and says that after a “choppy year” for the software sector followed by a strong three months, there is opportunity to generate alpha by continuing to own “clear market winners” as well as companies with re-rate potential on the benefits or artificial intelligence. Scotiabank also started coverage of Salesforce, Autodesk (ADSK), ServiceNow (NOW), Monday.com (MNDY), and with Outperform ratings.
• Scotiabank initiated coverage of Zoom Technologies (ZOOM) with a Sector Perform rating and $85 price target. Stock picking “has become more crucial than ever” with the bulk of investor interest being in semiconductors to questions on why certain software businesses should still exist beyond five years, the firm tells investors in a research note. Scotiabank also started coverage of Asana (ASAN), Dayforce (DAY), Intuit (INTU), Sprinklr (CXM), Sprout Social (SPT), Veeva (VEEV), and ZoomInfo (ZI) with Sector Perform ratings.
• Barclays initiated coverage of Okta (OKTA) with an Equal Weight rating and $81 price target. The firm has Microsoft (MSFT) has the number one share and Okta number two in the bigger workforce market, while Okta is number one in faster growing customer identity and access management.
• Berenberg initiated coverage of Moderna (MRNA) with a Hold rating and $42 price target. The firm believes mRNA will revolutionize the treatment of multiple diseases, but says it prefers BioNTech for exposure relative to Moderna. Berenberg started coverage of the latter with a Buy rating.
• Morgan Stanley initiated coverage of WeRide (WRD) with an Overweight rating and $23 price target. The firm is constructive on the company’s “solid” order pipeline in robotaxis and robovans, which it expects will reach large-scale commercialization by 2026.