Street Wrap: Today’s 15 Upgrades, Downgrades, Initiations

Block upgrade, Domino’s downgrades and MGM initiation among today’s calls on Wall Street

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Check out today’s top analyst calls from around Wall Street:

5 Upgrades:

• Evercore ISI upgraded Block (SQ) to In Line from Underperform. The analyst says the company’s new, long-term investment framework commits it to increased financial discipline. [read more]
• Benchmark upgraded NeoGenomics (NEO) to Buy from Hold. The company reported “solid” Q4 results and its reorganization plans looks doable, the analyst tells investors. [read more]
• Jefferies upgraded Esperion (ESPR) to Buy from Hold as a new analyst assumed coverage of the stock, citing a better management tone into Phase 3 CLEAR CV outcomes data due at ACC on March 4 and better visibility into the company’s cash runway. [read more]
• Canaccord upgraded Kratos Defense (KTOS) to Buy from Hold, following the company’s Q4 report. Management, which maintained its 2023 expectation for 10% top-line growth, was “particularly enthusiastic” about the Government Solutions segment outlook, the analyst tells investors. [read more]
• CLSA upgraded Vipshop (VIPS) to Buy from Outperform. The company’s Q4 results beat again given recovering demand and “abundant” cheap supply, the analyst tells investors. [read more]

5 Downgrades: 

• Baird downgraded Domino’s Pizza (DPZ) to Neutral from Outperform, as the firm came away from the company’s Q4 report with lower conviction in its fundamental outlook. [read more] Citi also downgraded Domino’s Pizza to Neutral from Buy, post the Q4 results. [read more]

• SVB Securities downgraded Moderna (MRNA) to Underperform from Market Perform, arguing that the company’s fiscal 2022 results and updated 2023 guidance gave a deeper look into long-term margins as the pandemic revenue boom comes to an end. The firm also sees potential additional royalties from the National Institutes of Health to Arbutus Biopharma (ABUS) and Alnylam (ALNY) presenting further potential downside risk to Moderna. [read more]
• JPMorgan downgraded C4 Therapeutics (CCCC) to Underweight from Neutral, post the Q4 results. The firm remains “somewhat skeptical” of the value accretive potential of clinical updates for CFT7455 and CFT8634 in the second half of 2023. [read more]
• Jefferies downgraded Nektar Therapeutics (NKTR) to Underperform from Hold. The Phase 2 of rezpegaldesleukin in systemic lupus erythematosus did not meet primary endpoint or high efficacy hurdle set by Eli Lilly (LLY), the analyst tells investors. [read more]
• Goldman Sachs downgraded Yeti Holdings (YETI) to Neutral from Buy. The analyst continues to see several long-term growth drivers, but now has less conviction in Yeti’s outlook for revenue outperformance as growth in core product categories and channels “has faded.” [read more]

5 Initiations: 

• Barclays initiated coverage of MGM Resorts (MGM) with an Overweight rating. MGM is a premium diversified global gaming operator at an attractive valuation with “multiple ways to win,” including Las Vegas strength, Macau recovery, new project pipeline and elevated share repurchases near-term, the analyst tells investors. [read more]

• Goldman Sachs initiated coverage of Erasca (ERAS) with a Buy rating. [read more]
• Scotiabank initiated coverage of HashiCorp (HCP) with a Sector Perform rating. HashiCorp’s position as “the control panel for large enterprises undergoing a seismic shift to the cloud is compelling,” but the firm sees the shares as appropriately valued and seeks more conviction around growth durability before recommending shares. [read more]
• Janney Montgomery Scott initiated coverage of ChargePoint (CHPT) with a Buy rating. [read more]
• Craig-Hallum initiated coverage of “bowling entertainment industry leader” Bowlero (BOWL) with a Buy rating and $24 price target. The firm highlighted a few reasons for their enthusiasm on Bowlero. [read more]

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Originally Posted February 24, 2023 – Street Wrap: Today’s 15 Upgrades, Downgrades, Initiations