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

Tesla upgrade, General Motors downgrade, and Uber initiation among today’s top calls on Wall Street

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Research analysts at Wall Street’s largest banks issue recommendations on whether a stock should be bought, held, or sold. The Fly’s team of financial market experts scours hundreds of research notes daily to uncover the best trading ideas. Check out today’s top analyst calls from around Wall Street, compiled by The Fly.

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Top 5 Upgrades:

• Berenberg upgraded Tesla (TSLA). The firm believes Tesla’s new plants offer multi-year opportunity in capital and labor efficiency and thinks that ramping its battery cell production offers further economies of scale.
• Roth Capital upgraded Shopify (SHOP). The firm says tough COVID compares are now behind the company and that Shopify could see sales growth as high as 20% in 2023.
• Cowen upgraded Regeneron (REGN). Recent high-dose Eylea data has “altered the trajectory of Regeneron” and “re-secured” the future of the Eylea franchise, the firm says.
• Stifel upgraded Okta (OKTA), as the firm’s survey of 37 current customers revealed “generally happy” clients who support Okta’s broader identity swim-lane convergence strategy.
• Morgan Stanley upgraded Colgate-Palmolive (CL). The near 10% pullback in shares over the last month offers a buying opportunity “into a structurally attractive name,” the firm says.

Top 5 Downgrades:

• Berenberg downgraded General Motors (GM), pending a better entry point.
• Baird downgraded Varonis (VRNS). The firm believes the company’s transition to a SaaS model, which brings with it a lack of visibility, will weigh on its shares.
• BofA downgraded Fortune Brands Innovations (FBIN). Following the stock’s outperformance since the spinoff the company’s cabinet business, shares appear fully valued, the firm tells investors.
• Baird analyst Jonathan Komp downgraded Boot Barn (BOOT). While stating that the company’s fiscal Q3 report last week highlighted continued solid execution, the firm is tempering its bullish view with the stock up 38% year-to-date.
• Credit Suisse downgraded Saia (SAIA). The firm now sees more limited upside given the stock’s strong advance

Top 5 Initiations:

• MoffettNathanson initiated coverage of Uber (UBER) as it expects light bookings and adjusted EBITDA beats.
• MoffettNathanson initiated coverage of DoorDash (DASH). The firm’s thesis on DoorDash is long term in nature and supported by the firm’s outlook on unit economics in the core restaurant business.
• MoffettNathanson initiated coverage of Lyft (LYFT). Lyft’s diseconomies of scale on insurance, marketing, and driver supply make for a challenging outlook, the firm says.
• Wells Fargo initiated coverage of Accenture (ACN) despite a positive view of its platform and services. The firm sees clients becoming more cautious on tech spending and await stronger demand before getting more constructive.
• Goldman Sachs initiated coverage of Macy’s (M). The firm says the company’s strengthening execution and inventory management, coupled with its new initiatives to drive market share and profitability position Macy’s favorably. Goldman Sachs also initiated Nordstrom (JWN) with a Neutral rating and Kohl’s (KSS).

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Originally Posted January 30, 2023 – Street Wrap: Today’s Top 15 Upgrades, Downgrades, Initiations