General Motors upgraded, Oracle downgraded: Wall Street’s top analysts call
The hottest and market-moving research calls from 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:
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UBS upgraded General Motors (GM) from Neutral to Buy with a price target of $41, up from $41, as a new analyst took over coverage of the stock. Assuming a strike does not occur, the firm sees second-half earnings growth compared to consensus and argues that the current “downside” in shares creates an attractive risk/reward.
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Piper Sandler Upgraded umb financial (UMBF) from Neutral to Overweight with a $74 price target. The company cites its relatively discounted valuation compared to the shares’ historical premium compared to competitors.
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BofA upgraded southern company (SO) was raised from Underperform to Neutral with a price target of $67 from $68. The company says the shares have been re-rated and are now trading at a premium to most utility competitors pending updates, including specifically an update on Generation Capital, which Helps support the stock at current levels.
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Credit Suisse upgraded Vacuum (View) Down to $59, Outperform to Neutral with a price target of $47. The company sees Sealed Air as a major beneficiary of a soft-landing economic scenario in 2024 and currently sees the stock price in a bearish tailwind.
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Daiwa upgraded cognac (CGNX) Buy at Outperform with an unchanged price target of $57. The analyst told investors in a research note that an acceleration in battery investments as well as a reduction in logistics and electronics spending will boost the company’s growth in 2024.
Top 5 Downgrades:
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JP Morgan downgraded Oracle (ORCL) was cut from Overweight to Neutral with a price target of $112 from $100. The company’s cloud growth may have peaked as the Cerner transition and debt center buildout “creates new hurdles,” the analyst told investors in a research note.
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Goldman Sachs rating downgraded ultrapar (UGP) was lowered from $4.50 to Neutral with a price target of $4. Analysts cite valuation for downgrade after stock’s outperformance.
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Credit Suisse’s rating downgraded Ball Corporation (BALL) is lowered from $65 to Neutral with a price target of $58, given the shift in consumer spending away from this category as well as Ball’s exposure to Anheuser-Busch (BUD) in the mass bear category. There are more concerns about moving forward.
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Citi analyst Andres Cardona’s rating downgraded ecopetrol (EC) was upgraded to neutral from buy with an unchanged price target of $12.50 after the company hosted its investor day meeting. The company made “relatively small changes in the 2022 update”, perhaps adding some incremental emphasis to the energy transition agenda, but in practice the hydrocarbons business will remain the core business at least until the end of this decade and will be the “big change”, the analyst tells investors. Come after 2030.
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Credit Suisse’s rating downgraded oi glass (OI) was raised from Outperform to Neutral with a price target of $21 from $22. While destocking is playing a role, the company is concerned that further volume pressure on premium substrates like glass will continue and pricing pressures are likely to increase as new glass capacity comes online.
Top 5 Initiatives:
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UBS assumes coverage ford (F) with a Buy rating and a $15 price target as part of a broader research note on US auto, auto parts and auto-tech names. The group at large has sold off due to uncertainty surrounding the UAW-D3 labor negotiations, but the firm’s analysis shows that on average, about 4 weeks of strikes have been priced in at each of the D3 companies, and if Should a strike occur, this too shall pass, the analyst told investors in a research note.
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TD Cowen begins coverage JM Smucker (SJM) with an Outperform rating and a $158 price target. The analyst says that after strengthening its management team, reshaping its portfolio and sharpening its marketing, the company has created a profitable commercial model that is superior to food competitors.
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City started coverage Square meter (SQM) with a Buy rating and an $85 price target. The analyst told investors that SQM has been an underperformer in the local market and the current valuation “seems on the low side”.
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UBS begins coverage Tesla (TSLA) with a Neutral rating and a $290 price target as part of a broader research note on US auto, auto parts and auto-tech names. UBS says Tesla is well positioned for the long term, but the company prefers to wait for a better entry point, as 2024 is seen as a low-trend growth year.
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JP Morgan initiates coverage cactus (WHD) with a Neutral rating and a $60 price target. The company starts the stock at neutral as it thinks Street expectations will need to be reset slightly lower given the larger than expected decline in the US rig count.
Source: finance.yahoo.com
