TJX downgraded, Crocs 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:
Williams Trading upgraded Crocs (CROX) to Buy from Hold with a price target of $163, up from $135. The announcement that actress Sidney Sweeney was engaged as HeyDude's brand ambassador and global spokesperson will successfully attract young consumers and bring needed attention to the brand, the firm tells investors in a research note.
Piper Sandler upgraded Estee Lauder (EL) to Overweight from Neutral with a price target of $114, up from $95. The firm came away from Monday's fiscal Q4 earnings report and estimate reset "far more comfortable" with the stock's current valuation levels.
BofA double upgraded Unilever (UL) to Buy from Underperform with a price target of $72, up from $47. The firm believes the company's annual organic growth will reach 4.6% through 2027 on the back of stronger underlying growth and market share improvement, accelerating annual sales growth to 10% through 2026 from 1.5% 2020 through 2023.
Wells Fargo upgraded SentinelOne (S) to Overweight from Equal Weight with a price target of $29, up from $19. The firm believes SentinelOne is gaining share, recently at the expense of CrowdStrike (CRWD) following the global outage in mid-July, which should translate into stronger revenue growth.
Northland upgraded Select Water Solutions (WTTR) to Outperform from Market Perform with a $14.50 price target based on increased confidence in the company's water infrastructure growth strategy after attending an industry conference.
Top 5 Downgrades:
Citi downgraded TJX (TJX) to Neutral from Buy with a price target of $128, up from $110. The firm believes TJX's risk/reward is now more balanced, driving the downgrade to Neutral.
Telsey Advisory downgraded Urban Outfitters (URBN) to Market Perform from Outperform with a price target of $44, down from $49. While noting that Urban Outfitters delivered a second consecutive quarter of better-than-expected sales, gross margin, and expense control, the firm says that the comp miss "disappointed," with underperformance at all three key brands relative to market expectations.
KeyBanc downgraded Sprout Social (SPT) to Underweight from Sector Weight with a $28 price target. The company is facing a weaker bookings year "than even the sharply slower reported numbers imply," the firm tells investors in a research note.
BMO Capital downgraded Goosehead Insurance (GSHD) to Market Perform from Outperform with an unchanged price target of $90. The downgrade is based on a near-term view that the company's profit margins could come under incremental year-over-year pressure as Goosehead leans into its improved hiring strategy, the firm tells investors in a research note.
Piper Sandler downgraded Assurant (AIZ) to Neutral from Overweight with an unchanged price target of $200. The firm cites valuation for the downgrade, saying the catalysts it was expecting have now played out.
Top 5 Initiations:
Northland initiated coverage of Palantir Technologies (PLTR) with a Market Perform rating and $35 price target. The company's artificial intelligence operating system, powered by its Ontology software, "overcomes myriad roadblocks" to adoption and is igniting AI use across the enterprise landscape, the firm tells investors in a research note.
Morgan Stanley initiated coverage of Tandem Diabetes (TNDM) with an Equal Weight rating and $45 price target. Tandem's growth and margins look poised to benefit from the ongoing Mobi launch and expansion into pharmacy and the Type 2 indication, but competitive pressures are mounting and could "more than offset these factors," says the firm.
Scotiabank initiated coverage of CubeSmart (CUBE) with an Outperform rating and $53 price target. CubeSmart is a real estate investment trust investing in self-storage facilities across the United States, notes the firm, which expects housing mobility, a key driver of self-storage demand, to slightly improve through 2025.
Morgan Stanley initiated coverage of Flutter Entertainment U.S. shares (FLUT) with an Overweight rating and $247 price target. Flutter has a "compelling" global long-term growth story, and it is the scale leader in online gambling, three-times larger than its nearest peers by revenue, the firm tells investors in a research note.
Wells Fargo initiated coverage of Disc Medicine (IRON) with an Overweight rating and $75 price target. The firm says regulatory clarity for bitopertin is an important fundamental near-term driver for the shares and the Phase 3 has a higher probability of success than implied at current valuation levels.