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Roblox downgraded, Western Digital initiated: Wall Street's top analyst calls

The Fly
·4-min read
Roblox downgraded, Western Digital initiated: Wall Street's top analyst calls
Roblox downgraded, Western Digital initiated: 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:

  • Oppenheimer upgraded Sarepta Therapeutics (SRPT) to Outperform from Perform with an $180 price target. The firm believes a potential Elevidys label expansion is a "prelude" to Sarepta's pipeline in other muscular dystrophies and next-generation commercial products.

  • Deutsche Bank upgraded Edwards Lifesciences (EW) to Buy from Hold with a price target of $103, up from $86. The firm is increasingly confident in Edwards' ability to deliver 10% annual organic revenue with leveraged earnings growth of 15% over the next five years following an analysis of the company's structural heart end markets.

  • Jefferies upgraded Boston Beer (SAM) to Buy from Hold with a price target of $360, up from $335, following the firm's 11th bi-annual distributor survey. Hard Teas are dominating with relevant brands receiving 43% of honorable mentions and Twisted Tea "leading the way," while seltzer declines are slowing, the survey shows.

  • JPMorgan upgraded Planet Fitness (PLNT) to Overweight from Neutral with a price target of $78, up from $68. The firm cites increased confidence in Planet's long term growth trajectory for the upgrade.

  • Barclays upgraded Newell Brands (NWL) to Equal Weight from Underweight with a price target of $8, up from $7. The firm says many of the concerns outlined in its downgrade are mostly in the past or better understood by the Street.

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Top 5 Downgrades:

  • Roth MKM downgraded Roblox (RBLX) to Neutral from Buy with a price target of $35, down from $55. The company's "modest" Q1 bookings miss and a 3.5%-4% cut to its 2024 guidance were disappointing, the firm notes.

  • Wolfe Research downgraded Rapt Therapeutics (RAPT) to Peer Perform from Outperform without a price target. While Wolfe continues to believe that zelnecirnon may be a clinically and commercially competitive molecule worthy of blockbuster status, the amount of uncertainty surrounding the path to approval is too immense, and the sample size in the AD trial further revealed slow enrollment as an issue.

  • Barclays downgraded Oceaneering (OII) to Underweight from Equal Weight with a price target of $21, down from $22. The firm made adjustments to its offshore energy services coverage coming out of Q1 earnings.

  • Leerink downgraded AirSculpt Technologies (AIRS) to Market Perform from Outperform with a price target of $5, down from $8.25. The firm notes Q1 results were challenged with a 15% EBITDA miss, customer pricing sensitivity, and elevated customer acquisition costs.

  • Roth MKM downgraded Shimmick (SHIM) to Neutral from Buy with a price target of $3.50, down from $9. Q1 results were significantly below projections and the loss incurred triggered a covenant breach on its revolver, leading to a delayed 10-Q filing.

Top 5 Initiations:

  • Citi initiated coverage of Western Digital (WDC) with a Buy rating and $90 price target. Citi's positive view on Western Digital is based on a cyclical recovery in the storage industry coupled with the company's exposure to both hard disk drive and solid state.

  • Citi initiated coverage of Seagate (STX) with a Buy rating and $110 price target. Citi's industry checks suggest a sustained hard disk drive cyclical recovery from enterprise and hyperscalers, which it says should enable Seagate to sustain higher revenue and earnings growth ahead.

  • Morgan Stanley resumed coverage of GXO Logistics (GXO) with an Overweight rating and $70 price target following the completion of the Wincanton acquisition. GXO, which has grown revenue at a 13% compound annual growth rate from 2019-24, is "the best revenue growth story in Transports," says the firm, which views the long-term organic revenue growth story as supported by "a robust pipeline of new business and inorganic growth."

  • Evercore ISI initiated coverage of Regeneron (REGN) with an Outperform rating and $1,150 price target. Dupixent's growth and Eylea's resiliency enable substantial earnings and cash flow accretion, while Regeneron's broad pipeline offers enhanced optionality, the firm tells investors in a research note.

  • Siebert Williams initiated coverage of Centuri (CTRI) with a Buy rating and $32 price target. Comparable valuations are "somewhat disparate," and all the broad construction services group companies have some unique characteristics, but the firm believes Centuri "falls about in the middle of the pack on multiple comparable industry measures" and argues that current share valuation does not reflect fair value.