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 Upgrades:
Argus upgraded Brinker (EAT) to Buy from Hold with a $150 price target. The firm cites the company's trends improving, as restaurant sales and traffic growth are moving higher. Improved performance reflects the management's streamlined efforts with its menu, increased prices, and greater investment in Brinker's staffing, while its simplified processes are generating better efficiencies in the kitchen and in the overall operations, Argus adds.
TD Cowen upgraded Despegar.com (DESP) to Hold from Sell with a price target of $19.50, up from $14, after Prosus, a large Dutch Internet-focused investment holding company spun out of Naspers, agreed to acquire the company for $19.50 per share in cash. The firm notes that Expedia (EXPE) owns 11% of Despegar shares, but adds that it does not expect a competing bid.
Top Downgrade:
Keefe Bruyette downgraded Brookline Bancorp (BRKL) to Market Perform from Outperform with a $14.50 price target to align with the firm's rating on Berkshire Hills Bancorp (BHLB) following the banks' merger-of-equals announcement. While the firm views the long-term impact on earnings from the combination "favorably," it expects this deal to extend the timeline towards the re-rating aspect of its stand-alone thesis for Brookline, likely leaving shares relatively range-bound the next few quarters.
Top Initiations:
Raymond James initiated coverage of ServiceNow (NOW) with an Outperform rating and $1,200 price target. The firm attempts to balance its positive long-term view on the business with an acknowledgement that near-term valuation is "challenging." However, Raymond James sees the relative valuation multiple holding as total company growth in the 20% range "should power the stock to outperform if this holds true."
Raymond James resumed coverage of Federal Signal (FSS) with an Outperform rating and $110 price target. The company's portfolio, which supports the essential municipal, utility and infrastructure markets, "provides good balance and defensiveness across the cycle," the firm tells investors.
D. Boral Capital initiated coverage of Avita Medical (RCEL) with a Buy rating and $25 price target. Avita's Recell technology has shown "promising results" in clinical trials for a variety of soft tissue and skin-related indications and Avita is "poised for significant growth" from expanding market penetration into trauma wounds, surgical wounds, and "slowly but surely chronic wounds" as awareness of the technology increases and adoption grows in hospitals and burn centers worldwide, the firm tells investors.
Brookline initiated coverage of Medicus Pharma (MDCX) with a Buy rating and $12 price target. Medicus is advancing D-MNA, a doxorubicin tip loaded dissolvable microarray needle array skin patch, in basal cell carcinoma through its subsidiary SkinJect, notes the firm, which sees a favorable risk-reward as D-MNA advances through the clinic.
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