Here is a summary of the most discussed and market-moving analyst research report ratings from Wall Street. The following are the day's latest key rating changes compiled by The Fly that investors should focus on.
Top Upgrades Argus upgraded BHP Billiton (BHP) from 'Hold' to 'Buy,' setting a price target of $68. The firm stated that the prices of iron ore, copper, and coal, which drive BHP's performance, are 'continuing to strengthen alongside the global economic recovery.' From a technical perspective, BHP's stock price has reversed its bearish trend of consistently lower highs and lows observed since March 2022.
Top Downgrades RBC Capital downgraded DigitalBridge Group, Inc. (DBRG) from 'Outperform' to 'Sector Perform,' reducing its price target from $23 to $16. This follows SoftBank's announcement of an all-cash acquisition of DigitalBridge at $16 per share, valuing the entire enterprise at $4 billion. Additionally, B. Riley and TD Cowen concurrently downgraded their ratings to an equivalent 'Neutral' level.
Jefferies downgraded Mereo Biopharma Group Plc (MREO) from 'Buy' to 'Hold,' slashing its price target dramatically from $7 to $0.50. The firm informed investors in its report that Mereo's drug, setrusumab, failed to meet the primary endpoints in both the ORBIT and COSMIC clinical trials, leading to a sharp decline in the stock prices of both Mereo and Ultragenyx Pharmaceutical (RARE). Jefferies believes Ultragenyx could potentially rebound by 2026, as investors are optimistic about the Phase 3 trial data readout for its Angelman syndrome drug. However, the path forward for Mereo is considered higher risk—its development pipeline still relies on the European Medicines Agency's Exceptional Use Authorization pathway and requires a partnership with Aevitas to advance.
Top Initiation of Coverage Stephens initiated coverage on CommVault (CVLT) with an 'Overweight' rating and a $162 price target. The firm's report notes that CommVault is a long-established leader in the data protection space, successfully pivoting to capture new opportunities in modern data protection while executing a dual transformation: upgrading its platform technology and shifting its business model towards Software-as-a-Service.
Stephens initiated coverage on Rubrik Inc. (RBRK) with an 'Overweight' rating and a $105 price target. The firm stated that Rubrik has favorable growth prospects in the data protection and data security markets, with potential for margin expansion to synergize with revenue growth.
Stephens initiated coverage on Varonis (VRNS) with an 'Equal Weight' rating and a $40 price target. The firm said that, supported by strong long-term industry trends, Varonis has considerable growth potential in the data security space; as an established industry leader, the company has now transformed into a data analytics security platform centered on Software-as-a-Service.
Freedom Capital initiated coverage on Ero Copper (ERO) with a 'Buy' rating and a $32 price target. The firm indicated that Ero Copper's asset portfolio features high grades and low costs, with operations concentrated in Brazil—a country known for its favorable mining regulatory policies and abundant mineral resource reserves.
Hayden Wight initiated coverage on Terra Innovatum Global NV (NKLR) with a 'Buy' rating and a $25 price target. The firm believes the company's use of standardized components from mature supply chains for its R&D could significantly reduce the regulatory and technical barriers typically faced by advanced nuclear reactor developers.
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