Here are Friday’s biggest calls on Wall Street:
Top 5 Upgrades:
Wells Fargo upgraded DuPont (DD) to Overweight from Equal Weight with a price target of $103, up from $80. The analyst expects multiple expansion over the next 12-24 months should be driven by the company's tax-free separation into three separate public companies.
Mizuho upgraded NXP Semiconductors (NXPI) to Buy from Neutral with a price target of $325, up from $265, as part of a broader research note on Semiconductors. After 2-3 years of underperformance, the Analog group has baked in the expected 2023-2024 slowdown, which could start catching up with the Semis index as inventories peak and as utilization gets cut across the supply chain, the firm says.
Citi upgraded Gannett (GCI) to Neutral from Sell with a price target of $3.60, up from $1.95.The upgrade is based on more robust revenue trends within the company's digital segment, the analyst tells investors in a research note.
Stifel upgraded Saia (SAIA) to Buy from Hold with a price target of $475, down from $526. Stifel says the company reported "soft" Q1 results wtih a "modest" earnings miss on April 26th, and the stock has since continued to lose steam.
BMO Capital upgraded Criteo (CRTO) to Outperform from Market Perform with a price target of $45, up from $31. The analyst cites the company's recent execution and more meaningful growth opportunities from the Retail Media and Performance Media segments going forward for the upgrade.
Top 5 Downgrades:
Citi downgraded Cintas (CTAS) to Sell from Neutral with a price target of $570, up from $530. Thanks to an improved U.S. macroeconomic outlook and better-than-expected earnings growth driven significantly by margin expansion, Cintas stock has re-rated to now a 43-times earnings multiple, which is "well above any multiple in its history" and screens as expensive across peers, the analyst tells investors in a research note.
Lake Street downgraded Domo (DOMO) to Hold from Buy with a price target of $8, down from $15. Assuming Domo achieves its guided $70M billings in Q2, it will have posted negative billings comps in four of the last six quarters, notes the firm, which reduced its forecast as well as its rating and price target.
BTIG downgraded EnerSys (ENS) to Neutral from Buy with no price target after the company reported Q4 earnings yesterday. With the stock up about 25% over the past year, the firm moves to the sidelines, citing valuation.
Northland downgraded Emeren (SOL) to Underperform from Market Perform with a $1.50 price target following what the firm calls "another disappointing quarter." With a new auditor set to step in after the abrupt resignation of the prior auditor and a 2023 10-K not expected for several more months, the firm sees the potential for write-downs and impairments and/or other factors to lower the book value.
DZ Bank downgraded Nvidia (NVDA) to Hold from Buy with a $1,025 price target.
Top 5 Initiations:
Wedbush last night initiated coverage of Shift4 Payments (FOUR) with a Neutral rating and $75 price target. Earlier this year, management undertook a strategic review, which would have possibly included a sale, which hasn't materialized, the analyst tells investors in a research note.
Wedbush initiated coverage of Toast (TOST) with an Outperform rating and $30 price target. Given Toast's "robust" location expansion in the U.S. as well as nascent overseas success and recent improvements in operating and financial metrics, the company is well positioned to post 30% year-over-year gross profit and adjusted EBITDA growth in 2024 and 2025, respectively, the firm says.
Morgan Stanley initiated coverage of Leonardo (DRS) with an Equal Weight rating and $26 price target. The Defense pureplay in a "scarce pool of mid-tiers" has the Columbia-class submarine as "a strong anchor program," but lift potential from better contracts appears priced in, the analyst tells investors.
Craig-Hallum assumed coverage of Napco Security (NSSC) with a Buy rating with a price target of $65, up from $50. Napco Security delivered strong Q3 results in early May that included record quarterly revenues and nearly 30% growth in recurring revenues, and is positioned as the "One Stop Shop" offering within the $90B Commercial Security, Intrusion & Alarm, Access Control, Locking and Communications market that is seeing secular growth, the analyst tells investors in a research note.
Lake Street assumed coverage of SoundThinking (SSTI) with a Buy rating and $21 price target. The firm expects SoundThinking to continue to grow its gunshot detection footprint, but also believes investors are underappreciating additional growth drivers in the company's SafetySmart product portfolio.
