Brinker upgraded, Snowflake downgraded: 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 Upgrades:

• KeyBanc upgraded Brinker (EAT) to Overweight from Sector Weight with a $72 price target. The 11% selloff in the shares post the earnings report presents a compelling entry point even as estimates are reset lower, the firm tells investors in a research note.
• Deutsche Bank upgraded Robinhood (HOOD) to Buy from Hold with a price target of $24, up from $21. The company’s growth potential is “exceptionally attractive,” the firm tells investors in a research note.
• UBS upgraded Medtronic (MDT) to Neutral from Sell with a price target of $90, up from $76. The firm now has higher conviction that the recent Diabetes turnaround is sustainable.
• Goldman Sachs upgraded Progressive (PGR) to Buy from Neutral with a price target of $262, up from $230, reflecting a 14% total return opportunity. The firm sees “stronger and more sustainable” policies in force growth at Progressive than what is reflected in Street estimates, driven by the company’s ability to materially increase advertising spend and by continued strong advertising spend efficiency.
• BofA upgraded PNC Financial (PNC) to Buy from Neutral with a price target of $200, up from $185. The firm sees the risk/reward as attractive and says meetings with CEO Bill Demchak and other senior executives increased confidence in PNC’s ability to navigate a range of macroeconomic outcomes while capitalizing on growth opportunities arising from potential market dislocations.

Top Downgrades:

• Wells Fargo downgraded Snowflake (SNOW) to Equal Weight from Overweight with a price target of $130, down from $200. The firm says Snowflake’s premium multiple is “tougher to defend” with its technology differentiation in question in a “rapidly evolving era of open data formats.”
• Argus downgraded Las Vegas Sands (LVS) to Hold from Buy. The firm sees the company being impacted by the weak consumer spending in China and the renovations to the Londoner in Macau while warning that the weakening in the retail business will weigh on results.
• BofA downgraded Pilgrim’s Pride (PPC) to Neutral from Buy with an unchanged price target of $47. The firm says incremental share upside “appears difficult” from here given increasingly difficult U.S. profitability comparisons in the second half of 2024, an improved supply situation as measured by egg sets which could put downward pressure on chicken pricing, and weaker seasonal period through year end.
• RBC Capital downgraded Kellanova (K) to Sector Perform from Outperform with a price target of $83.50, up from $76, following the announcement that Mars will acquire the company for $83.50 per share.
• JPMorgan downgraded Murphy Oil (MUR) to Neutral from Overweight with a price target of $47, down from $50. The firm cites its “more mixed fundamental” view of oil for the downgrade.

Top Initiations:

• Baird initiated coverage of Valvoline (VVV) with an Outperform rating and $48 price target. With several drivers to sustain positive mid-single-digit comps and an increasingly capital-efficient unit growth story, the “new” Valvoline offers investors high growth, improving free cash flow, and rising ROIC, the firm tells investors in a research note.
• Piper Sandler initiated coverage of Tyra Biosciences (TYRA) with an Overweight rating and $33 price target. The company’s expertise in FGFR biology positions it well to overcome key limitations of earlier generation FGFR inhibitors, the firm tells investors in a research note.
• Stifel initiated coverage of Advanced Energy Industries (AEIS) with a Buy rating and $135 price target. The firm believes the company’s “balanced portfolio” is capable of providing diversified revenue growth and improving cross-cycle profitability.
• Oppenheimer initiated coverage of Vaxart (VXRT) with an Outperform rating and $4 price target. The firm says its bullish thesis is driven by optimism on the company’s “differentiated” oral vaccine platform as well as two key programs that it is advancing – oral norovirus vaccine and oral COVID-19 vaccine.