Broadcom initiated, Beyond Meat 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 5 Upgrades:

• Melius Research upgraded GE Vernova (GEV) to Buy from Hold with a $740 price target. The firm sees upside to estimates over the next few years, and a longer tail seemingly developing on the need for power.
• Melius Research upgraded Eaton (ETN) to Buy from Hold with a price target of $495, up from $412. Concerns around valuation and slowing earnings momentum have dissipated given reaccelerating AI capex news flow and a less demanding valuation, while Melius has greater confidence that there will be more demand than supply even after capacity adds, the firm tells investors in a research note.
• Citi upgraded Union Pacific (UNP) to Buy from Neutral with a price target of $251, up from $250. The recent drop in the shares creates a “compelling” risk/reward profile, the firm tells investors in a research note.
• Raymond James upgraded Healthpeak Properties (DOC) to Outperform from Market Perform with a $20 price target. The firm cites the stock’s recent underperformance relative to peers, driven by a large Q2 occupancy decline in the life science segment, and expectations for limited downside to life science fundamentals going forward for the upgrade.
• National Bank upgraded OpenText (OTEX) to Outperform from Sector Perform with a price target of $45, up from $34, after hosting investor meetings with management. The firm sees a “renewed investment opportunity in what had been an orphaned name.”

Top 5 Downgrades:

• Argus downgraded Beyond Meat (BYND) to Sell from Hold. The company’s growth has been hit by increased competition, adverse changes in consumers’ perceptions about the health attributes of Beyond Meat products and by termination fees from co-manufacturers, the firm tells investors in a research note.
• Rothschild & Co Redburn downgraded Under Armour (UAA) to Neutral from Buy with a price target of $6, down from $7. The firm admits to being too optimistic about the company’s turnaround.
• Wedbush downgraded Builders FirstSource (BLDR) to Neutral from Outperform with a $145 price target. The firm notes the shares are within 5% of its unchanged price target, and Wedbush does not see a developing catalyst to lift it.
• Raymond James downgraded Healthcare Realty Trust (HR) to Underperform from Market Perform without a price target. The firm cites the stock’s recent outperformance relative to peers following the company’s new strategic plan for the downgrade.
• Citi downgraded Prosperity Bancshares (PB) to Neutral from Buy with a price target of $68, down from $78. The firm believes the rise in regional bank acquisition pricing likely eliminates Prosperity from doing a large enough deal to justify a higher valuation for the shares.

Top 5 Initiations:

• Macquarie initiated coverage of Broadcom (AVGO) with an Outperform rating and $420 price target. Broadcom’s ASIC technology is growing faster than GPU, driven by adoption among hyperscalers and vertical AI markets, the firm tells investors in a research note.
• Seaport Research initiated coverage of CoreWeave (CRWV) with a Neutral rating. In the near term, the neocloud space will benefit from strong demand from hyperscalers for extra GPU and electricity capacity, but business models will matter as the space consolidates over the longer term, the firm tells investors.
• Wells Fargo initiated coverage of Microchip (MCHP) with an Equal Weight rating and $60 price target. The company offers higher earnings recovery potential relative to peers, but this is already priced into the shares, the firm tells investors in a research note.
• Keefe Bruyette initiated coverage of Bullish (BLSH) with a Market Perform rating and $55 price target. Bullish offers investors a “unique opportunity” to own a “highly regulated” digital assets exchange business set to undergo near-term expansion efforts in the United States, but the stocks’ valuation keeps Keefe on the sidelines at this time.
• JPMorgan initiated coverage of Regal Rexnord (RRX) with an Overweight rating and $200 price target, representing 40% upside. The firm has conviction in the company’s transformation from a legacy parts vendor to an “innovative, integrated industrial solutions powerhouse.”