Lululemon downgraded, Samsara upgraded: 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: 

• Craig-Hallum upgraded Samsara (IOT) to Buy from Hold with a price target of $48, up from $42, stating that the “tariff pause” is now behind the company and the international business is now growing faster than the U.S.
• Truist upgraded Crown Holdings (CCK) to Buy from Hold with an unchanged price target of $118. Crown shares have declined nearly 8% since August 28 despite the lack of any specific actionable company news, notes the firm, which sees a more attractive entry point as a result of the selloff.
• Scotiabank upgraded Healthcare Realty Trust (HR) to Outperform from Sector Perform with a price target of $20, up from $18. The firm expects Healthcare Realty’s valuation to expand as it returns funds from operations growth by executing on its turnaround plan under new CEO Peter Scott.
• Baird upgraded Duluth Holdings (DLTH) to Outperform from Neutral with a price target of $7, up from $2. The company’s Q2 results were much stronger than expected due to actions to reduce promotions, raise average unit retails, and improved profitability, the firm tells investors in a research note.
• Citi upgraded State Street (STT) to Buy from Neutral with a price target of $130, up from $115, as part of a broader U.S. research note on Trust Banks. The return profiles of trust banks are impacted by volatility in the global market, but the firm sees an “attractive opportunity” in State Street to drive organic fee growth while maintaining expense discipline to deliver positive operating leverage.

Top 5 Downgrades: 

• Oppenheimer downgraded Lululemon (LULU) to Perform from Outperform and removed the firm’s price target on shares, formerly $500. Oppenheimer notes the company posted generally softer-than-planned Q2 results and meaningfully lowered guidance for FY25. BofA, Evercore ISI, William Blair, Stifel and Telsey also downgraded the stock to Neutral-equivalent ratings.
• HSBC downgraded Credicorp (BAP) to Hold from Buy with a price target of $255, up from $225. The firm has doubts regarding the company’s increased long-term return on average equity target of 19.5%.
• UBS downgraded J.B. Hunt (JBHT) to Neutral from Buy with a price target of $157, up from $155. The firm believes a pricing inflection in the truckload market is now less likely in the near term.
• B. Riley downgraded Ciena (CIEN) to Neutral from Buy with a price target of $113, up from $90. The firm cites valuation for the downgrade following yesterday’s post-earnings rally.
• Loop Capital downgraded FirstCash (FCFS) to Hold from Buy with an unchanged price target of $145. The firm cites valuation for the downgrade.

Top 5 Initiations: 

• BofA initiated coverage of Paramount Skydance (PSKY) with an Underperform rating and $11 price target. While the firm believes Paramount Skydance has the potential to be a dynamic global media company, it adds “there are no easy fixes and a turnaround such as this will take a significant amount of time,” pointing to Warner Bros. Discovery (WBD) as evidence that the restructuring will likely take years to implement, require substantial investment and investor patience.
• Baird initiated coverage of Duolingo (DUOL) with a Neutral rating and $280 price target. The firm says Duolingo has built a “very effective product and a globally recognized brand,” but Baird hesitates to recommend the shares due to competitive risks in the category.
• Erste Group reinstated coverage of TJX (TJX) with a Buy rating. TJX has a “much higher” return on equity and a “significantly higher” operating margin compared to its competitors, the firm tells investors.
• Raymond James initiated coverage of QXO (QXO) with an Outperform rating and $28 price target. QXO, with the acquisition of Beacon Roofing, now has a platform within building products distribution to support its long-term goal of becoming a $50B revenue company, the firm tells investors in a research note.
• Baird initiated coverage of TKO Group (TKO) with an Outperform rating and $225 price target. TKO is well-positioned at the intersection of key themes in the media landscape, and the range of partnerships will bolster the long-term value of brands across the portfolio, the firm says.