Mobileye downgraded, Affirm 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 Upgrades:

• Wells Fargo upgraded Affirm (AFRM) to Overweight from Equal Weight with a price target of $52, up from $40. The company has “clearly demonstrated its right to win” increment e-commerce checkout market share for “years to come,” the analyst tells investors in a research note.
• JPMorgan upgraded Ferrari (RACE) to Overweight from Neutral with a price target of $525, up from $385, after meeting with management. The firm believes the company’s “idiosyncratic drivers of high visibility earnings growth” will increasingly be valued by investors amid growing macro, industry, and geopolitical uncertainty.
• BofA upgraded Kinder Morgan (KMI) to Buy from Neutral with a price target of $27, up from $23. Given uncertainty about energy, the firm sees value in contracted natural gas pipe companies and given demand pull from Gulf Coast LNG projects and AI/utility electrification, the firm argues that Kinder stands to benefit from contracted long-term growth.
• Northcoast upgraded United Natural Foods (UNFI) to Buy from Neutral.

Top Downgrades:

• Mizuho downgraded Mobileye (MBLY) to Neutral from Outperform with a price target of $13, down from $30. The firm sees challenges for Mobileye with weaker EyeQ and SuperVision expectations, and limited catalysts over the next 12-18 months.
• Wells Fargo downgraded Flywire (FLYW) to Equal Weight from Overweight with a price target of $18, down from $20. The firm says that while the stock’s valuation and company’s takeout potential should limit downside, rebuilding investor confidence will be a multi-quarter challenge for Flywire.
• Morgan Stanley downgraded Qorvo (QRVO) to Equal Weight from Overweight with a price target of $120, down from $130. The firm is citing a limited upside for the stock over the near term amid a weaker Android supply chain and weak broad market conditions, limiting the gross margin recovery that Morgan Stanley had been looking for.
• Seaport Research downgraded General Dynamics (GD) to Neutral from Buy with no price target as the firm “leans negative” into the company’s upcoming Q3 report. It has “been clear for some time” that there may be issues delivering G700s, says the firm, which is lowering estimates for the Aerospace division and adds “we’re not the first” to do so.
• DZ Bank downgraded General Motors (GM) to Hold from Buy with a $49 price target.

Top Initiations:

• Scotiabank initiated coverage of Meta Platforms (META) with a Sector Perform rating and $585 price target. The firm does not have a high level of confidence that consumers will use Meta’s services more in the future as it does for both Amazon.com (AMZN) and Alphabet (GOOGL).
• Pivotal Research initiated coverage of Amazon.com with a Buy rating and $260 price target. Amazon has a “deep moat” around its core businesses driven by “unmatched scale” and has what appears to be the largest organic revenue growth opportunity of any mega cap tech company, driven by the Web Services segment, the analyst tells investors in a research note.
• Scotiabank initiated coverage of Alphabet with an Outperform rating and $212 price target. The firm has a high level of confidence that consumers will use Alphabet’s services more in the future.
• Evercore ISI initiated coverage of Cardlytics (CDLX) with an In Line rating and $4 price target. Cardlytics has “built a strong moat around its core business” by securing partnerships with four of the five largest U.S. card issuers representing over 60% of U.S. card transaction volumes.
• KeyBanc initiated coverage of Evolent Health (EVH) with an Overweight rating and $35 price target as part of a broader research note launching coverage of Healthcare Services. The firm is bullish on Evolent’s strategy and long-term growth, noting that while the stock has pulled back in recent weeks, it believes the valuation is attractive.