SanDisk initiated, Analog Devices 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:

• Cantor Fitzgerald upgraded Analog Devices (ADI) to Overweight from Neutral with a price target of $270, up from $250. Analog Devices is a “best-in-class” analog company, with “outsized” industrial exposure which is preferential into the upcycle, the firm tells investors in a research note.
• Argus upgraded Jabil (JBL) to Buy from Hold. The company delivered a “sharp beat” on its revenue and earnings in Q3, also having returned to positive annual topline growth for the first time since Q3 of FY23, the firm says.
• Raymond James upgraded SmartStop Self Storage (SMA) to Strong Buy from Outperform with a price target of $44, up from $42. The firm says its “increased conviction” follows the company’s recent strong execution updates, notably the $180M of recently closed or under contract acquisitions.
• Morgan Stanley upgraded REV Group (REVG) to Equal Weight from Underweight with a price target of $46, up from $33. The firm cites REV’s better than expected price/cost dynamic, stronger than expected company throughput via operational efficiency, and strong product demand for the upgrade.
• Keefe Bruyette upgraded Genworth (GNW) to Outperform from Market Perform with a price target of $9, up from $8.50. The company could potentially recover $500M, or $1.25 per share, related to a European payment protection business it previously sold to AXA, and a counter lawsuit between AXA and Santander, the firm tells investors in a research note.

Top 5 Downgrades:

• Argus downgraded Norwegian Cruise Line (NCLH) to Hold from Buy. The firm believes that given the company’s “highly leveraged” position and vulnerability to weakening consumer spending and slowing economy, the stock’s current price is appropriate, the firm tells investors in a research note.
• TD Cowen downgraded Sarepta (SRPT) to Hold from Buy with a price target of $24, down from $62. The firm sees increased probability of withdrawal of Elevidys FDA approval for non-ambulatory and even ambulatory patients if Sarepta “continues to lose support” from the Duchenne muscular dystrophy community.
• RBC Capital downgraded Sunrun (RUN) to Sector Perform from Outperform with a price target of $5, down from $12, following the Senate reconciliation bill that preserves similar language to the House, including the proposed elimination of tax credits for residential solar leasing.
• Stifel downgraded Zoetis (ZTS) to Hold from Buy with a price target of $160, down from $165. The firm contends that the Street’s 2026/2027 operational revenue growth estimates for Zoetis may “prove aggressive” as it expects the company’s revenue growth rate to decelerate further and compress the stock’s multiple or at least prevent a further multiple expansion.
• LifeSci Capital downgraded Verve Therapeutics (VERV) to Market Perform from Outperform with a $12 price target after Eli Lilly (LLY) announced a definitive agreement to acquire the company. Jefferies and H.C. Wainwright also downgraded Verve Therapeutics to Neutral-equivalent ratings.

Top 5 Initiations:

• BofA initiated coverage of SanDisk (SNDK) with a Buy rating and $61 price target. Given the near-term supply-demand balance, the pricing environment for NAND flash memory is “increasingly positive over the next few quarters,” says the firm.
• Cantor Fitzgerald initiated coverage of Microchip (MCHP) with a Neutral rating and $70 price target. The firm is seeing signs that the cycle is turning with positive commentary generally across the Analog group, and says the group is under owned. Cantor Fitzgerald also started coverage of On Semi (ON) with a Neutral rating and $55 price target.
• Wolfe Research initiated coverage of Nordson (NDSN) with a Peer Perform rating and no price target. Nordson has “historically been viewed in the industrial compounder bucket,” but questions around the M&A flywheel and cyclical headwinds in medical and semi markets have caused the stock to lag, the firm tells investors.
• JPMorgan initiated coverage of Q2 Holdings (QTWO) with an Overweight rating and $115 price target. The firm says the company enjoys high customer retention and 5-7 year contract lengths, which support revenue visibility.
• JPMorgan initiated coverage of nCino (NCNO) with a Neutral rating and $30 price target. The firm notes nCino is undergoing a transition year with a lot of uncertainties.