Target initiated, Nike 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:

• RBC Capital upgraded Nike (NKE) to Outperform from Sector Perform with a price target of $90, up from $76. The firm sees a “steeper revenue recovery” for Nike than Street estimates reflect with new product contribution and World Cup selling.
• Needham upgraded Amicus (FOLD) to Buy from Hold with a $14 price target. The FDA’s decision to no longer require a panel meeting for Travere’s (TVTX) Filspari, coupled with last year’s Parasol recommendation and Dimerix’s prior Type C meeting with the FDA, indicate reduction in proteinuria is a suitable primary endpoint for full approval in focal segmental glomerulosclerosis, the firm says, adding that this should lower the regulatory risk for Amicus’ DMX-200.
• Goldman Sachs upgraded Stepstone Group (STEP) to Buy from Neutral with a price target of $83, up from $64. The firm expects the company to grow management fees at a 25% CAGR from 2024-28, underscored by robust growth in the Private Wealth business, an upcoming flagship fundraising cycle, and record levels of shadow AUM benefiting SMA growth, the firm tells investors in a research note.
• RBC Capital upgraded CSX (CSX) to Outperform from Sector Perform with a price target of $39, up from $37. The firm views CSX shares as well positioned under any consolidation scenario in the railroad sector.
• Scotiabank upgraded Vale (VALE) to Outperform from Sector Perform with a price target of $14, up from $12.50. The firm views the company as well positioned to benefit from the “decarbonization wave when it finally arrives.”

Top 5 Downgrades:

• UBS downgraded Dropbox (DBX) to Sell from Neutral with a price target of $27, down from $29, after a transfer in coverage. The firm’s channel checks show “negative demand signals” for Dropbox Dash, the company’s new artificial intelligence product, as well as continued pressure on its core file, sync, and share business.
• Wells Fargo downgraded Progressive (PGR) to Equal Weight from Overweight with a price target of $265, down from $327, following the August earnings report. The firm cites slowing policies in force growth for the downgrade, with the August growth missing estimates.
• Wolfe Research double downgraded Floor & Decor (FND) to Underperform from Outperform with a $76 price target after a transfer in coverage of the name. Flooring demand remains weak, and the company’s new stores are lagging prior cohorts, the firm tells investors in a research note.
• Rothschild & Co Redburn downgraded Tradeweb Markets (TW) to Neutral from Buy with a price target of $129, down from $157. Tradeweb’s premium valuation to MarketAxess (MKTX) has begun to erode in recent months, suggesting the market has concerns about challenges in fixed-income trading and the company’s growth outlook, the firm tells investors in a research note.
• H.C. Wainwright downgraded Innate Pharma (IPHA) to Neutral from Buy without a price target. The company is prioritizing three assets, IP4502, lacutamab, and monalizumab, which do not have meaningful catalysts in the next 12 months, the firm tells investors in a research note.

Top 5 Initiations:

• Wolfe Research initiated coverage of Target (TGT) with an Underperform rating and $80 price target. After persistent share losses and weak execution, Target will need to make a significant reinvestment in labor, capital expenditures, and advertising to sustainably improve same-store sales momentum, the firm tells investors in a research note. Wolfe also started Walmart (WMT), Home Depot (HD), Lowe’s (LOW), Five Below (FIVE), Dollar General (DG) and O’Reilly Automotive (ORLY) with Outperform ratings, and Dollar Tree (DLTR) and Advance Autor (AAP) with Peer Perform ratings.
• Bernstein initiated coverage of Deckers Outdoor (DECK) with an Underperform rating and $100 price target. Both of the company’s brands, Hoka and Ugg, are slowing, driving down sales growth and putting pressure on margins, the firm tells investors in a research note.
• Rothschild & Co Redburn initiated coverage of Zimmer Biomet (ZBH) with a Buy rating and $130 price target. The firm believes Zimmer’s renewed product portfolio and increased investment should support growth acceleration and the stock’s re-rating.
• BofA initiated coverage of AeroVironment (AVAV) with a Buy rating and $300 price target. The firm sees the developer of autonomous systems having “strong opportunities for growth.”
• BTIG initiated coverage of Abercrombie & Fitch (ANF) with a Buy rating and $120 price target. The firm acknowledges Abercrombie’s headwinds from a selective consumer and tough comparisons, but has confidence in its ability to return to growth. BTIG also started coverage of American Eagle (AEO) with a Neutral rating with no price target.