Texas Instruments, Generac 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.

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Top 5 Upgrades:

• Seaport Research upgraded Texas Instruments (TXN) to Buy from Neutral with a $400 price target. Rising data center power consumption and increasing electrical intensity per rack are driving a redesign of in-data-center power distribution systems, creating a significant growth opportunity for power analog semiconductors and potentially improving the sector’s margin profile, the firm tells investors in a research note.
• KeyBanc upgraded Zoom Communications (ZM) to Sector Weight from Underweight without a price target following Q1 results. The company outperformed KeyBanc’s expectations given its better margin expansion, “steadier performance” both down market and in the enterprise, continued capital return, and a “timely investment in a financial rocket ship” Anthropic, the firm tells investors in a research note.
• Argus upgraded Cava Group (CAVA) to Buy from Hold. The firm notes that restaurant traffic is improving and the stock trend has turned bullish.
• Truist upgraded Viking Holdings (VIK) to Buy from Hold with a price target of $102, up from $75. While stating it “admittedly missed Viking (so far) with our Hold rating and the valuation still makes us nervous should there be a hiccup in demand,” the firm says it cannot ignore what are “perhaps the strongest forward-looking demand trends” for luxury, river, and expedition cruises that it has observed in its research.
• Jefferies upgraded Generac (GNRC) to Buy from Hold with a price target of $302, up from $239. The company has “multiple shots on goal” for data center contract conversion, the firm tells investors in a research note.

Top 5 Downgrades:

• BofA downgraded Inspire Medical (INSP) to Underperform from Neutral with a price target of $39, down from $53. The firm sees higher risk to estimates without a smooth and consistent coding pathway for centers and does not see the stock working until there’s more clarity on coding.
• JPMorgan downgraded Endava (DAVA) to Underweight from Neutral with a price target of $5, down from $9. The firm cites the company reporting yet another earnings miss and guidance cut, further reinforcing investor skepticism around Endava’s revenue predictability and the company’s ability to execute.
• BofA downgraded Qfin (QFIN) to Neutral from Buy with a price target of $13.80, down from $42.58. While valuation “appears depressed” and the dividend yield “remains attractive,” prolonged regulatory headwinds and absence of buybacks leave the stock without a clear catalyst for a near-term re-rating, the firm tells investors.
• H.C. Wainwright downgraded Summit Therapeutics (SMMT) to Neutral from Buy without a price target. The firm is concerned by the continued absence of a more mature HARMONi-2 OS update.
• BofA downgraded Rio Tinto (RIO) to Neutral from Buy with an unchanged price target of 9,300 GBp. The firm cites the stock’s “full” valuation and slowing demand in China for the downgrade.

Top 5 Initiations:

• Loop Capital initiated coverage of American Express (AXP) with a Buy rating and $389 price target. The firm sees a “stable to improving” trajectory for the financials space and names American Express its top pick.
• BofA reinstated coverage of Oklo (OKLO) with a Buy rating and $80 price target. Oklo’s differentiated, vertically integrated “build-own-operate” model positions it as “a potential early leader” in small modular reactors, or SMRs, the firm tells investors.
• BofA reinstated coverage of NuScale Power (SMR) with a Neutral rating and $12 price target. The firm notes revenues remain tied to services, first reactor power is not expected until the early 2030s, and converting agreements to firm deals has been slower than anticipated.
• Bernstein initiated coverage of Jazz Pharmaceuticals (JAZZ) with a Market Perform rating and $229 price target. The firm believes investors should pass on Jazz because the current share price gives full credit for bullish outcomes regarding the company’s first big Oncology launch for Ziihera in biliary tract cancer and gastroesophageal cancer, positive outcome for Ziiherab’s high-risk EmpowHER-BC-303 Ph3 trial, and head-to-head competition vs Enhertu.
• Barclays rolled out coverage on the metals and mining sector. Investments in “transformative” technologies along with increased trade barriers are driving renewed growth for the group, and Barclays sees copper, rare earths, and uranium as key benefices of this backdrop. The firm’s preferred stock ideas are Freeport-McMoRan (FCX), Steel Dynamics (STLD), and MP Materials (MP). Joining these with Overweight ratings are Agnico Eagle (AEM), Hudbay Minerals (HBM), and Nucor (NUE).