Toast downgraded, Lowe’s 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:

• Citi upgraded Lowe’s (LOW) to Buy from Neutral with an unchanged price target of $285. Lowe’s should top Q1 consensus estimates and continue to outperform the industry, the firm tells investors in a research note.
• BofA upgraded Autodesk (ADSK) to Buy from Neutral with a $300 price target after reinstating coverage of the name. Autodesk’s data, 3D context, and decade-long AI investment give it “structural advantages that are hard to replicate,” says the firm, which also notes that the company has pursued a multi-year go-to-market modernization and technology transition to be “appropriately positioned for AI.”
• JPMorgan upgraded Celanese (CE) to Overweight from Neutral with an unchanged price target of $68. The firm cites valuation for the upgrade with the shares down 14% in the last week.
• Truist upgraded Matador (MTDR) to Buy from Hold with a price target of $67, up from $60. The stock pullback since the Q1 report offers an attractive entry point, the firm tells investors in a research note.
• Craig-Hallum upgraded FormFactor (FORM) to Buy from Hold with a $175 price target following the company’s Investor Day and updated target model.

Top 5 Downgrades:

• Rothschild & Co Redburn downgraded Toast (TOST) to Neutral from Buy with a $35 price target. The firm sees the company’s growth being at risk from DoorDash’s (DASH) planned U.S. rollout of in-store restaurant point-of-sale technology.
• Piper Sandler downgraded ZoomInfo (GTM) to Underweight from Neutral with a price target of $4, down from $7, following quarterly results. The firm believes ZoomInfo faces multiple headwinds and that its transition to usage will take time while introducing more risk. BTIG, Stifel and Canaccord also downgraded ZoomInfo but to Neutral-equivalent ratings.
• Raymond James downgraded GitLab (GTLB) to Market Perform from Outperform without a price target. The firm says that while investors “may breathe a near-term sigh of relief” with the reaffirmed Q1 outlook, “meaningful” changes create risk for the remainder of the year.
• RBC Capital downgraded Array Digital (ARAY) to Sector Perform from Outperform with a price target of $52, down from $54. The firm attributes its rating change to reduced organic revenue growth expectations, partially offset by cost efficiencies.
• Piper Sandler downgraded Lenz Therapeutics (LENZ) to Neutral from Overweight with a price target of $12, down from $39, following the Q1 report. The company’s pace of new patient starts and routine prescribing remains more gradual than expected, the firm tells investors in a research note.

Top 5 Initiations:

• Benchmark initiated coverage of Insulet (PODD) with a Buy rating and $250 price target. The firm sees an attractive valuation at current share levels and says concerns of competition are overblown given the “large, underserved” type 2 diabetes market.
• Benchmark initiated coverage of DexCom (DXCM) with a Buy rating and $77 price target. The company is positioned for margin expansion over the next two years as it launches a new continuous glucose monitor sensor, the G7 15 Day, the firm tells investors in a research note. Benchmark also started coverage of MiniMed (MMED) with a Buy rating and $20 price target.
• Benchmark initiated coverage of Tandem Diabetes (TNDM) with a Hold rating and no price target. The company is undertaking an “ambitious strategy” to simultaneously shift its domestic and international businesses to new sales and distribution channels, a transition that “will not be without pain,” says the firm.
• Goldman Sachs initiated coverage of Aevex (AVEX) with a Buy rating and $34 price target. The firm says Aevex offers an opportunity to invest in a defense technology company that sells into a “rapidly growing” drone end market. Baird, Jefferies, Needham, William Blair, BofA, Raymond James, JPMorgan and RBC Capital also started coverage of the stock with Buy-equivalent ratings.
• JPMorgan initiated coverage of Alamar Biosciences (ALMR) with an Overweight rating and $30 price target. JPMorgan views the stock’s current premium valuation as justified and sees room for upside from current levels. Stifel, Leerink and TD Cowen also started coverage of the stock with Buy-equivalent ratings, while BofA initiated the name with a Neutral.