Top 5 Upgrades:
Stifel upgraded NetApp (NTAP) to Buy from Hold with an unchanged price target of $75 after meeting with management. NetApp pointed to several company-specific initiatives and catalysts that should help boost margins and earnings in coming quarters, regardless of how the macro environment plays out, the analyst tells investors in a research note.
Northcoast upgraded McDonald's (MCD) to Buy from Neutral with a $321 price target.
Susquehanna upgraded TFI International (TFII) to Positive from Neutral with a price target of $135, down from $138. The firm says its upgrade is "not a call on the quarter," noting that its Q1 EPS estimates is 4% below consensus and that it sees risk of a full year guidance cut.
JPMorgan upgraded Northern Trust (NTRS) to Neutral from Underweight with a price target of $96.50, down from $97. The company should benefit from the recent banking sector turmoil through gaining deposits in its wealth management business.
UBS upgraded Western Union (WU) to Neutral from Sell following a 20% year-to-date stock decline. In the near-term, revenue growth will likely continue to be pressured by a difficult competitive environment and promotional pricing, but a recent recovery in digital transaction growth and stronger customer retention suggests Western Union may still generate revenue within its guided 2023 range of down 2%-4%, the analyst tells investors.
Top 5 Downgrades:
Keefe Bruyette downgraded Block (SQ) to Market Perform from Outperform with a price target of $75, down from $90. Block is facing a "growing number of risks" that will keep investors out of the name over the next year, primarily around rising competition in acquiring, and potential for regulatory scrutiny in Cash App, the analyst tells investors in a research note.
Goldman Sachs removed Norfolk Southern (NSC) from the firm's Conviction List but keeps a Buy rating on the shares with a price target of $257, down from $266. While the $10B in lost market cap since the Norfolk Southern derailment on February 3 could already be reflected in the share price, the company faces uncertainty surrounding the "all-in" legal ramifications, potential fines, lawsuits, and capex pressures due to possible increased regulatory pressure to add safety equipment and technology.
RBC Capital downgraded Incyte (INCY) to Sector Perform from Outperform with a price target of $79, down from $81. RBC's physician survey indicates that appetite for novel JAK inhibitors that could compete with Incyte's Jakafi may be higher than expected and moderate its medium-term growth, the analyst tells investors.
Evercore ISI downgraded Essex Property Trust (ESS) to In Line from Outperform with a price target of $236, down from $243. The firm didn't make any material changes to revenue or NOI growth across the apartment or single-family rental space as part of its Q1 residential REIT preview note, but it is downgrading Essex to In Line given adverse regulatory changes and additional tech job losses.
HSBC downgraded America Movil (AMX) to Hold from Buy with a price target of $21.50, down from $22.50. The analyst says fixed segment weakness "tempers" the mobile positivity in Mexico and Brazil.
Top 5 Initiations:
BTIG initiated coverage of GE HealthCare (GEHC) with a Neutral rating and no price target. With the shares up 34% since the spinoff, the firm sees "limited room for upside." GE HealthCare's organic growth in fiscal 2022 came out to 7.3% year-over-year, but on the back of an easier compare, the analyst tells investors in a research note.
Truist initiated coverage of Warner Bros. Discovery (WBD) with a Buy rating and $19 price target. The firm expects the HBO Max relaunch to drive renewed subscriber and average revenue per user momentum and for the company's multi-year deleveraging to support the equity value.
Seibert Williams initiated coverage of Southwestern Energy (SWN) with a Hold rating and $6 price target. Deals have made Southwestern among the largest domestic natural gas producers with critical scale in both Appalachia and the Haynesville shale, but these deals have left the company with above average net-debt/EBITDA leverage and "disadvantaged legacy hedges," said the firm.
Wedbush initiated coverage of Rallybio (RLYB) with an Outperform rating and $17 price target. The firm sees Rallybio holding a unique mix of differentiated assets and experienced management team that can execute on strategic goals and initiatives, the analyst tells investors in a research note.
JMP Securities initiated coverage of Ribbon Communications (RBBN) with an Outperform rating and $6 price target. The company is strategically positioned to benefit from several catalysts, such as the build-out of 5G networks and the modernization of legacy carrier networks, the analyst tells investors in a research note.