This Week, From The Analyst Community

Stock analysts can provide valuable insight into the sentiment around a certain stock or sector and shed some light on what is possible or likely for a stock.  Stirring in the analyst community can sometimes be early signs of stock movement.  Which is why our team reviews dozens of analyst research reports each and every day with the goal of finding new investment ideas for our readers. 

Of the hundred of reports we reference weekly, some stand out among the others for various reasons.  Our team has sifted through this week’s reports and whittled it down to the most pertinent moves.   

Read on for the details on some of the most impactful actions taken by brokerage firms over the past week.   

Tuesday, February 22nd

  • Bernstein analyst Stacy Rasgon upgraded AMD (AMD) to Outperform from Market Perform with a price target of $150. With the combination of continued stellar execution, increasingly bankable earnings power, and a recent sizeable pullback making valuation downright attractive the analyst is, for the first time in almost a decade, pulling the trigger and upgrading the stock to Outperform.
  • Wells Fargo analyst Daniel Politzer downgraded DraftKings (DKNG) to Equal Weight from Overweight with a price target of $19, down from $41. The analyst noted that his downgrade is company specific and reflects his growing concern on DraftKings’ path to profitability given its fast-growing operating expenses. Meanwhile, Roth Capital analyst Edward Engel upgraded DraftKings to Neutral from Sell with a price target of $19, down from $23.
  • MP Securities analyst Trevor Walsh downgraded Splunk (SPLK) to Market Perform from Outperform with no price target after assuming coverage of the name. The analyst cited continued challenges around pricing, management turnover, and shifting demand within the SIEM and IT Operations Analytics markets, which he believes “creates uncertainty” around Splunk’s future growth prospects.

Wednesday, February 23rd

  • Deutsche Bank analyst Bryan Keane downgraded Rackspace Technology (RXT) to Hold from Buy with a price target of $9, down from $21. The company delivered “solid” fourth quarter results but the fiscal 2022 guidance was well below expectations for revenue growth, margins and free cash flow, Keane noted. BMO Capital analyst Keith Bachman also downgraded Rackspace Technology to Market Perform from Outperform with a price target of $10.50, down from $18.
  • BMO Capital analyst Daniel Salmon initiated coverage of DoubleVerify (DV) with an Outperform rating and $37 price target. The analyst believes the company “offers a greater degree of safety from regulatory and platform change risk” and features an emerging connected TV business along with growth opportunities across both the open web and walled gardens. Meanwhile, JPMorgan analyst Mark Murphy downgraded DoubleVerify to Neutral from Overweight with a price target of $32, down from $42.

Thursday, February 24th

  • Argus analyst Kristina Ruggeri upgraded Under Armour (UAA) to Buy from Hold with a $19 price target. The company’s close inventory management, avoiding of product discounting, and boosted direct-to-consumer sales have improved its results, the analyst told investors in a research note.
  • Erste Group analyst Hans Engel downgraded Meta Platforms (FB) to Hold from Buy. While Facebook invested 21.7% of revenue in research and development in the last quarter and the intended reorientation toward virtual products and services offers new earnings potential in the future, the analyst notes the development of the new advertising revenues is associated with high costs which are difficult to forecast.

Friday, February 25th

  • Daiwa analyst Jairam Nathan upgraded Tesla (TSLA) to Outperform from Neutral with a price target of $900, down from $980. The analyst says renewed supply chain concerns combined with higher oil prices enhance Tesla’s competitive advantage over legacy internal combustion engines.
  • Wells Fargo analyst Edward Kelly upgraded Dollar General (DG) to Overweight from Equal Weight with an unchanged price target of $220. The recent selloff in the shares “provides patient investors with an attractive buying opportunity,” Kelly tells investors in a research note.
  • Benchmark analyst Mike Hickey initiated coverage of Curaleaf (CURLF) with a Buy rating and $12 price target. Curaleaf offers investors a multi-state vertically integrated cannabis operator at a “compelling valuation,” Hickey tells investors in a research note.