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.   

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Monday, March 21st

• Argus analyst Kristina Rugerri upgraded Interpublic Group (IPG) to Buy from Hold with a $41 price target. The analyst is positive on the company’s increased demand for its digital offerings amid recent trends in e-commerce and data analytics since the onset of the pandemic while also noting its “attractive” 3.2% dividend and reinstated buyback program.

• Piper Sandler analyst Rob Owens downgraded Check Point Software (CHKP) to Underweight from Neutral with an unchanged price target of $130. The company posted a strong fourth quarter from a beat perspective, but still showed a relatively modest growth rate and an “in the range” revenue result, Owens told investors in a research note.

Tuesday, March 22nd

• Jefferies analyst Chris Howerton initiated coverage of Iveric bio (ISEE) with a Buy rating and $27 price target. Iveric’s lead asset, Zimura, is in a final Phase 3 trial for Geographic Atrophy, or GA, and he sees a clear path for the drug to be one of the first therapies approved to treat this form of irreversible vision loss.

• BTIG analyst Gray Powell initiated coverage of Datadog (DDOG) with a Buy rating and $175 price target. The analyst sees the observability market benefiting over the next few years as companies increasingly invest in digital transformation initiatives and thinks Datadog is “winning across multiple product categories.”

• Bernstein analyst Harshita Rawat initiated coverage of Toast (TOST) with a Market Perform rating and $19 price target. Calling it a market share gainer in an intensely competitive restaurant point of sale and payments market, the analyst noted that continued market share gains are “indeed highly likely” given Toast’s magic formula of deep vertical expertise, superior product, and efficient sales force.

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Wednesday, March 23rd

• Northland analyst Greg Gibas downgraded Gan Limited (GAN) to Market Perform from Outperform after the company reported fourth quarter revenue and EBITDA that missed expectations and set its 2022 outlook below his and consensus estimates.

• BTIG analyst Carl Reichardt downgraded LGI Homes (LGIH) to Sell from Neutral with a $98 price target. LGI Homes has a higher demand risk profile than most of its public peers, the analyst told investors, adding that he has become increasingly concerned about the company’s relative reliance on “mom and pop” single-family rental investors for delivery volume as well as the potential impact of higher rates on these customers.

• Loop Capital analyst Garik Shmois downgraded Fortune Brands (FBHS) and American Woodmark (AMWD) to Hold from Buy with price targets of $91 and $59, respectively, as part of a broader research note on Building Products. The analyst stated that his survey of cabinet manufacturers and dealers highlighted a number of specific headwinds, including the recent deceleration in dealer traffic levels, peaking sales growth rates, and an expected extension in the lag of price/cost recovery amid supply chain bottlenecks.

• Credit Suisse analyst Kevin McVeigh initiated coverage of Paycom (PAYC) with an Outperform rating and $425 price target. The analyst believes current valuation does not reflect the growth plus margin prospects of the business and is only due to the significant geopolitical and macro uncertainty. McVeigh also started Ceridian (CDAY) with an Outperform rating and $85 price target.

Thursday, March 24th

• Bank of America analyst Wamsi Mohan downgraded NetApp (NTAP) to Neutral from Buy with a price target of $96, down from $100. The analyst remains confident in the company’s “continued strong execution” after attending its Investor Day, but believes that the investments required for growth will prevent NetApp from realizing operating leverage, which will limit upside in shares from current levels.

• Northland analyst Michael Latimore upgraded iRobot (IRBT) to Outperform from Market Perform with an $85 price target after the Office of the U.S. Trade Representative  (USTR) confirmed on Wednesday that it will reinstate an exclusion for robotic vacuum cleaners from Section 301 tariffs.

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Friday, March 25th

• Argus analyst John Staszak downgraded Carnival (CCL) to Hold from Buy without a price target. The company’s prospects have “deteriorated” given the slow recovery from the omicron surge and rapidly rising fuel costs, Staszak tells investors in a research note.

• BofA analyst Tal Liani downgraded Fortinet (FTNT) to Neutral from Buy with a price target of $355, down from $385. The company is performing well, with Q4 billings up 36% y/y and billings growth guidance for Q1 at 26%, but the stock’s valuation already reflects the strong results, the analyst tells investors in a research note.

• Bernstein analyst Aaron Gal upgraded Teva (TEVA) to Outperform from Market Perform with an $11 price target. Over the past few years, the company has paid down $9B in debt and stabilized its earnings with free cash flow of $2B, Gal tells investors in a research note. The analyst now sees a “confluence of positive news,” including gains from the biosimilar launch of interchangeable Humira and Stelara, launching Risperidone and the Revlimid settlement.