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.  Stirrings 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 hundreds 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.   

Monday, June 13th 

  • RBC Capital analyst Joseph Spak upgraded Tesla (TSLA) to Outperform from Sector Perform with a price target of $1,100, down from $1,175. The analyst is positive on the company’s more favorable near-term set-up and also believes that Tesla’s focus on supply chain and vertical integration will be a mid-term competitive advantage.
  • Canaccord analyst Carey MacRury upgraded Royal Gold (RGLD) to Buy from Hold with a price target of $140, down from $151, as he updated his views on mining royalty companies following the first quarter reporting season.
  • Morgan Stanley analyst Stan Zlotsky downgraded Zendesk (ZEN) to Equal Weight from Overweight with a price target of $80, down from $145, after the company completed its strategic review and decided to remain independent.
  • Wolfe Research analyst Alex Zukin downgraded DocuSign (DOCU) to Underperform from Peer Perform with a $50 price target. The company reported “mixed” fiscal first quarter results and updated its fiscal 2023 billings guidance to now grow half as previously expected and suggests potential for single-digit revenue growth next year, Zukin told investors in a research note
  • Wells Fargo analyst Jared Shaw initiated coverage of Silvergate Capital (SI) with an Overweight rating and $120 price target. Shaw believes much of the bear-case is priced in at current levels, which makes for an attractive entry point.

Tuesday, June 14th

  • Bank of America analyst Elizabeth Suzuki upgraded Tractor Supply (TSCO) to Buy from Neutral with a price target of $260, up from $250. Tractor Supply continues to beat expectations and she expects consumables, like pet and animal feed and home/vehicle maintenance essentials, to earn a higher share of wallet as U.S. consumers shift their spending toward non-discretionary categories over discretionary products.
  • Benchmark analyst Matthew Harrigan downgraded Netflix (NFLX) to Sell from Hold with a $157 price target, stating that he “prematurely” upgraded the stock to Hold following the company’s fourth quarter earnings report. While he is “not disconcerted” by Monday’s announcement that Ken Barker will assume the role of Principal Accounting Officer from CFO Spencer Neuman, Harrigan argued that the market is now “very jaded” on streaming valuations and thinks Netflix could be pressured if member growth and operating profit margin stall out.
  • JPMorgan analyst Kenneth Worthington downgraded Coinbase (COIN) to Neutral from Overweight with a price target of $68, down from $171. The analyst continues to be a believer in the cryptocurrency markets and blockchain technology, but says the “extreme decline” in the price of cryptocurrency markets in the second quarter combined with Coinbase’s ramp in investment “would appear to not only make it challenging for it to generate a profit in the near future but also to meet its annual loss cap” of $500M of annual EBITDA.

Wednesday, June 15th

  • Wells Fargo analyst Steven Cahall upgraded Spotify (SPOT) to Equal Weight from Underweight with a price target of $124, up from $101. The analyst noted that Spotify’s recent investor day laid out a more profitable company than he has modeled historically.
  • Jefferies analyst Ashley Helgans upgraded Tapestry (TPR) to Buy from Hold with a price target of $45, up from $30, as she took over lead coverage of the stock. Helgans argued that Tapestry “significantly” improved its financial profile driven by the foundational changes made to the business over the last few years, namely in digital, marketing, and data.
  • Canaccord analyst David Hynes upgraded Snowflake (SNOW) to Buy from Hold with an unchanged price target of $185, arguing that shares are “too cheap” if one take management’s 2028 targets for $10B in product revenue and 25% free cash flow margins shared at Snowflake’s analyst day at face value.
  • Atlantic Equities analyst John Heagerty downgraded Robinhood (HOOD) to Underweight from Neutral with a $5 price target, down from $15, which implies 30% downside. The analyst is increasingly concerned about the “deteriorating revenue trends” facing Robinhood.

Thursday, June 16th

  • Citi analyst Charles Armitage upgraded Boeing (BA) to Buy from Neutral with a price target of $209, down from $219. If the 737 MAX, 777X, and the 787 programs achieve Citi’s forecast levels of production and profitability, the stock’s fair value is $209, implying 70% upside, Armitage told investors in a research note.
  • JPMorgan analyst Philip Cusick reinstated coverage of Warner Bros. Discovery (WBD) with a Neutral rating and $22 price target. The analyst believes the company will overachieve on its synergy guidance, but his 2023 estimates are below guidance given the recent reduction at legacy Warner Media, “newly forming economic headwinds” that could impact advertising, and less comfort around the path of the pivot to direct-to-consumer.

Friday, June 17th

  • RBC Capital analyst Shelby Tucker upgraded NextEra Energy Partners (NEP) to Outperform from Sector Perform with a price target of $89, up from $86, following the company’s announcement to cap incentive distribution rights fees at $157M. The IDR announcement will help NextEra gain financial flexibility through lower equity needs and give the company more “ammunition to execute on dropdowns or acquisitions,” Tucker tells investors in a research note.
  • Truist analyst Matthew Thornton downgraded Roblox (RBLX) to Hold from Buy with a price target of $29, down from $36. The digital entertainment group have outperformed the S&P 500 by 21-30 points since reporting earnings in mid-May and Roblox now screens least favorably among the group on its revision trend, valuation, and exposure to tailwinds and headwinds, Thornton tells investors.
  • Loop Capital analyst Joseph France initiated coverage of CVS Health (CVS) with a Buy rating and $120 price target. The company is well-positioned in its core markets, and with less debt and stronger earnings growth, CVS can afford more strategic acquisitions, the analyst tells investors in a research note.