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, August 1st

  • Wells Fargo analyst Edward Kelly upgraded Target (TGT) to Overweight from Equal Weight with a price target of $195, up from $155. Target’s selloff provides the opportunity to pick up “a proven share gainer into an underappreciated earnings recovery at the right price,” the analyst argued.
  • Wolfe Research analyst Joshua Tilton initiated coverage of Palo Alto Networks (PANW) with an Outperform rating and $700 price target. Palo Alto is a “consensus long” as investors look to hide out in security names that can deliver both growth and free cash flow margins at an attractive valuation, Tilton told investors in a research note.

Tuesday, August 2nd

  • Susquehanna analyst Shyam Patil upgraded Pinterest (PINS) to Positive from Neutral with a price target of $35, up from $22, on the belief that its new CEO and activist, combined with an “undemanding valuation,” have skewed the risk/reward to the upside.
  • Berenberg analyst Dev Weerasuriya downgraded Teladoc Health (TDOC) to Hold from Buy with a price target of $35, down from $42. The analyst cited the company’s “underwhelming execution” and a lack of clear catalysts over the next 12 months for the downgrade. Cowen analyst Charles Ryhee also downgraded Teladoc to Market Perform from Outperform with a price target of $34, down from $58.
  • BTIG analyst Gray Powell downgraded Snowflake (SNOW) to Neutral from Buy without a price target. The analyst says his most recent field checks on Snowflake “downticked,” which indicates potential for product revenue growth to slow in coming quarters.
  • William Blair analyst Phillip Blee resumed coverage of Wayfair (W) with an Outperform rating and no price target. While the consumer environment remains uncertain, Wayfair maintains a “fundamentally strong model and is well positioned to continue to absorb market share and leverage its existing operations over the long term with minimal additional investment in infrastructure required,” Blee told investors in a research note.

Wednesday, August 3rd

  • Raymond James analyst Aaron Kessler upgraded Uber Technologies (UBER) to Outperform from Market Perform with a $38 price target following the “strong” second quarter results.
  • Bernstein analyst Chad Dillard downgraded Caterpillar (CAT) to Market Perform from Outperform with a $195 price target. Several signs point to order growth markedly slowing in the second half of 2022 then turning negative in 2023 and Caterpillar has become “too reliant in the current environment on pricing to drive growth,” Dillard argued.
  • Goldman Sachs analyst Chris Shibutani initiated coverage of Kymera Therapeutics (KYMR) with a Buy rating and $40 price target. The analyst sees Kymera as “uniquely positioned” as a leading player in the emerging field of targeted protein degradation.

Thursday, August 4th

  • Cowen analyst Oliver Chen downgraded Kohl’s (KSS) to Market Perform from Outperform with a price target of $35, down from $60. The company is “vulnerable” to the pressure the middle income consumer is experiencing, which may drive less visibility into it achieving its medium-term target of 7%-8% EBIT margin, Chen argued.
  • Baird analyst Jonathan Komp downgraded Under Armour (UA) to Neutral from Outperform with a price target of $10, down from $12. Despite first quarter results that were “relatively in-line,” some “pockets of weakness” and a much lower full year 2023 margin outlook are materially weighing on current earnings visibility, Komp said.
  • MKM Partners analyst Catharine Trebnick initiated coverage of Zoom Video (ZM) with a Buy rating and $135 price target. The stock is down 30% year-to-date due to multiple compression across the software market and the company’s management guiding to slower year-over-year growth post-pandemic, but this has created an attractive entry point, the analyst contended.
  • MKM Partners analyst Catharine Trebnick initiated coverage of Five9 (FIVN) with a Buy rating and $135 price target. The analyst believes Five9 is positioned to capitalize on increased spending on customer experience as it is the “leading standalone CCaaS provider with a strong AI product roadmap.”

Friday, August 5th

  •   Stifel analyst Patrick Ho upgraded Advanced Energy (AEIS) to Buy from Hold with a price target of $110, up from $94, following the company’s recent earnings release and its positive outlook for the next few quarters. Advanced Energy has addressed two of his major concerns recently, as on the semis end he is encouraged over the improvements on the operations and on the Artesyn end he believes management has refocused its strategic vision and redeployed resources appropriately, Ho tells investors.
  • Stifel analyst J. Parker Lane downgraded Twilio (TWLO) to Hold from Buy with a price target of $90, down from $200. While total revenue and non-GAAP operating margin beat during the quarter, the company offered an outlook for Q3 that came in below consensus on the top and bottom-lines, Lane tells investors in a research note.
  • Susquehanna analyst Shyam Patil downgraded Twitter (TWTR) to Neutral from Positive with a $45 price target, down from $50. The analyst cites the “associated uncertainty and disruption” related to the pending takeover by Tesla (TSLA) CEO Elon Musk for the downgrade.

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