This Week, From The Analyst Community

Analyst insight can provide a valuable view of 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. 

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 analysts over the past week.   

Monday, August 8th

  • Guggenheim analyst Joseph Osha upgraded First Solar (FSLR) to Buy from Neutral with a $135 price target. His confidence in the passage of the Inflation Reduction Act of 2022, or IRA, has grown after the act passed the Senate on Sunday and of all the names in his coverage he believes First Solar appears positioned to benefit the most from the provisions of the IRA. JPMorgan analyst Mark Strouse also upgraded First Solar to Overweight from Neutral with a price target of $126, up from $83.
  • Pivotal Research analyst Jeffrey Wlodarczak downgraded Roku (ROKU) to Sell from Hold with an unchanged price target of $60 following the stock’s recent rally. Management ramped expenses dramatically into what will likely be a recession in 2023, which is likely to lead to lower than consensus revenue growth and larger losses through 2023 and possibly 2024, Wlodarczak told investors in a research note.
  • JPMorgan analyst Rajat Gupta downgraded Carvana (CVNA) to Underweight from Neutral with a price target of $35, up from $25. The shares screen expensive relative to e-commerce peers on near- to medium-term profit estimates, Gupta argued.

Tuesday, August 9th

  • Baird analyst Justin Kleber downgraded Bed Bath & Beyond (BBBY) to Underperform from Neutral with an unchanged price target of $4 after the shares surged 148% since July 27, including 86% in the past two trading days.
  • Exane BNP Paribas analyst Laurent Vasilescu downgraded Nike (NKE) to Neutral from Outperform with a price target of $118, down from $151. The analyst highlights increased uncertainty in China, potential market share losses and increased discounting in the U.S., its largest market.

Wednesday, August 10th

  • MoffettNathanson analyst Michael Nathanson downgraded Roku (ROKU) to Underperform from Market Perform with an unchanged price target of $62. The analyst, whose long-term estimates are below consensus, sees Roku’s competitive position as “challenged from all sides with investment spending a necessity to remain competitive.”
  • Argus analyst Jim Kelleher downgraded Twilio (TWLO) to Hold from Buy after the company delivered better-than-expected second quarter revenue but guided “conservatively” on Q3.
  • Barclays analyst Brandon Oglenski reinstated coverage of Frontier Group (ULCC) with an Overweight rating and $19 price target. Following an unsuccessful attempt to create a larger ultra-low-cost carrier in the U.S. through the prior proposed merger with Spirit (SAVE), Frontier Airlines will likely pursue an “aggressive organic growth strategy that should deliver meaningful shareholder upside,” Oglenski noted.

Thursday, August 11th 

  • Guggenheim analyst Michael Morris upgraded Disney (DIS) to Buy from Neutral with a price target of $145, up from $110, following the company’s third quarter results.
  • Atlantic Equities analyst Kunaal Malde upgraded Shopify (SHOP) to Overweight from Neutral with a $46 price target. Shopify continues to be “a market leader in product innovation and a high-quality market share gainer,” said Malde, who sees upside to estimates following the recent reset.
  • Atlantic Equities analyst Simon Clinch downgraded Upstart (UPST) to Underweight from Neutral with a price target of $22, down from $32. The analyst is lowering his 2022, 2023 and 2024 revenue and EPS estimates after Upstart provided “disappointing” third quarter guidance that he said highlights the ongoing severity of headwinds facing the business in the near-term.

Friday, August 12th

  • BofA analyst Julien Dumoulin-Smith upgraded Alliant Energy (LNT) to Buy from Neutral with a price target of $70, up from $62, calling it a “winner” assuming passage of the Inflation Reduction Act, or IRA. If provisions of the act are largely unchanged from the version that passed in the Senate, he expects Alliant will benefit in the form of $1B higher capex on solar projects in coming years, driving EPS growth above the top end of management’s current 5%-7% target range, the analyst tells investors.
  • Morgan Stanley analyst Matthew Harrison double downgraded Centessa (CNTA) to Underweight from Overweight with a price target of $5, down from $10. Harrison tells investors in a research note that he was “clearly wrong” on his assessment of Centessa’s pipeline, with three of the late stage assets being discontinued following the failure of lixivaptan. While management has enough cash and early stage assets to potentially drive long-term value, Harrison is moving to Underweight to reflect the lack of near-term upside for Centessa and the need to wait for other early stage pipeline programs to mature before they can contribute meaningful value.
  • Wolfe Research analyst Sam Margolin initiated coverage of Archer Daniels (ADM) with an Outperform rating and $117 price target. The stock offers “highly competitive dividend growth” through its Nutrition segment alone, the analyst tells investors in a research note.

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