SpaceX initiated, Salesforce upgraded: Wall Street's top analyst calls

SpaceX initiated, Salesforce upgraded: Wall Street's top analyst calls

The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.

Top 5 Upgrades:

Guggenheim upgraded Salesforce (CRM) to Buy from Neutral with a $228 price target, arguing that the fatal AI bear case on software is a "hallucination." Citi upgraded Lockheed Martin(LMT) to Buy from Neutral with a price target of $582, up from $571. The firm says the company's "cheap" valuation, improving fundamentals, and exposure to "fast growing themes" through its Missiles and Fire Control segment create an attractive risk/reward at current share levels. Guggenheim upgraded Check Point(CHKP) to Buy from Neutral with an $188 price target. Check Point shares are trading significantly below the intrinsic value of its recurring revenue if it was run "hyper efficiently," and Check Point is taking the necessary steps to achieve its aspiration of double-digit top line growth, the firm tells investors in a research note. Jefferies upgraded Murphy USA(MUSA) to Buy from Hold with a price target of $625, up from $550. The firm says improving fuel margins and stronger execution drive a "materially higher" EBITDA outlook for Murphy. Wolfe Research upgraded Fox Corp.(FOXA) to Outperform from Peer Perform with a $71 price target. The firm believes that Fox's merger with Roku (ROKU) shifts the debate about the resilience of Fox News and Fox Sports to a "more dynamic multi-channel growth story," and feels that while the price paid for Roku will dilute Fox's near-term multiple, Fox's "strong fundamentals, faster growth, and robust cash flow look incorrectly priced."

Top 5 Downgrades:

RBC Capital downgraded Dow Inc.(DOW) to Sector Perform from Outperform with a price target of $28, down from $51. The firm cites declining polyethylene prices given a lack of permanent asset closures for the downgrade. Wolfe Research downgraded Simon Property(SPG) to Peer Perform from Outperform without a price target. The firm cites valuation for the downgrade, saying the "all-time high share price is a challenging entry point." Raymond James downgraded Truist Financial(TFC) to Market Perform from Outperform without a price target. The stock's near- to intermediate-term risk/reward has become more balanced, the firm tells investors in a research note. Raymond James downgraded Cullen/Frost(CFR) to Market Perform from Outperform without a price target. The firm cites valuation for the downgrade with the shares up 22% year-to-date. Raymond James double downgraded ConnectOne Bancorp(CNOB) to Market Perform from Strong Buy without a price target. The firm views the stock's near-term risk/reward as more balanced following the stock's 44% rally over the last 12 months. It sees fewer catalysts for further multiple expansion.

Story Continues

Top 5 Initiations:

Wedbush initiated coverage of SpaceX (SPCX) with an Outperform rating and $190 price target. The company is well positioned to become a "major hyperscaler" with its vertically integrated platform across connectivity, launch, and AI infrastructure, the firm tells investors. Wells Fargo initiated coverage of Honeywell Aerospace (HONA) with an Equal Weight rating and $250 price target. The firm expects the company's growth will continue to lag peers with margin upside taking time. Susquehanna initiated coverage of Circle Internet(CRCL)with a Neutral rating and $69 price target. The firm says Circle remains substantially all reserve income, economics are shared and valuation "looks full" although outcomes can "vary widely." Raymond James initiated coverage of Birkenstock (BIRK) with an Outperform rating and $52 price target. Despite being founded in 1774, Birkenstock is a growth story trading at an attractive valuation, the firm tells investors in a research note. JPMorgan initiated coverage of Allegiant Travel(ALGT) with an Overweight rating and $156 price target. The firm sees "meaningful upside" for the shares following the Sun Country Airlines acquisition.

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