Meta upgraded, PNC Financial downgraded: Wall Street's top analyst calls
Needham upgraded Meta Platforms (META) to Hold from Underperform with no price target. Channel checks are driving upside to the firm's estimates, but the firm remains on the sidelines with a Hold because the firm believes Meta's strategy diffusion "wastes capital and adds risks" and the company's margins and free cash flow are under structural downward pressure.
BNP Paribas Exane upgraded FedEx (FDX) to Outperform from Underperform with a price target of $270, up from $230. While the U.S. domestic parcel market remains competitive and Amazon (AMZN) continues to present a major challenge to incumbents, FedEx is outperforming on both volume and yield growth on a relative basis and the shares are "arguably oversold," the firm tells investors.
BNP Paribas Exane upgraded UPS (UPS) to Neutral from Underperform with a $100 price target. With consensus trending downwards, BNP's outlook is now "better matched by the Street" and volume headwinds appear to be priced in, the firm tells investors.
Wolfe Research upgraded Huntington Bancshares (HBAN) to Outperform from Peer Perform with a $21 price target. The firm, which sees net interest income and net interest margin upside, expects shares will "generate meaningful alpha in the coming year," citing a combination of peer leading loan and deposit growth, ongoing productivity and efficiency improvements, benign credit, and capital returns.
Morgan Stanley upgraded Valley National (VLY) to Overweight from Equal Weight with a price target of $11, up from $10. Valley has taken significant actions over the past year to lower its commercial real estate concentration, increase its reserve ratio, and build capital, but the balance sheet improvement and earnings growth story are not reflected in valuation, the firm tells investors.
Top 5 Downgrades:
Wolfe Research downgraded PNC Financial (PNC) to Peer Perform from Outperform and removed the firm's prior $185 price target. PNC screens as expensive compared to the Outperform-rated banks in the analyst's coverage that generate higher returns, the firm explains.
Citizens JMP downgraded Two Harbors (TWO) to Market Perform from Outperform and removed the firm's prior $13.50 price target on the shares, citing uncertainty about the final level of damages yet to be determined in the ongoing lawsuit against its former external manager.
Maxim downgraded NV5 Global (NVEE) to Hold from Buy with a $23 price target citing the pending takeover by Acuren for $23 per share.
Raymond James downgraded Imperial Oil (IMO) to Market Perform from Outperform with a price target of C$107, up from C$105. With the Investor Day in the rearview mirror, it is challenging to see any near-term catalysts to drive continued outperformance, the firm tells investors in a research note.
Berenberg downgraded Rio Tinto (RIO) to Hold from Buy with a price target of 4,700 GBp, down from 6,200 GBp. The firm is taking a more cautious view on iron ore and reduced estimates by about 5% over 2025-27, citing a lack of clear stimulus from China as "a key driver of this reduction."
Top 5 Initiations:
H.C. Wainwright initiated coverage of Telix Pharmaceuticals (TLX) with a Buy rating and $23 price target. TLX591, which is being studied in a global Phase 3 trial for metastatic castration-resistant prostate cancer, "appears differentiated" and TLX592 "further builds upon that," the firm argues.
KeyBanc initiated coverage of Prairie Operating (PROP) with a Sector Weight rating and no price target. The firm sees "a chicken-or-egg conundrum" for Prairie on whether to enter into M&A now with a low trading multiple to re-rate the equity, or wait for the equity to re-rate before entering into more deals.
BofA initiated coverage of Ralliant (RAL) with an Underperform rating and $48 price target. Ralliant has modestly underperformed peers over this cycle, with revenue declines below peers in Q1, the firm tells investors in a research note.
Bullish on the name, Janney Montgomery Scott initiated coverage of Primoris (PRIM) with a Buy rating and $102 fair value estimate.
Morgan Stanley analyst Sean Laaman assumed coverage of Schrodinger (SDGR) with an Equal Weight rating with a price target of $28, down from $31. Schrodinger has faced volatility due to a combination of macroeconomic factors, underperformance on initial clinical results and uncertainty on valuation and revenue drivers, the firm says.
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For US Companies, Europe Is Hard to Resist: Credit Weekly
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