Mid-Morning Look: October 10, 2023

Street Recommendations

Tuesday, October 10, 2023

BMO CAPITAL

  • AIG BMO Capital analyst Michael Zaremski lowered the firm’s price target on AIG to $68 from $69 and keeps a Market Perform rating on the shares. The company "refilled its cookie jar" during the Q4/2019-Q2/2022 "hard market", but the stock’s current valuation embeds expectations that are too lofty from a near-term risk/reward perspective relative to peers, the analyst tells investors in a research note.
  • ALNY BMO Capital lowered the firm’s price target on Alnylam to $234 from $250 but keeps an Outperform rating on the shares. Despite the AdCom’s favorable view on Onpattro’s benefit/risk, the FDA issued a CRL for Onpattro in ATTR-CM citing insufficient evidence of clinical meaningfullness, the analyst tells investors in a research note. While Onpattro’s CRL doesn’t impact Helios-B probability of success, it negatively impacts investor sentiment and raises concerns around the ambiguity of FDA’s perception on "sizable clinical effect" in ATTR-CM, the firm added. BMO states that it remains positive on Helios-B 36-month outcome in expected in the first half of 2024.

BOFA

  • EA BofA upgraded Electronic Arts to Buy from Neutral with a price target of $150, up from $145. With investors cautious on the rebranding of FIFA and EA Sports, the stock’s balance of risk looks attractive again, the analyst tells investors in a research note. The firm says Electronic Arts’ relative valuation is near a five year trough while early stats from the FC24 launch suggest upside to Street estimates and guidance.
  • NTRS BofA analyst Ebrahim Poonawala reinstated coverage of Northern Trust with a Buy rating and $90 price target. The firm sees a "compelling entry point" into what it calls "a hard to replicate wealth management franchise" and considers Northern Trust well positioned to navigate the cycle. The firm acknowledges the downside risks to EPS and ROE from deposit costs and equity and bond market volatility, but argues that these are reflected in the current valuation.
  • BPOP BofA initiated coverage of Popular with a Neutral rating and $63 price target. The analyst believes the bank is well positioned to benefit from the improving and stabilizing Puerto Rico economy. However, this is mostly reflected in the stock’s discounted valuation, the analyst tells investors in a research note.
  • O BofA analyst Joshua Dennerlein downgraded Realty Income to Neutral from Buy with a $52 price target.
  • OHI BofA analyst Joshua Dennerlein upgraded Omega Healthcare to Buy from Neutral with a $36 price target.
  • SBRA BofA upgraded Sabra Health Care to Buy from Neutral.
  • SRC BofA analyst Joshua Dennerlein downgraded Spirit Realty to Underperform from Neutral.
  • NTST BofA downgraded Netstreit to Underperform from Neutral with a price target of $15, down from $20.
  • EFX BofA analyst Heather Balsky lowered the firm’s price target on Equifax to $175 from $195 and keeps an Underperform rating on the shares ahead of the company reporting Q3 EPS on October 18. The stock has underperformed, but the firm still sees downside and worries that the company will miss second half of 2023 guidance, that "bullish investors are too optimistic" about the 2024 mortgage market recovery and that 2025 targets will need to be lowered.
  • SCI BofA lowered the firm’s price target on Service Corp. to $70 from $80 and keeps a Buy rating on the shares. Placer.ai data indicates that the average daily visitations at Service Corp’s locations grew 2% month-over-month in September and that Q3 traffic was down 4% year-over-year and slightly below the 2019 levels, potentially indicating slower sales, the analyst tells investors. The firm, which lowered its estimates "slightly" given that Q3 did not see a typical pick up in September, cites both lower estimate and a lower multiple for its trimmed price target, though it keeps a Buy rating given what it views as an attractive valuation.
  • SQ BofA analyst Jason Kupferberg notes that Block shares have declined 46% since the end of July, despite the fact that FY23 and FY24 sell-side estimates have increased modestly. The firm believes this "unjustified pullback" is due to factors that include a rotation out of growth stocks amid higher rates, crowded investor positioning, questions surrounding Square execution on new verticalized sales structure following a leadership change, worries about Cash App gross profit deceleration in Q3 and a recent platform outage that the firm says was "likely a one-off." Ahead of the company’s Q3 report due on November 2, BofA says ongoing opex discipline could drive another raise in FY23 adjusted EBITDA guidance and the firm maintains a Buy rating and $71 price target on Block shares.

CITI

  • QRVO Citi downgraded Qorvo to Sell from Neutral with a price target of $78, down from $116. The firm sees increased China substitution risk post the recent Huawei Mate 60 phone launch, which it believes uses domestic radio frequency and connectivity chips. While the company’s China sales have already come down over the last year due to weak China smartphone demand, increasing competition from Chinese domestic RF component makers will lead to potential share losses and a weak sales recovery in 2024, the analyst tells investors in a research note.
  • SWKS Citi downgraded Skyworks Solutions to Sell from Neutral with a price target of $87, down from $116. The firm sees increased China substitution risk post the recent Huawei Mate 60 phone launch, which it believes uses domestic radio frequency and connectivity chips. While the company’s China sales have already come down over the last year due to weak China smartphone demand, increasing competition from Chinese domestic RF component makers will lead to potential share losses and a weak sales recovery in 2024, the analyst tells investors in a research note.
  • ARMK Citi raised the firm’s price target on Aramark to $36.50 from $33.93 and keeps a Buy rating on the shares. The analyst updated the model post the Vestis spin. The firm’s Food and Support Services estimates are more optimistic than the market’s.
  • HOG Citi lowered the firm’s price target on Harley-Davidson to $33 from $35 and keeps a Neutral rating on the shares. The analyst says the "long-awaited retail recovery continues to get pushed out," while inventory risk "only adds to the demographic bear case." Harley-Davidson shares have been the biggest underperformer in the powersports group dating back to prior to the pandemic, but Citi’s most recent channel checks point to lackluster demand trends, the analyst tells investors in a research note. The firm says the company’s inventories appear to be building, which is evidence of significant shipments in the quarter, creating a "significant potential headwind" into 2024.
  • AMBP Citi lowered the firm’s price target on Ardagh Metal Beverage to $4 from $5 and keeps a Buy rating on the shares. The analyst cut multiples and target prices for North America packagers with heavy food and beverage exposure on the potential impact from Ozempic and other GLP-1 drugs. The firm says the drugs pose a risk to food and beverage volumes. Given the potential market size with 42% of Americans classified as obese, further adoption of the GLP-1 drugs could be an "existential problem" for food-exposed packagers, the analyst tells investors in a research note.
  • BERY Citi lowered the firm’s price target on Berry Global to $72 from $80 and keeps a Buy rating on the shares. The analyst cut multiples and target prices for North America packagers with heavy food and beverage exposure on the potential impact from Ozempic and other GLP-1 drugs. The firm says the drugs pose a risk to food and beverage volumes. Given the potential market size with 42% of Americans classified as obese, further adoption of the GLP-1 drugs could be an "existential problem" for food-exposed packagers, the analyst tells investors in a research note.
  • CCK Citi analyst Anthony Pettinari lowered the firm’s price target on Crown Holdings to $106 from $114 and keeps a Buy rating on the shares. The analyst cut multiples and target prices for North America packagers with heavy food and beverage exposure on the potential impact from Ozempic and other GLP-1 drugs. The firm says the drugs pose a risk to food and beverage volumes. Given the potential market size with 42% of Americans classified as obese, further adoption of the GLP-1 drugs could be an "existential problem" for food-exposed packagers, the analyst tells investors in a research note.
  • GPK Citi lowered the firm’s price target on Graphic Packaging to $26 from $29 and keeps a Buy rating on the shares. The analyst cut multiples and target prices for North America packagers with heavy food and beverage exposure on the potential impact from Ozempic and other GLP-1 drugs. The firm says the drugs pose a risk to food and beverage volumes. Given the potential market size with 42% of Americans classified as obese, further adoption of the GLP-1 drugs could be an "existential problem" for food-exposed packagers, the analyst tells investors in a research note.
  • OI Citi lowered the firm’s price target on O-I Glass to $19 from $23 and keeps a Buy rating on the shares. The analyst cut multiples and target prices for North America packagers with heavy food and beverage exposure on the potential impact from Ozempic and other GLP-1 drugs. The firm says the drugs pose a risk to food and beverage volumes. Given the potential market size with 42% of Americans classified as obese, further adoption of the GLP-1 drugs could be an "existential problem" for food-exposed packagers, the analyst tells investors in a research note.
  • PTVE Citi analyst Anthony Pettinari lowered the firm’s price target on Pactiv Evergreen to $8 from $9 and keeps a Neutral rating on the shares. The analyst cut multiples and target prices for North America packagers with heavy food and beverage exposure on the potential impact from Ozempic and other GLP-1 drugs. The firm says the drugs pose a risk to food and beverage volumes. Given the potential market size with 42% of Americans classified as obese, further adoption of the GLP-1 drugs could be an "existential problem" for food-exposed packagers, the analyst tells investors in a research note.
  • SEE Citi lowered the firm’s price target on Sealed Air to $37 from $41 and keeps a Buy rating on the shares. The analyst cut multiples and target prices for North America packagers with heavy food and beverage exposure on the potential impact from Ozempic and other GLP-1 drugs. The firm says the drugs pose a risk to food and beverage volumes. Given the potential market size with 42% of Americans classified as obese, further adoption of the GLP-1 drugs could be an "existential problem" for food-exposed packagers, the analyst tells investors in a research note.
  • SLGN Citi lowered the firm’s price target on Silgan Holdings to $48 from $50 and keeps a Buy rating on the shares. The analyst cut multiples and target prices for North America packagers with heavy food and beverage exposure on the potential impact from Ozempic and other GLP-1 drugs. The firm says the drugs pose a risk to food and beverage volumes. Given the potential market size with 42% of Americans classified as obese, further adoption of the GLP-1 drugs could be an "existential problem" for food-exposed packagers, the analyst tells investors in a research note.
  • ALNY Citi lowered the firm’s price target on Alnylam Pharmaceuticals to $233 from $266 and keeps a Buy rating on the shares after Onpattro received a complete response letter for ATTR-CM. Though the CRL is disappointing, the impact to shares "should be fleeting" as attention turns towards follow-on drug Amvuttra, the analyst tells investors in a research note. Citi believes the FDA’s decision has little to no readthrough for Amvuttra’s HELIOS-B readout in the first half of 2024.
  • PLUG Citi lowered the firm’s price target on Plug Power to $12.50 from $13 and keeps a Buy rating on the shares ahead of the Q3 report. While Street revenue estimates appear appropriate, Q3 gross margin expectations will likely need to be revised down due to lower electrolyzer sales, the analyst tells investors in a research note. The firm says the 45V production tax credit, which may come as soon as this month, remains the biggest near-term catalyst for the stock.
  • FTAI Citi analyst Christian Wetherbee raised the firm’s price target on FTAI Aviation to $40 from $28.18 and keeps a Buy rating on the shares. The company is now a pure-play within aviation with two primary segments: Aviation Leasing and Aerospace Products, the analyst tells investors in a research note. The firm continues to be believers in FTAI’s medium-to-long term growth story, citing strength within the engines leasing space, a growing backlog within aviation products and pent up demand for aircraft.

COMPASS POINT

  • SUI Compass Point initiated coverage of Sun Communities with a Neutral rating and $125 price target.
  • ELS Compass Point initiated coverage of Equity Lifestyle Properties with a Neutral rating and $65 price target.

DA DAVIDSON

  • ABCB DA Davidson upgraded Ameris Bancorp to Buy from Neutral with a $44 price target.

DAIWA

  • SPLK Daiwa downgraded Splunk (SPLK) to Neutral from Outperform with a $157 price target after the company agreed to be acquired by Cisco (CSCO) for $157 per share in cash.

EXANE BNP PARIBAS

  • DLTR Exane BNP Paribas initiated coverage of Dollar Tree with an Outperform rating and $139 price target.
  • DG Exane BNP Paribas initiated coverage of Dollar General with a Neutral rating and $116 price target.

JEFFERIES

  • PNFP Jefferies upgraded Pinnacle Financial to Hold from Underperform with an unchanged price target of $71. The analyst says the risk of negative estimate revisions due to Bankers Healthcare Group is no longer valid. Further, the firm expects balance sheet growth to outperform peers as Pinnacle Financial’s "pick-pocket strategy continues to bear fruit while others pull back on growth."

JMP SECURITIES

  • GS JMP Securities analyst Devin Ryan lowered the firm’s price target on Goldman Sachs to $440 from $450 and keeps an Outperform rating on the shares. After some "ups" then "downs" in Q3, sentiment is exiting at a similar place to where it started, the analyst tells investors in a research note. Even though Q3 results will not be great at surface level and new information must continue to be assessed, much of the bad news is understood, the firm argues.
  • SF JMP Securities lowered the firm’s price target on Stifel Financial to $82 from $86 and keeps an Outperform rating on the shares. After some "ups" then "downs" in Q3, sentiment is exiting at a similar place to where it started, the analyst tells investors in a research note. Even though Q3 results will not be great at surface level and new information must continue to be assessed, much of the bad news is understood, the firm argues.
  • LAZ JMP Securities lowered the firm’s price target on Lazard to $50 from $53 and keeps an Outperform rating on the shares. After some "ups" then "downs" in Q3, sentiment is exiting at a similar place to where it started, the analyst tells investors in a research note. Even though Q3 results will not be great at surface level and new information must continue to be assessed, much of the bad news is understood, the firm argues.
  • HOOD JMP Securities analyst Devin Ryan lowered the firm’s price target on Robinhood to $24 from $25 and keeps an Outperform rating on the shares. After some "ups" then "downs" in Q3, sentiment is exiting at a similar place to where it started, the analyst tells investors in a research note. Even though Q3 results will not be great at surface level and new information must continue to be assessed, much of the bad news is understood, the firm argues.
  • ENV JMP Securities lowered the firm’s price target on Envestnet to $78 from $80 and keeps an Outperform rating on the shares. After some "ups" then "downs" in Q3, sentiment is exiting at a similar place to where it started, the analyst tells investors in a research note. Even though Q3 results will not be great at surface level and new information must continue to be assessed, much of the bad news is understood, the firm argues.

JPMORGAN

  • ACAD JPMorgan upgraded Acadia Pharmaceuticals to Overweight from Neutral with a price target of $32, up from $29. The shares have underperformed the broader biotech markets over the recent months and is down 35% from its summer highs due to concerns related to Nuplazid’s composition of matter patents, the analyst tells investors in a research note. Even in a worst-case scenario, Acadia confirmed that the loss of exclusivity would only ever be pulled forward to early-2028 for Nuplazid, says the firm. In that case, its discounted cash flow model would only decrease by $6 per share and still reflect some upside to the current valuation. In time, and perhaps as soon as the coming weeks, the focus of the stock to return to launch execution, particularly around Daybue’s Q3 print, contends JPMorgan.
  • DIS JPMorgan lowered the firm’s price target on Disney to $120 from $125 and keeps an Overweight rating on the shares. The analyst updated Disney estimates ahead of the fiscal Q4 results to reflect recent trends. The firm lowered Q4 consolidated segment operating income 2% to $2.83B with higher Parks, Experiences and Products estimates offset by lower linear operating income and higher direct to consumer drag. JPMorgan says that while it may take 6-12 months before investors have better clarity on Disney’s strategic direction, including Hulu, an ESPN investment, and linear sale, which could be needed before shares begin to work, it remains Overweight shares given the company’s favorable asset mix versus media peers.
  • ET JPMorgan analyst Jeremy Tonet raised the firm’s price target on Energy Transfer LP to $18 from $17 and keeps an Overweight rating on the shares ahead of the Q3 report. The analyst expects "constructive commentary" around base business tailwinds into 2024 for the large-cap master limited partnerships, particularly with an improved commodity environment incentivizing increased upstream activity, which the firm says "complements a robust export picture."
  • CMBM JPMorgan analyst Samik Chatterjee lowered the firm’s price target on Cambium Networks to $6 from $12 and keeps an Underweight rating on the shares. The company highlighted several headwinds in last week’s negative preannouncement, including a delay in government defense orders and moderating orders, the analyst tells investors in a research note.

LADENBURG

  • ZURA Ladenburg initiated coverage of Zura Bio with a Buy rating and $10 price target. Tibulizumab was initially designed and developed by Eli Lilly (LLY), but was in-licensed in 2023 by Zura, which plans to repurpose tibulizumab to treat systemic sclerosis, or SSc, and Hidradenitis Suppurativa, or HS. Both SSc and HS indications for tibulizumab "make much sense to us," says the firm, which sees "considerable evidence" of both IL-17 mechanism of action, or MoA, and BAFF MoA in independent and unrelated trials. Zura plans to start both SSc and HS trials in 2024 and the firm thinks "there is still a meaningful potential upside," even accounting for "an inevitable financing dilution at some point next year," the analyst added.

MIZUHO

  • RRC Mizuho raised the firm’s price target on Range Resources to $40 from $39 and keeps a Buy rating on the shares ahead of the Q3 report. The firm expects a "modest beat" from Range.
  • WBA Mizuho analyst Ann Hynes lowered the firm’s price target on Walgreens Boots Alliance to $25 from $31 and keeps a Neutral rating on the shares ahead of the Q3 report. The analyst reduced estimates on Walgreens and Iqvia to reflect low visibility in the U.S. Healthcare and Technology and Analytics Solutions segments.
  • IQV Mizuho lowered the firm’s price target on Iqvia to $229 from $250 and keeps a Buy rating on the shares. ahead of the Q3 report. The analyst reduced estimates on Walgreens and Iqvia to reflect low visibility in the U.S. Healthcare and Technology and Analytics Solutions segments.
  • CTVA Mizuho analyst Christopher Parkinson lowered the firm’s price target on Corteva to $71 from $72 and keeps a Buy rating on the shares. Recent checks suggest second half of 2023 estimates are likely too high on de-stocking, but investors still underappreciate the price/cost benefits in seed and better corn seed pricing, the analyst tells investors in a research note.
  • FMC Mizuho lowered the firm’s price target on FMC Corporation to $98 from $122 and keeps a Buy rating on the shares. Recent checks suggest second half of 2023 estimates are likely too high on de-stocking, but investors still underappreciate the price/cost benefits in seed and better corn seed pricing, the analyst tells investors in a research note. The firm dropped FMC’s price target on lower estimates.

NEEDHAM

  • RIVN Needham keeps a Buy rating and $31 price target on Rivian while also maintaining the firm’s Conviction List designation following the company’s Q3 delivery numbers and a convertible debt offering that is driving outsize volatility. The stock’s risk/reward is at its most compelling level since the firm introduced coverage in March on the strength of consistent execution in the first half of 2023, a projected strong Q3, and consensus out-year estimates that are not yet reflecting the company’s improved performance, the analyst tells investors in a research note.

PIPER SANDLER

  • EXAS Piper Sandler analyst David Westenberg upgraded Exact Sciences to Overweight from Neutral with an unchanged price target of $90. With strong Cologuard growth and a "clear path" to five years growth rates of above 10%, the 36% pullback in shares since the highs in July "represent a pretty compelling entry point," the analyst tells investors in a research note. The firm thinks Exact will be only "lightly impacted" by macroeconomic factors or from regulatory factors.
  • COTY Piper Sandler analyst Korinne Wolfmeyer lowered the firm’s price target on Coty to $14 from $16 given intensified competition in the mass cosmetics space and recent peer multiple compression. The firm keeps an Overweight rating on the shares.
  • ELF Piper Sandler lowered the firm’s price target on e.l.f. Beauty to $152 from $164 as the firm adjusts its model for the Naturium acquisition now that it has closed and reduces its valuation methodology to account for recent peer multiple contraction and the added risk investors see with smid-cap consumer discretionary. Piper keeps an Overweight rating on the shares.
  • EL Piper Sandler analyst Korinne Wolfmeyer lowered the firm’s price target on Estee Lauder to $155 from $164 given weaker performance for key brands in the firm’s survey. Piper keeps a Neutral rating on the shares.
  • SBH Piper Sandler lowered the firm’s price target on Sally Beauty to $11 from $15 given recent peer multiple contraction and macro risk factors for professional segment. The firm keeps an Overweight rating on the shares.
  • ULTA Piper Sandler analyst Korinne Wolfmeyer lowered the firm’s price target on Ulta Beauty to $540 from $575 given the heightened competition in specialty beauty retail. The firm keeps an Overweight rating on the shares.
  • DAR Piper Sandler lowered the firm’s price target on Darling Ingredients to $89 from $97 and keeps an Overweight rating on the shares. The firm is updating its estimates for Darling Ingredients based on a combination of mark to market on Q3 commodity pricing, as well as adjustments to operating assumptions. Piper is also revising its EPS/EBITDA estimates lower driven primarily by seasonally weaker feed volumes, weaker RD margins and longer than expected downtime at DGD.

RBC CAPITAL

  • RIO RBC Capital lowered the firm’s price target on Rio Tinto to 4,800 GBp from 5,100 GBp and keeps a Sector Perform rating on the shares after attending the company’s Pilbara Iron Ore presentation. The company’s maiden 2024 production and medium cost guidance was provided, which was marginally lower in volumes with SP10 levels sustaining into the medium-term, but costs were also on the upper end of the firm’s previous expectations, the analyst tells investors in a research note.

SCOTIABANK

  • MDB As previously reported, Scotiabank initiated coverage of MongoDB with a Sector Perform rating and $335 price target. MongoDB has emerged as a leader in the NoSQL database market and investors are "pointing to MDB as a clear play on AI," says the analyst, who believes "the AI hype," but adds that the benefits will not materialize overnight. The firm, which sees "minimal AI tailwind" to MongoDB in 2024, also notes that the Street’s subscription revenue growth forecast for FY25 is "among the fastest in software."

STIFEL

  • DXCM Stifel lowered the firm’s price target on DexCom to $145 from $155 and keeps a Buy rating on the shares following an "expansive" CGM survey of 125 U.S. endocrinologists and primary care physicians treating over 90,000 diabetics. Based on the survey results, the firm refined its DexCom (DXCM) projections, making no material changes, the analyst tells investors. The stock is down about 31% since the SELECT trial publication August 8, though the mid-single digit percentage valuation impact that the firm’s survey suggests with new attrition assumptions implies this is "an over-reaction" based on survey-driven GLP-impacted addressable markets and attrition. The firm’s out-year projections include "under-analyzed opportunities," including T2 non-insulin patients, where physician expectations were "unequivocally more-bullish than expected," the analyst added.
  • U Stifel lowered the firm’s price target on Unity to $40 from $50 and keeps a Buy rating on the shares after the company announced that John Riccitiello will retire as President, CEO, Chairman and a member of the company’s board. Following "a rocky few weeks" that started with Unity announcing its runtime fee, then backtracking on certain elements of the pricing changes, "it is clear that Unity has remaining work to regain its status as a trusted partner" for developers and the company "will now do so with a new leader at the helm," the analyst tells investors.
  • VMI Stifel analyst Nathan Jones lowered the firm’s price target on Valmont to $298 from $334 and keeps a Buy rating on the shares. The firm recently completed a survey of 50 Valley irrigation dealers and sentiment for the next 12 months again decelerated compared to three months ago, the analyst tells investors. The firm continues to see the deceleration in the next twelve months outlook as negative with farmers taking a "wait-and-see" approach near-term, the analyst added.

TD COWEN

  • MRTX TD Cowen downgraded Mirati Therapeutics (MTRX) to Market Perform from Outperform without a price target after Bristol Myers Squibb (BMY) said it will acquire Mirati for $58 per share plus a contingent value right of $12 per share.
  • ALNY TD Cowen lowered the firm’s price target on Alnylam to $260 from $265 and keeps an Outperform rating on the shares. The firm said its FDA CRL for Onpattro’s NDA for ATTR-CM was driven by APOLLO-B’s small effect size despite a positive AdComm and prior alignment with FDA on endpoints/SAP. While disappointing Onpattro/ATTR-CM did not meaningfully contribute to our thesis, TD Cowen said to investors.

TRUIST

  • BXSL Truist initiated coverage of Blackstone Secured Lending Fund with a Buy rating and $29 price target. Blackstone Secured is a business development company that invests primarily in the debt of private U.S. companies, the analyst tells investors in a research note. The firm says the company invests in floating rate debt with a sharp concentration at the upper end of the capital structure, meaning that it benefits from higher interest rates and also that it is "heavily cushioned" against credit losses.

UBS

  • NEP UBS analyst William Grippin downgraded NextEra Energy Partners to Neutral from Buy with a price target of $20, down from $74. Following the announcement reducing distribution growth expectations from 12% to 6% year-over-year, the analyst sees limited near-term positive catalysts to drive a re-rating of the shares. NextEra Energy Partners is also facing considerable near-term low-cost debt maturities which could further limit its ability to fund new growth via asset acquisitions, the analyst tells investors in a research note.
  • RIVN UBS analyst Joseph Spak upgraded Rivian Automotive to Buy from Neutral with a price target of $24, down from $26. The firm sees a reduced probability of an additional capital raise over the next ~1 year with capital likely not needed until the end of 2025, and thinks the market can refocus on improving fundamentals with the raise out of the way, the analyst tells investors in a research note. UBS is forecasting 2023 production of roughly 54,500 vs. guidance of 52,000, with the potential for a raise, and forecasts 10x unit growth by 2030.
  • WBD UBS lowered the firm’s price target on Warner Bros. Discovery to $13 from $15 and keeps a Neutral rating on the shares ahead of the Q3 report. Total revenues should grow 4% y/y in Q3, while EBITDA increases 18% y/y to $2.86B, the analyst tells investors in a research note. While there is a potential for an earlier resolution for the ongoing actors’ strike, UBS would expect an initial ramp up period for production and associated revenues.

WEDBUSH

  • MNKD Wedbush last night initiated coverage of MannKind with an Outperform rating and $10 price target. The analyst says the company’s growing portfolio can "drive meaningful value" over the rest of the decade and beyond. MannKind’s orphan lung and endocrine product portfolio offers the potential for "real future value-creation and optionality," the analyst tells investors in a research note. The firm expects strong patient demand and increased manufacturing capacity at MannKind’s facility to support long-term growth.
  • BZH Wedbush upgraded Beazer Homes to Outperform from Neutral with a $32 price target.

WELLS FARGO

  • AMZN Wells Fargo remains bullish on Amazon ahead of quarterly results, with an Overweight rating and a price target of $165 on the shares. The firm expects Q3 revenue/OI generally in-line with expectations, and slightly lowers its Q3/Q4 AWS revenue on tepid cloud checks. Further, Wells sees AWS commentary as largest swing factor to the print.
  • HR Wells Fargo analyst Connor Siversky lowered the firm’s price target on Healthcare Realty Trust to $17 from $19 and keeps an Equal Weight rating on the shares. Strong leasing trends and the potential for higher occupancy implies a positive fundamental backdrop for Healthcare Realty Trust, the firm says. The impact of higher rates on interest expense estimates and cap rates limits near-term performance potential, Wells adds.

Rating abbreviations…
***OP = Outperform
***SP = Sector Perform
***UP = Underperform
***OW = Overweight
***EW = Equal-weight
***UW = Underweight

***Report powered by thefly.com***

_________________________________________________________________

Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.