Wall Street Calls: Upgrades and Downgrades

Deutsche Bank Upgrades Li Auto to Buy

Deutsche Bank has upgraded Li Auto, a Chinese auto company, from Hold to Buy. The bank finds the stock compelling, especially after its 32% decline since late November. Deutsche Bank sees a promising future for Li Auto driven by a robust product pipeline and an attractive valuation for a top tier EV player.

BTIG Downgrades McDonald’s to Neutral

BTIG has downgraded McDonald’s from Buy to Neutral following its recent earnings report. The downgrade is based on expectations of more modest growth in the near future, intensified discounting, and the impact of the Middle East conflict on sales.

Deutsche Bank Initiates Buy for Flywire

Deutsche Bank has initiated a Buy rating for Flywire, a global payments company. The bank sees an attractive entry point for investors due to Flywire’s proprietary payments platform, global payments network, and vertical-specific software solutions, which facilitate high-value payments across various industries and B2B markets.

Wedbush Upgrades Varonis to Outperform

Wedbush has upgraded the security software company Varonis from Neutral to Outperform. The upgrade is based on Varonis’ strong quarterly performance, evidence of growth in its model transition, and anticipated tailwinds from artificial intelligence in the next 12 to 18 months.

Rosenblatt Initiates Buy for Sprinklr

Rosenblatt has initiated coverage of Sprinklr, a customer experience platform software company, with a Buy rating and a price target of $16. The initiation is driven by Sprinklr’s AI-powered Unified-CXM platform, which enables real-time engagement across multiple digital channels.

UBS Upgrades UPS to Buy

UBS has upgraded UPS from Neutral to Buy based on expectations of attractive EPS growth. Despite facing muted revenue growth, UPS management is anticipated to deliver a strong cost reduction program, supporting margin expansion and positive earnings.

Deutsche Bank Reiterates Buy for Disney

Deutsche Bank is sticking with its Buy rating for Disney ahead of the company’s earnings report. The bank’s estimates remain essentially unchanged, with the exception of a 4% decrease in the estimate for the third quarter.

Bernstein Reiterates Underperform for Tesla

Bernstein maintains its Underperform rating for Tesla, citing a lack of near-term positive catalysts for the stock.

Morgan Stanley Reiterates Overweight for Apple

Morgan Stanley remains bullish on Apple, particularly its Vision Pro product, which the bank sees as a valuable addition to the future of spatial computing.

Daiwa Downgrades Tesla to Neutral

Daiwa has downgraded Tesla from Outperform to Neutral, noting concerns about corporate governance aggravating the company’s already challenging financial conditions in 2024.

JPMorgan Resumes Overweight Rating for Broadcom

JPMorgan has resumed coverage of Broadcom with an Overweight rating, setting a price target for December 2024. The move follows a period of restriction and reflects the bank’s positive outlook for the stock.

Piper Sandler Downgrades Chegg to Underweight

Piper Sandler has downgraded Chegg to Underweight, citing limited visibility, subscriber headwinds, and increased competitive pressures related to artificial intelligence.

Morgan Stanley Upgrades Open Lending to Equal Weight

Morgan Stanley has upgraded Open Lending from Underweight to Equal Weight. The bank recognizes improving company fundamentals in the face of headwinds in the beef industry, providing a more balanced outlook.

UBS Downgrades Plug Power to Neutral

UBS has downgraded Plug Power from Buy to Neutral due to limited near-term upside potential. The bank’s price target of $4.75/share suggests a lack of significant short-term growth.

Bank of America Upgrades Tyson Foods to Neutral

Bank of America has upgraded Tyson Foods from Underperform to Neutral. The bank acknowledges the continued challenges in the beef industry but highlights material improvement in Tyson Foods’ chicken fundamentals and overall execution.

Redburn Atlantic Equities Downgrades Bristol-Myers to Neutral

Redburn Atlantic Equities has downgraded Bristol-Myers from Buy to Neutral. The downgrade reflects a reassessment of the medium-term outlook following multiple acquisitions and product updates, which the bank believes hold no immediate positive catalysts.

Citi Upgrades Palantir to Neutral

Citi has upgraded Palantir from Sell to Neutral, considering the company’s stronger-than-expected Q4 and positive momentum in its commercial business. The bank views these factors as breakthroughs that warrant a more favorable rating.

Northcoast Initiates Buy for TKO

Northcoast has initiated coverage of TKO, a combined company of UFC and WWE, with a Buy rating. The bank believes the combination of these assets brings together exceptional leadership teams and creates a sports powerhouse with the potential for significant growth.

JPMorgan Resumes Overweight Rating for BeiGene

JPMorgan has resumed coverage of BeiGene with an Overweight rating, recognizing an attractive entry point for the pharmaceutical company. The bank has set a price target of $185 for December 2024.

JPMorgan Reiterates Overweight for UBS

JPMorgan maintains its Overweight rating for UBS following the company’s earnings report. The bank emphasizes UBS’ targets and its potential to become a wealth management powerhouse, considering its current position as the largest global wealth management provider.