Calls of the day: 19th June 2024

Here's today's roundup of the most talked-about research calls from Wall Street.

Upgrades

• [.custom-color]Kroger[.custom-color] was upgraded to Outperform by BMO Capital with a revised target price of $60 (currently priced at $52). The stock had dropped 10% last month over fears that prices were reducing across retailers. However, BMO noted, "We believe [Kroger's] positioning in the industry allows it to continue managing the competitive environment with stable [gross margin percentages]." A proposed $24.6 billion acquisition of fellow grocery store Albertsons "is a win-win under either a deal or no-deal scenario," as under a no-deal scenario, cash-per-share could jump to about $12 to $13 from the current $2.30.
• [.custom-color]STMicroelectronics[.custom-color] was upgraded to Neutral from Sell by Goldman Sachs. They moved its price target from $35.50 to $45.80, commenting: "Recent data points and company commentary suggest that demand in consumer end markets has almost troughed, and we expect a recovery in the coming quarters, albeit the exact timing remains uncertain."
• [.custom-color]Juniper Networks[.custom-color] was upgraded by Argus with a price target of $40. The main driver here is renewed optimism that the company will be acquired by Hewlett Packard Enterprise Co.
• [.custom-color]Corning[.custom-color] was given a revised price target of $52, up from $46 by Mizuho. However, they maintained its Neutral rating. So far, this has seemed a muted play despite Corning glass having applications in AI data centres, leading Barron's to comment that this stock could get a boost.
• [.custom-color]Nvidia[.custom-color] shares traded higher after Wells Fargo raised its price target from $125 to $155. Rosenblatt raised its price target from $140 to $200.

Downgrades

• [.custom-color-downgrade]Apple[.custom-color-downgrade] was downgraded to Neutral from Accumulate by analyst Helena Wang at Phillip Securities, with the firm citing the iPhone maker's recent share price movement as its primary reason for the re-rating. The price target was, however, adjusted up to $220 from $194.
• [.custom-color]First Solar[.custom-color] was downgraded to Neutral by Janney Montgomery Scott, with a price target of $260. They noted that this was "more in line with how the buyside is currently thinking" and that Earnings Per Share expansion "could be tougher from current levels."
• [.custom-color]Accenture plc[.custom-color] had its price target lowered to $350 from $398 by Mizuho analyst Dan Dolev, but the Buy rating was maintained.
• Mizuho also cut the price target of [.custom-color]CarMax[.custom-color] to $72 from $75, keeping a Neutral rating. It noted slower year-on-year inventory growth since late April compared with peer Carvana.