Disney upgraded, JPMorgan downgraded: 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:

• Seaport Research upgraded Disney (DIS) to Buy from Neutral with a $108 price target. The firm sees a better macroeconomic outlook going forward and says investment sentiment on Disney is “seemingly willing to accept the current state” of the Parks demand and emergent direct-to-consumer profits “as a base from which to build.”
• TD Securities upgraded Accenture (ACN) to Buy from Hold with a price target of $400, up from $321. The firm says Accenture’s Managed Services bookings momentum exiting fiscal 2024 supports visibility and reflects its leading scale, with generative artificial intelligence traction.
• Morgan Stanley upgraded U.S. Bancorp (USB) to Overweight from Equal Weight with a price target of $57, up from $54. The firm notes U.S. Bancorp has a relatively high concentration of interest bearing deposits, which should reprice quickly as rates fall.
• Morgan Stanley upgraded Zions Bancorp (ZION) to Equal Weight from Underweight with a $54 price target. Zions’ net interest income and earnings should benefit as rates move lower, the firm tells investors in a research note.
• Raymond James upgraded Frontier Group (ULCC) to Market Perform from Underperform without a price target. The firm sees near-term earnings momentum driven by Frontier’s “favorable” exposure to meaningful capacity cuts at Spirit in addition to improving pricing trends in the domestic and near-international markets.

Top 5 Downgrades:

• Morgan Stanley downgraded JPMorgan (JPM) to Equal Weight from Overweight with a price target of $224, up from $220. The firm is modeling for negative operating leverage next year and is “taking some chips off the table” after the stock’s outperformance.”
• Barclays downgraded Procter & Gamble (PG) to Equal Weight from Overweight with an unchanged price target of $163. Procter should continue to be considered a best-in-class operator among the broader global consumer staples sector, but its “outsized exposure” to slower growth or declining markets, including China is having an impact on its relative sales performance, the firm tells investors in a research note.
• Erste Group downgraded Regeneron (REGN) to Hold from Buy. The company recently suffered a preliminary court defeat in a legal dispute with Amgen (AMGN), which means the latter can sell Eleya, for which Regeneron claims patents.
• Erste Group downgraded AstraZeneca (AZN) to Hold from Buy. The company in recent weeks has “suffered significant setbacks” in two different studies regarding the efficacy of potential drugs against lung and breast cancer, the firm tells investors in a research note.
• Wolfe Research downgraded Charter (CHTR) to Underperform from Peer Perform with a $300 price target. The “march to convergence is accelerating,” evidenced by Verizon’s (VZ) acquisition of Frontier (FYBR), T-Mobile’s (TMUS) sharply raised fiber and FWA targets and AT&T’s (T) discussion of passing 45M locations, the firm tells investors.

Top 5 Initiations:

• BofA initiated coverage of OSI Systems (OSIS) with a Buy rating and $175 price target. The firm views OSI as a beneficiary of the rapidly expanding cargo and transport security sector, arguing that the company has “a stronghold in that market that is only likely to strengthen as the federal government ramps up border security spending.”
• BofA initiated coverage of Navient (NAVI) with a Neutral rating and $17 price target. Fundamentals have been pressured given its large amortizing holdings and while the firm thinks the company is taking necessary steps to turn the corner, it also believes the new strategy comes with execution risk, as reflected in the stock price.
• Goldman Sachs initiated coverage of Celldex (CLDX) with a Neutral rating and $45 price target. The firm says barzolvolimab’s on-target neutropenia, hair discoloration, and other side effects could affect utilization by many patients and clinicians.
• H.C. Wainwright initiated coverage of BioLife Solutions (BLFS) with a Buy rating and $29 price target. The firm says BioLife is a leading supplier of cell processing tools and biostorage services for cell and gene therapy and broader biopharma markets, and notes the divestiture of the freezer business improves the company’s operational efficiency.
• Craig-Hallum initiated coverage of SelectQuote (SLQT) with a Buy rating and $4.50 price target. = With the recent selloff, the firm thinks now is an opportune time to buy the stock and has become increasingly confident in the durability and runway regarding the combination of healthcare services with the core insurance brokerage business.