Five Below downgraded, DoorDash upgraded: 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:

• BTIG upgraded DoorDash (DASH) to Buy from Neutral with a $155 price target, telling investors that the firm’s checks point to ongoing near-term strength and under-appreciated longer-term drivers that lead it to raise estimates “again.”
• UBS upgraded QuidelOrtho (QDEL) to Neutral from Sell with a price target of $50, up from $42, following an analyst change. The firm sees a path to 500 basis points of margin expansion in the next two years and free cash flow “restoration” driven by sales independent cost initiatives.
• Wells Fargo upgraded Equity Lifestyle (ELS) to Overweight from Equal Weight with a price target of $82, up from $70.50. The firm believes Equity Lifestyle offers above average and highly visible top and bottom-line growth at a reasonable valuation vs Resi peers.
• H.C. Wainwright upgraded Prelude Therapeutics (PRLD) to Buy from Neutral with an unchanged price target of $5. The recent stock decline provides an attractive entry point, the firm tells investors in a research note.
• Raymond James upgraded Safehold (SAFE) to Outperform from Market Perform with a $34 price target. The firm says lower interest rates are likely to drive increasing investment opportunities for Safehold.

Top 5 Downgrades:

• JPMorgan downgraded Five Below (FIVE) to Underweight from Neutral with a price target of $95, up from $89. The firm’s recent fieldwork is pointing to Q3-to-date same-stores-sales through mid-September being down low-single-digits, with August comps down low-single-digits, but the first half of September showing “sequential improvement,” the firm tells investors in a research note.
• JPMorgan downgraded Casey’s General Stores (CASY) to Underweight from Neutral with a price target of $337, up from $300. The firm thinks Casey’s Prepared Foods margins will be negatively impacted by rising cheese costs, which will likely not be passed on to the customer fully.
• JPMorgan downgraded Murphy USA (MUSA) to Underweight from Neutral with a price target of $435, up from $415. At share current levels, the firm thinks the market is baking in a higher fuel margin than its view of long-term mid-cycle and even above Murphy’s own target.
• Morgan Stanley downgraded Elanco (ELAN) to Equal Weight from Overweight with a price target of $15, down from $17. The firm says that while Elanco’s pipeline progress offers line of sight to more consistent sales growth and share gains, it lacks conviction in the near-to-medium term pathway given the lack of clear “superior differentiation in an evolving competitive landscape” for its key products.
• JPMorgan downgraded Halozyme Therapeutics (HALO) to Neutral from Overweight with a price target of $57, up from $52. The firm cites valuation for the downgrade with the shares up 69% year-to-date.

Top 5 Initiations:

• Piper Sandler initiated coverage of Abbott Laboratories (ABT) with an Overweight rating and $131 price target. Piper sees an attractive entry point into what it believes is one of the higher quality large-cap medtech names.
• RBC Capital initiated coverage of Charter Communications (CHTR) with a Sector Perform rating and $345 price target. The company remains under “numerous pressures” stemming from intensified competition with fiber and fixed wireless access, the Affordability Connectivity Program related unwind, and elevated capital investments required to evolve and expand the network, the firm tells investors in a research note.
• Barclays initiated coverage of Avis Budget (CAR) with an Equal Weight rating and $105 price target. The firm believes some of the potential near-term “lumpiness” in the rental industry via increased fleet availability, temporarily elevated depreciation expense, and potential impact from Hertz’s fleet rebalance may limit Avis Budget’s upside. Barclays also started coverage of Hertz (HTZ) with an Underweight rating and $3 price target.
• Wells Fargo initiated coverage of Lamar Advertising (LAMR) with an Equal Weight rating and $132 price target. The firm says Lamar is a leader in an emerging advertising category, digital out-of-home ads, but the shares are fairly valued at current levels. Wells Fargo also started coverage of Outfront Media (OUT) with an Overweight rating and $22 price target.
• BofA initiated coverage of Coursera (COUR) with a Buy rating and $11 price target. Coursera’s increased focus on proprietary content could widen its defenses via platform-exclusive courses with better revenue share economics, says the firm, which is constructive on the company’s long-term growth.