Apple upgraded, Electronic Arts 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:

• Loop Capital upgraded Apple (AAPL) to Buy from Hold with a price target of $300, up from $170. Loop’s supply chain work suggests that Apple has an opportunity the next few years to solidify itself as consumer’s generative artificial intelligence “base camp” of choice, just as it did for social media 15 years ago with the iPhone and digital content consumption 20 years ago with the iPod.

• Morgan Stanley upgraded Alcon (ALC) to Equal Weight from Underweight with a price target of $85, up from $65. The firm’s prior downgrade of the stock was predicated on a sluggish U.S. premium IOL market, and while that risk remains, “there can be no doubt” that Alcon has found other factors that have more than offset the risk, diminishing the bear case, the firm tells investors.

• BMO Capital upgraded UDR (UDR) to Outperform from Market Perform with a price target of $45, up from $39. BMO’s recent discussion with private owner Carmel Partners reinforced its view that coastal fundamentals have continued to be strong, in particular Washington, D.C., UDR’s largest market.

• RBC Capital upgraded TD Synnex (SNX) to Outperform from Sector Perform with a price target of $140, up from $135. The firm says solid growth in advanced solutions driven by data center builds and cloud deployments, Hyve customer ramp, PC refresh cycle, and demand for AI-powered PCs should improve TD Synnex’s billings growth to mid-single-digits in the second half of 2024 with likely further improvement in fiscal 2025.

• Baird upgraded Carrier Global (CARR) to Outperform from Neutral with a price target of $75, up from $64. The firm sees multiple catalysts that could play out over the next 12-18 months for the company, including asset sales, buybacks and reaccelerating residential trends.

Top 5 Downgrades:

• Citi downgraded Electronic Arts (EA) to Neutral from Buy with a price target of $161, up from $148. Since the fiscal Q2 results, EA’s shares have risen 15% on optimism around the upcoming release of College Football, and while bullish on the release, Citi has some concerns, including potential weakness at Apex Legends, potential crowding out from GTA IV’s release in Q4 of 2025, and macro risk if consumer spending moderates.

• TD Cowen downgraded Travelers (TRV) to Hold from Buy with a price target of $230, down from $252, citing uncertainty about whether modest adverse development for liability coverages in Q1 in recent accident years is a sign of more to come.

• Citi downgraded On Semiconductor (ON) to Neutral from Buy with a price target of $77, down from $85. The firm believes the company’s silicon carbide exposure will hurt its multiple.

• Wells Fargo downgraded SBA Communications (SBAC) to Equal Weight from Overweight with a price target of $220, down from $230. Despite some interest rate cute enthusiasm, the company’s fundamentals will remain “relatively weak” near-term with no funds from operations inflection until 2027 and a lack of a discernible catalyst on the horizon, the firm tells investors in a research note.

• Susquehanna downgraded Caesars Entertainment (CZR) to Negative from Neutral with a price target of $33, down from $44. The firm believes the stock’s underperformance versus MGM Resorts (MGM) is very likely to continue.

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Top 5 Initiations:

• Evercore ISI initiated coverage of Datadog (DDOG) with an Outperform rating and $150 price target. After “treading water” for two years, Datadog has matured to a point and grown into its valuation so that it can become a more consistent compounder over the next 12-24 months, the firm tells investors in a research note.

• Baird initiated coverage of SentinelOne (S) with an Outperform rating and $25 price target. Despite a slight fiscal 2025 guidance down-revision, SentinelOne maintains a strong growth trajectory, the firm tells investors in a research note.

• Baird initiated coverage of Rubrik (RBRK) with an Outperform rating and $42 price target. target. Rubrik stands out as a “top-tier data security vendor, seamlessly integrating backup and security amid surging data and cyber threats,” the firm argues.

• Baird initiated coverage of Tenable Holdings (TENB) with an Outperform rating and $55 price target. The firm sees upside potential amid “modest” growth expectations, favorable market dynamics, and the company’s strategic expansion into federal markets, diversifying its revenue streams.

• Truist initiated coverage of Zeta Global (ZETA) with a Buy rating and $23 price target. Zeta is “a potential disruptive force” in the large and growing marketing tech space, serving enterprises with unique combination of data, AI-powered intelligence, marketing cloud and activation capabilities, the firm tells investors.