Thursday’s biggest calls on Wall Street saw a wide range of upgrades, downgrades, and initiations from various firms. These calls covered companies across different sectors, including healthcare, technology, finance, and more. Each call provided unique insights into the potential growth or challenges faced by the companies in question. Let’s analyze the key points from these calls and understand the implications for investors.
UnitedHealth: Baird Initiates Company as Outperform
Baird initiated UnitedHealth as outperform, highlighting the health insurance company as a favorite idea at the firm. The optimism stems from UnitedHealth Group’s position as the most vertically and horizontally integrated Managed Care company. The firm set a price target of $597, indicating a potential 20% upside. This call suggests that UnitedHealth is well-positioned for future growth in the managed care sector.
Okta: Evercore ISI Upgrades to Outperform
Evercore ISI upgraded Okta to outperform from in line following strong F1Q results that surpassed expectations. The upgrade was accompanied by a more positive outlook, indicating that prior execution issues are now behind the company. This upgrade underscores Okta’s improved performance and signals a bullish sentiment toward the identity access management company.
Goldman Sachs initiated Abbott Labs as a buy, citing the company’s diversified business and strong product cycles as drivers for top-line growth. The firm believes that margin expansion and balance sheet strength will contribute to EPS upside. This initiation indicates a bullish outlook on Abbott Labs and its growth prospects in the healthcare industry.
UBS reiterated Apple as neutral, citing ongoing iPhone pressure in key markets like China and the U.S. The analysis suggests that smartphone demand trends may not align with sell-in data, leading to continued pressure on Apple’s iPhone sales. This neutral rating reflects a cautious stance on Apple’s short-term performance amid market challenges.
Cava: Piper Sandler Downgrades Company to Neutral
Piper Sandler downgraded Cava to neutral from overweight following the company’s 1Q24 earnings results. The firm cited a more balanced risk-reward profile and set a price target of $92, implying limited upside from current levels. This downgrade reflects a more cautious view on Cava’s near-term prospects and investor sentiment.
Eli Lilly: Goldman Sachs Reiterates Company as Neutral
Goldman Sachs reiterated Eli Lilly as neutral while raising the price target on the stock. The firm updated its market model for obesity therapeutics and forecasted strong sales growth for next-generation medications. This reiteration suggests a neutral stance on Eli Lilly’s overall performance, despite positive market outlook for the company.
Mizuho upgraded PayPal to buy from neutral, emphasizing the company’s attractive valuation compared to peers. The upgrade reflects a bullish view on PayPal’s growth potential and market positioning in the payment industry. This call suggests that PayPal’s current valuation presents an opportunity for investors to capitalize on future growth.
Thursday’s biggest calls on Wall Street provided a diverse range of insights into various companies across sectors. These calls ranged from initiations to upgrades and downgrades, reflecting the dynamic nature of the market. Investors should carefully consider the implications of these calls and conduct their own research before making investment decisions. The analysis of these calls can serve as a valuable tool for understanding market trends and potential opportunities in the stock market.