Market Movers: Today’s Top Research Calls
Upgrades Galore
Investors, take note! Argus has upgraded Brinker (EAT) to a Buy rating, citing significant improvements in the company’s trends. Restaurant sales and traffic growth are on the rise, thanks to the management’s efforts to streamline its menu, increase prices, and invest in staffing. These changes have led to better efficiencies in the kitchen and overall operations, making Argus confident in its $150 price target.
Meanwhile, TD Cowen has upgraded Despegar.com (DESP) to a Hold rating, following Prosus’ acquisition offer of $19.50 per share in cash. Although Expedia owns 11% of Despegar shares, TD Cowen doesn’t expect a competing bid.
Downgrade Alert
Keefe Bruyette has downgraded Brookline Bancorp (BRKL) to Market Perform, citing the bank’s merger-of-equals announcement with Berkshire Hills Bancorp (BHLB). While the long-term impact on earnings is expected to be favorable, the deal is likely to extend the timeline towards the re-rating aspect of its stand-alone thesis, leaving shares relatively range-bound for the next few quarters.
New Coverage
Raymond James has initiated coverage of ServiceNow (NOW) with an Outperform rating and a $1,200 price target. The firm acknowledges that near-term valuation is challenging but sees the company’s growth potential powering the stock to outperform.
In other news, Raymond James has resumed coverage of Federal Signal (FSS) with an Outperform rating and $110 price target. The company’s portfolio, which supports essential municipal, utility, and infrastructure markets, provides good balance and defensiveness across the cycle.
New Buy Ratings
D. Boral Capital has initiated coverage of Avita Medical (RCEL) with a Buy rating and $25 price target. Avita’s Recell technology has shown promising results in clinical trials for various soft tissue and skin-related indications, and the firm sees significant growth potential from expanding market penetration.
Brookline has initiated coverage of Medicus Pharma (MDCX) with a Buy rating and $12 price target. The company is advancing D-MNA, a doxorubicin tip loaded dissolvable microarray needle array skin patch, in basal cell carcinoma through its subsidiary SkinJect, offering a favorable risk-reward as D-MNA advances through the clinic.
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