Market Movers: Today’s Top Research Calls
Upgrades Galore
Investors, take note! Two major upgrades are making waves on Wall Street. Argus has boosted Yum! Brands (YUM) to a “Buy” rating, citing the company’s impressive same-store sales growth at Kentucky Fried Chicken and Taco Bell, which is expected to drive growth in 2025. The firm has set a price target of $155.
Meanwhile, Argus has also upgraded Ralph Lauren (RL) to “Buy” from “Hold”, with a price target of $250. The company’s efforts to attract younger, less price-sensitive customers are expected to increase average unit retail growth, according to the firm.
Downgrade Alert
Stifel has downgraded Canoo (GOEV) to “Hold” from “Buy”, slashing its price target to 50c from $4.50. The firm cites the company’s need for capital and its recent production suspension in Oklahoma as reasons for the downgrade. Since Q1 2022, Canoo has expressed substantial doubt about its ability to continue operating as a going concern.
New Coverage Initiations
Several firms have initiated coverage of various companies, and the verdict is in. DA Davidson has given Vertex (VRTX) a “Buy” rating, with a price target of $62. The firm praises Vertex’s sustained value-capture, per-share compounding, and favorable disruptive catalysts.
Janney Montgomery Scott has initiated coverage of Rithm Property Trust (RPT) with a “Buy” rating and a fair value estimate of $4. The firm believes the company’s transition to a commercial real estate investment strategy will deliver near-term earnings and capitalize on the demand for CRE capital.
Lake Street has initiated coverage of Treace Medical (TMCI) with a “Buy” rating and a price target of $14.50. The firm thinks the market has overreacted to Treace’s challenges and sees the company gearing up for major portfolio additions in the first half of 2025.
Finally, RBC Capital has reinstated coverage of Ducommun (DCO) with an “Outperform” rating and a price target of $72, up from $60. The firm believes Ducommun represents a solid value proposition for small cap investors seeking aerospace and defense exposure.
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