MercadoLibre upgraded, PagerDuty 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:
-
New Street upgraded MercadoLibre (MELI) to Buy from Neutral with a price target of $1,650, up from $1,400. The analyst says the company remains a "uniquely well positioned asset" across e-commerce. MercadoLibre's market share gains in Brazil, its core market, have been material in the last 12 months and there is more to come with domestic players struggling to compete, the analyst tells investors in a research note. The firm says talk of Chinese vendor competition is likely overdone.
-
DA Davidson upgraded AppFolio (APPF) to Buy from Neutral with a price target of $230, up from $155. The firm transitioned coverage to a new analyst with the upgrade. AppFolio holds a competitive advantage in the user-friendliness of its software and has multiple growth drivers from both expansion among existing clients and market penetration, the analyst tells investors in a research note.
-
Citi upgraded Aramark (ARMK) to Buy from Neutral with a price target of $47, up from $45. With the stock down 6% in the last month, Aramark's valuation is attractive and the upcoming Uniforms spinoff event is a potentially positive catalyst, the analyst tells investors in a research note. Although execution risk remains in the context of the Uniforms separation and the "impressive rate" of new contract growth acting as a near-term margin drag, offsetting this is that the inflationary environment seems on the cusp of inflecting into favorable territory for Aramark, contends Citi.
-
Guggenheim upgraded Eos Energy (EOSE) to Buy from Neutral with a $10 price target following yesterday's news that the Department of Energy has provided a $400M conditional loan commitment to the company. The "long-awaited" announcement marks the end of a lengthy technical and due diligence process and the loan guarantee should underpin an expansion to 8GWh in annual production capacity by mid-2026, the analyst tells investors. The firm's price target reflects its updated revenue and EBITDA outlook for 2025, arguing that the conditional commitment is significant as it signals that Eos has passed the LPO's due diligence process.
-
Wedbush upgraded Papa John's (PZZA) to Outperform from Neutral with a price target of $95, up from $80. The firm's checks point to North America same-store sales growth trending above consensus in Q3 and beyond the quarter the firm views Papa's forward domestic same-store sales growth expectations as "realistic," the analyst tells investors. The margin trajectory could deliver operating margins ahead of current expectations and the firm is "not overly concerned" about Papa's medium- to longer-term unit growth trajectory, the analyst added.