Image Source: PixabayWhat has Wall Street been buzzing about this week? Here are the top 5 buy calls and the top 5 sell calls made by Wall Street’s best analysts during the trading week of July 29 through Aug. 2. First, here are the top 5 buy calls of the week.
1. Alphabet Upgraded to Buy from Accumulate at Phillip Securities
Phillip Securities upgraded Alphabet (GOOGL) to Buy from Accumulate with a price target of $205, up from $195. Alphabet is still the dominant player in digital advertising and the market leader in artificial intelligence, the firm tells investors in a research note. Phillip Securities says the stock is currently trading at attractive valuations post the Q2 report.
2. PayPal Upgraded to Buy at Argus on Turnaround Progress
Argus upgraded PayPal (PYPL) to Buy from Hold with a $75 price target following the company’s report of Q2 results, which the firm says “showed steady progress on its turnaround efforts.”While competition within the online checkout space has placed more pressure on PayPal’s growth rates, the company has returned to growing its active accounts, and several innovation efforts that have been announced are “making progress faster than originally expected,” Argus tells investors in a post-earnings note.
3. Affirm Upgraded to Buy at BofA
BofA upgraded Affirm (AFRM) to Buy from Neutral with an unchanged price target of $36. The firm believes the company’s GAAP profitability may be closer than consensus expects. Affirm’s fiscal Q4 print and guidance could be a positive catalyst, and fiscal 2025 estimates “seem achievable,” BofA tells investors in a research note.The firm says lower interest rates should also be supportive of the company’s revenue less transaction costs, its most important profit metric. BofA is bullish on Affirm’s new and expanded partnerships, especially with Apple (AAPL), and says the company’s credit risk continues to be well-controlled.
4. Wells Upgrades Carvana with Long-Term Opportunity “Too Hard to Ignore”
Wells Fargo upgraded Carvana (CVNA) to Overweight from Equal Weight with a price target of $175, up from $77, following the Q2 report and a transfer of analyst coverage. The company reported a “robust” Q2, but the upgrade call is long-term in nature, reflecting Carvana’s ongoing share gains, a structurally improved cost base, and easing balance sheet concerns, the firm tells investors in a research note.Wells says that despite lingering macro concerns and choppy category dynamics, Carvana’s fundamentals are “clearly improving.” Wells believes the company’s long-term opportunity is “too hard to ignore.”
5. Reddit Upgraded to Buy at Loop Capital
Loop Capital upgraded Reddit (RDDT) to Buy from Hold with an unchanged price target of $75. The shares have retreated almost 20% since July 15 and are now trading at 7.8-times Loop’s 2025 estimated revenue, the firm tells investors in a research note. With the price target now offering 23% upside potential, Loop Capital upgraded the shares. Loop continues to believe that there is likely upside to the Street’s 2024 and 2025 estimates.Next, here are the top 5 sell calls of the week.
1. HSBC Downgrades Arm to Reduce on AI PC Uncertainty
HSBC downgraded Arm (ARM) to Reduce from Hold with a price target of $105, up from $100. The artificial intelligence PC narrative is not as bullish as previously expected, given uncertainty over the total addressable market potential, the firm tells investors in a research note.HSBC sees short-term downside risk to Arm’s earnings from increasing Android smartphone uncertainty. However, Arm shares trade a significant premium relative to its large-cap semiconductor peers, the firm tells investors in a research note. HSBC cut fiscal 2025 and 2026 earnings forecasts to reflect a lack of smartphone restocking momentum and the weaker AI PC narrative. It finds it difficult to justify a further re-rating beyond its new target price.
2. Integra LifeSciences Downgraded to Sell at Citi
Citi downgraded Integra LifeSciences to Sell (IART) from Neutral with a price target of $23, down from $30. The company delivered a better-than-expected quarter, but then talked down estimates with the implementation of a compliance master plan, which includes a ship hold on certain products, the firm tells investors in a research note.Citi says the ship hold is expected to negatively impact revenue in Q3. This is “not the news we wanted as Integra bumps along towards manufacturing resolution,” contends the firm.
3. Frontier Group Downgraded to Underweight at JPMorgan
JPMorgan downgraded Frontier Group (ULCC) to Underweight from Neutral without a price target. The firm is “growing increasingly uncomfortable” with Frontier’s dependence on sale leasebacks, noting the proceeds from which, in some instances, account for the entirety of the airline’s profit.JPMorgan fears that the continued reliance on sale leasebacks is leading to capacity temptations in excess of what demand can potentially handle. While this may ultimately leave Frontier in a competitively advantageous position in the long run, it represents too significant of a risk for current shareholders, the firm tells investors in a research note.
4. Novavax Downgraded to Underweight at JPMorgan
JPMorgan downgraded Novavax (NVAX) to Underweight from Neutral with an unchanged price target of $8. The shares are up 267% since the announced strategic partnership with Sanofi (SNY) for Novavax’s COVID-19 vaccine program, the firm tells investors in a research note.JPMorgan believes current share levels “substantially overvalue” the potential Nuvaxovid economics and revenue to Novavax. The firm sees Covid vaccine demand ultimately being fractional to that of flu.
5. Intel Downgraded to Underperform at BofA with “No Quick or Easy Fix” Seen
BofA downgraded Intel (INTC) to Underperform from Neutral with a price target of $23, down from $35, as the firm materially reduced forecasts following the weak Q2 results and Q3 outlook. Profitability challenges are expected to persist into calendar year 2026, says the analyst, who cut the firm’s calendar year 2024, 2025, and 2026 pro-forma EPS estimates by 75%, 44%, and 29%, respectively.More By This Author:Here’s What Wall St. Experts Are Saying About Snap Ahead Of EarningsWhat Wall St Is Saying About Microsoft Ahead Of Earnings What Wall Street Experts Are Saying About PayPal Ahead Of Earnings
