ALLIANCE GLOBAL PARTNERS

• APVO Alliance Global Partners analyst James Molloy initiated coverage of Aptevo Therapeutics with a Buy rating and $4.75 price target. Aptevo is targeting acute myeloid leukemia, or AML, with lead candidate APVO436, which represents most of the firm’s sum-of-the-parts valuation. In addition to ascribing $4 per share in value to APVO436 for AML, the firm values ALG.APV-527 for multiple cancers and solid tumors at 25c per share, and values preclinical candidates plus cash at 50c per share.

B. RILEY

• MRTX B. Riley downgraded Mirati Therapeutics (MRTX) to Neutral from Buy with a price target of $60, down from $65, after Bristol Myers Squibb (BMY) said it will acquire Mirati for $58 per share plus a contingent value right of $12 per share.

BARCLAYS

• TENB Barclays downgraded Tenable Holdings to Equal Weight from Overweight with a price target of $47, down from $51. The analyst says the vulnerability management category down-ticked in the firm’s latest chief investment office survey. As a result, the analyst repositioned its coverage for more secular growth in security. Barclays thinks consensus estimates for Tenable may still be high on fiscal 2024, and it incorporated Ermetic dilution into its model.
• ZS Barclays upgraded Zscaler to Overweight from Equal Weight with a price target of $190, up from $176. The firm is is making a "positioning call," as it likes the growth opportunity in secure access service edge. The analyst believes SASE could be as big as network security in 2026, and views Zscaler as a leader. Barclays raised fiscal 2024 billings estimates, introduce 2026 estimates, and now anchors its valuation on estimated 2026 free cash flow.
• DISH Barclays lowered the firm’s price target on Dish to $5 from $10 and keeps an Equal Weight rating on the shares ahead of the Q3 report. The analyst says cable valuations benefited from the bottoming of broadband subscribers earlier in the year but that these drivers could change in the coming quarters. Telecom valuations are at multi-year lows in contrast, despite a more rational pricing environment, the analyst tells investors in a research note.
• FOXA Barclays lowered the firm’s price target on Fox Corp. to $33 from $35 and keeps an Equal Weight rating on the shares ahead of the Q3 report. The analyst says cable valuations benefited from the bottoming of broadband subscribers earlier in the year but that these drivers could change in the coming quarters. Telecom valuations are at multi-year lows in contrast, despite a more rational pricing environment, the analyst tells investors in a research note.
• PARA Barclays analyst Kannan Venkateshwar lowered the firm’s price target on Paramount to $11 from $13 and keeps an Underweight rating on the shares ahead of the Q3 report. The analyst says cable valuations benefited from the bottoming of broadband subscribers earlier in the year but that these drivers could change in the coming quarters. Telecom valuations are at multi-year lows in contrast, despite a more rational pricing environment, the analyst tells investors in a research note.
• WBD Barclays lowered the firm’s price target on Warner Bros. Discovery to $13 from $15 and keeps an Equal Weight rating on the shares ahead of the Q3 report. The analyst says cable valuations benefited from the bottoming of broadband subscribers earlier in the year but that these drivers could change in the coming quarters. Telecom valuations are at multi-year lows in contrast, despite a more rational pricing environment, the analyst tells investors in a research note.
• NCLH Barclays analyst Brandt Montour lowered the firm’s price target on Norwegian Cruise Line to $20 from $21 and keeps an Equal Weight rating on the shares ahead of the Q3 report. The analyst expects a Q3 beat, "in-line-ish" Q4 guidance, "solid tone" regarding trending demand into 2024, and a continued recalibration of 2024 costs.
• RCL Barclays lowered the firm’s price target on Royal Caribbean to $127 from $132 and keeps an Overweight rating on the shares ahead of the Q3 report. The analyst expects a Q3 beat, "in-line-ish" Q4 guidance, "solid tone" regarding trending demand into 2024, and a continued recalibration of 2024 costs.
• XEL Barclays lowered the firm’s price target on Xcel Energy to $57 from $60 and keeps an Equal Weight rating on the shares ahead of the fiscal Q3 report. The firm said its view that Xcel could raise its earnings growth target to to 6%-8% on the Q4 call remains unchanged, but says this is increasingly becoming the consensus expectation.

BENCHMARK

• IMAX Benchmark analyst Mike Hickey raised the firm’s price target on Imax to $24 from $23 and keeps a Buy rating on the shares. Global box office for Q3 "significantly exceeded" the firm’s estimate, achieving a "remarkable" 141% of its pre-pandemic performance for the same quarter, the analyst tells investors. This performance underscores "the impressive ongoing recovery of IMAX," added the analyst, who anticipates that China could present further recovery potential in 2024.

BMO CAPITAL

• PRME BMO Capital analyst Kostas Biliouris initiated coverage of Prime Medicine with an Outperform rating and $19 price target. Prime is developing therapies that are based on prime editing, a gene editing technology invented in the lab of gene editing pioneer Dr. David Liu, the analyst tells investors in a research note. The firm says the characteristics of prime editing appear to be "highly differentiated" compared to other gene editing approaches, and can potentially offer superior/broader applicability. BMO believes Prime’s near-term partnerships and key catalysts in the gene editing space can drive upside.

BOFA

• MSI BofA initiated coverage of Motorola Solutions with a Buy rating and $330 price target. The company is the leading supplier of long mobile radio systems, video security and analytics, as well as software solutions for command centers, the analyst tells investors in a research note. The firm says Motorola Solutions’ recurring revenues continues to grow while it is well positioned with "multiple tailwinds supporting growth."
• DDOG As previously reported, BofA analyst Koji Ikeda downgraded Datadog to Neutral from Buy with a price target of $105, down from $123. Based on recent checks with developers, partners and system installers, the demand environment has not meaningfully improved, the analyst tells investors. Additionally, Datadog is widely perceived to be a premium offering, which could drive the end-market to lower cost competitors, native hyperscaler offerings and/or open-source alternatives, added the analyst, who lowered the firm’s estimates to below consensus.
• DPZ BofA lowered the firm’s price target on Domino’s Pizza to $461 from $483 and keeps a Buy rating on the shares ahead of the company reporting Q3 earnings on Thursday, October 12. Foreign exchange rates have moved against multinationals as the dollar has strengthened, notes the firm, which now forecasts international franchise revenues to grow 13% across Q3 and Q4, down from 22% previously.
• KNX BofA analyst Ken Hoexter lowered the firm’s price target on Knight-Swift to $61 from $63 and keeps a Buy rating on the shares. The firm lowered its Q3 trucking-related EPS targets 6% on average within its coverage of truckload, less-than-truckload, truck brokerage, and airfreight carriers given subdued demand and pricing softness. The firm sees downside to earnings expectations as it sees pronounced rate/demand weakness across truckload/truck brokerage carriers, as well negative earnings pressure from the sequential rise in fuel prices, the analyst added in transportation sector preview note.
• SNDR BofA lowered the firm’s price target on Schneider National to $35 from $36 and keeps a Buy rating on the shares. The firm lowered its Q3 trucking-related EPS targets 6% on average within its coverage of truckload, less-than-truckload, truck brokerage, and airfreight carriers given subdued demand and pricing softness. The firm sees downside to earnings expectations as it sees pronounced rate/demand weakness across truckload/truck brokerage carriers, as well negative earnings pressure from the sequential rise in fuel prices, the analyst added in transportation sector preview note.
• WERN BofA lowered the firm’s price target on Werner to $47 from $52 and keeps a Buy rating on the shares. The firm lowered its Q3 trucking-related EPS targets 6% on average within its coverage of truckload, less-than-truckload, truck brokerage, and airfreight carriers given subdued demand and pricing softness. The firm sees downside to earnings expectations as it sees pronounced rate/demand weakness across truckload/truck brokerage carriers, as well negative earnings pressure from the sequential rise in fuel prices, the analyst added in transportation sector preview note.
• CHRW BofA analyst Ken Hoexter lowered the firm’s price target on C.H. Robinson to $87 from $92 and keeps an Underperform rating on the shares. The firm lowered its Q3 trucking-related EPS targets 6% on average within its coverage of truckload, less-than-truckload, truck brokerage, and airfreight carriers given subdued demand and pricing softness. The firm sees downside to earnings expectations as it sees pronounced rate/demand weakness across truckload/truck brokerage carriers, as well negative earnings pressure from the sequential rise in fuel prices, the analyst added in transportation sector preview note.
• ARCB BofA lowered the firm’s price target on ArcBest to $108 from $110 and keeps an Underperform rating on the shares. The firm lowered its Q3 trucking-related EPS targets 6% on average within its coverage of truckload, less-than-truckload, truck brokerage, and airfreight carriers given subdued demand and pricing softness. The firm sees downside to earnings expectations as it sees pronounced rate/demand weakness across truckload/truck brokerage carriers, as well negative earnings pressure from the sequential rise in fuel prices, the analyst added in transportation sector preview note.
• TFII BofA analyst Kex Hoexter lowered the firm’s price target on TFI International to $143 from $144 and keeps a Neutral rating on the shares. The firm lowered its Q3 trucking-related EPS targets 6% on average within its coverage of truckload, less-than-truckload, truck brokerage, and airfreight carriers given subdued demand and pricing softness. The firm sees downside to earnings expectations as it sees pronounced rate/demand weakness across truckload/truck brokerage carriers, as well negative earnings pressure from the sequential rise in fuel prices, the analyst added in transportation sector preview note.

CITI

• PTEN Citi analyst Scott Gruber upgraded Patterson-UTI to Buy from Neutral with a price target of $18, up from $15. The upcoming recovery in U.S. drilling will likely be modest by historical standards, which is currently weighing on Patterson-UTI shares, the analyst tells investors in a research note. However, the firm believes the company’s "quality" operations and deal synergies should still drive share outperformance. Citi says Patterson-UTI offers a "top-tier" drilling business with a pumping business that "appears poised to separate from the pack post-deal." It views the company’s free cash flow prospects as underappreciated.
• JBLU Citi lowered the firm’s price target on JetBlue to $5.75 from $7.50 and keeps a Neutral rating on the shares. The analyst says questions about the resilience of U.S. discount airline demand, higher interest rates, broader uncertainty on the U.S. economic outlook, continued oil price volatility and aerospace supply chain issues "seem to create a challenging scenario" for JetBlue and some peers. In addition, JetBlue is in the midst of trying to acquire a competitor for a large premium, as that competitor also appears to be facing some economic deterioration, the analyst tells investors in a research note.
• BABA Citi analyst Alicia Yap lowered the firm’s price target on Alibaba to $147 from $151 and keeps a Buy rating on the shares. The firm updated its sum-of-the-parts analysis into the fiscal Q2 results. The analyst sees an "undemanding valuation" at current share levels. Citi expects Alibaba to deliver results that are relatively in-line-with consensus estimates.
• FLS Citi reinstated coverage of Flowserve with a Buy rating and $46 price target. The company is working toward diversifying its end market exposure as well as improving its operational execution that should position it to deliver on its 2027 financial targets, the analyst tells investors in a research note. The firm sees continued margin expansion over the next few years for Flowserve.
• MMM Citi lowered the firm’s price target on 3M to $95 from $111 and keeps a Neutral rating on the shares. The analyst says "largely resilient" demand trends across most industrial end markets should drive the Q3 results of industrial conglomerates that meet expectations and remain supportive of growth outlooks for the remainder of the year and into 2024. The firm expects moderating orders and some channel de-stocking as supply chain conditions continue to ease, but thinks these trends are largely well understood and anticipated by investors.
• JCI Citi analyst Andrew Kaplowitz lowered the firm’s price target on Johnson Controls to $58 from $68 and keeps a Neutral rating on the shares. The analyst says "largely resilient" demand trends across most industrial end markets should drive the Q3 results of industrial conglomerates that meet expectations and remain supportive of growth outlooks for the remainder of the year and into 2024. The firm expects moderating orders and some channel de-stocking as supply chain conditions continue to ease, but thinks these trends are largely well understood and anticipated by investors.
• VRT Citi raised the firm’s price target on Vertiv Holdings to $47 from $40 and keeps a Buy rating on the shares. The analyst says "largely resilient" demand trends across most industrial end markets should drive the Q3 results of industrial conglomerates that meet expectations and remain supportive of growth outlooks for the remainder of the year and into 2024. The firm expects moderating orders and some channel de-stocking as supply chain conditions continue to ease, but thinks these trends are largely well understood and anticipated by investors.
• XYL Citi lowered the firm’s price target on Xylem to $101 from $125 and keeps a Neutral rating on the shares. The analyst says "largely resilient" demand trends across most industrial end markets should drive the Q3 results of industrial conglomerates that meet expectations and remain supportive of growth outlooks for the remainder of the year and into 2024. The firm expects moderating orders and some channel de-stocking as supply chain conditions continue to ease, but thinks these trends are largely well understood and anticipated by investors.

EVERCORE ISI

• ORCL Evercore ISI upgraded Oracle to Outperform from In Line with a price target of $135, up from $131. The analyst believes the recent pullback in shares "creates a more interesting entry point" for a business that is now in a better position to deliver more consistent revenue and earnings growth due a higher percentage of revenue coming from cloud solutions. Oracle’s apps and infrastructure cloud businesses are now big enough to drive total revenue growth in the high single digits going forward, the analyst tells investors in a research note. The firm believes Oracle’s current valuation leaves room for upside if the company can show consistent revenue growth and margin expansion.

GOLDMAN SACHS

• LII Goldman Sachs analyst Joe Ritchie double upgraded Lennox to Buy from Sell with a price target of $455, up from $332. The analyst says as residential heating, ventilation, and air conditioning volumes are likely bottoming, the company’s commercial margin improvement is not done and it should continue to beat estimates going forward. Lennox’s commercial margins will improve and confidence in its continued execution supports the firm’s above consensus estimates, the analyst tells investors in a research note.
• ZWS Goldman Sachs downgraded Zurn Elkay Water to Neutral from Buy with a price target of $29, down from $31. The analyst sees less potential for the stock to re-rate given a softer commercial backdrop and Goldman’s below consensus estimates. Zurn Elkay’s earnings momentum will matter more as the company has now closed the multiple gap with peers year-to-date and there is downside risk to consensus estimates, the analyst tells investors in a research note.
• NFLX Goldman Sachs analyst Eric Sheridan lowered the firm’s price target on Netflix to $390 from $400 and keeps a Neutral rating on the shares based on estimate changes ahead of the company’s next earnings report. In terms of the upcoming earnings report, Goldman expects Netflix to report above Street modeled subscriber performance as a mixture of continued password crackdowns, relative strength in terms of breadth and depth of content on the platform and varying price points stimulate demand. However, the firm views it as unlikely that Netflix provides detailed quantitative guidance for 2024, despite "a rising set of investor debates around those inputs," the analyst added.

HSBC

• BABA HSBC lowered the firm’s price target on Alibaba to $135 from $142 and keeps a Buy rating on the shares. The firm cut its September quarter customer management revenue assumption from 6% to 4% year-over-year. It expects it to come in worse than the Street’s expectation of 5.7% growth. Deceleration in gross merchandise volume growth dragged overall segmental performance despite stronger ad demand, the analyst tells investors in a research note.

JEFFERIES

• ARMK Jefferies upgraded Aramark to Buy from Hold with a price target of $29, down from $44. The analyst expects organic growth of 6% in fiscal 2024 and 2025, or two-times the company’s pre-Covid trend rate, driven by a successful multi-year turnaround effort and a "step change" in the industry’s outsourcing penetration rate post-Covid driving new business wins. The firm says Aramark’s margin expectations have been reset and lagging price dynamics in fiscal 2024 should provide a "nice lift." It believes it is time to give Aramark credit for its multi-year turnaround strategy.

LOOP CAPITAL

• MSM Loop Capital upgraded MSC Industrial to Buy from Hold with a price target of $124, up from $96. The firm’s latest industrial distribution checks indicate that September sales were stronger than expected. Supported by this higher starting point and easier organic comps, MSC will likely provide above-consensus sales growth guidance for fiscal 2024, the analyst tells investors in a research note. Meanwhile, Loop anticipates the company will announce a "Mission Critical 2.0" program that will provide additional cost savings. It also sees MSC’s pending Class-B share conversion as a positive catalyst that should support more accretive cash deployment as well as a more favorable valuation multiple.

OPPENHEIMER

• OWL As previously reported, Oppenheimer downgraded Blue Owl Capital to Perform from Outperform, saying the stock looks fairly valued. The firm notes that stocks in the "solutions providers" subgroup have performed very well, and as a result of this, Blue Owl Capital has surpassed the firm’s price target.
• APO Oppenheimer downgraded Apollo Global to Perform from Outperform without a price target. The analyst cites valuation for the downgrade, saying the shares have traded through the firm’s prior price target. The downgrade is purely based on maintaining discipline to valuation as Apollo’s fundamental outlook "is if anything improved," with higher base rates and yet another round of higher capital requirements proposed for banks, the analyst tells investors in a research note.

PIPER SANDLER

• TFIN Piper Sandler assumed coverage of Triumph Financial with a Neutral rating and $60 price target. The analyst says the company’s near-term earnings headwinds are balanced against its long-term opportunity. In the near-term, Triumph’s earnings will likely continue to be pressured by the current freight recession, the analyst tells investors in a research note.
• MKTX Piper Sandler analyst Patrick Moley lowered the firm’s price target on MarketAxess to $250 from $260 and keeps a Neutral rating on the shares ahead of the Q3 report. Equity volumes and volatility slowed again in Q3 but derivatives "remain a bright spot," the analyst tells investors in a research note. The firm says sales cycle headwinds should persist for some in the e-finance space. Piper highlights Cboe Global Markets (CBOE) and BGC Group (BGC) as names it likes heading into earnings.
• SCHW Piper Sandler lowered the firm’s price target on Charles Schwab to $75 from $86 and keeps an Overweight rating on the shares ahead of the Q3 report. Equity volumes and volatility slowed again in Q3 but derivatives "remain a bright spot," the analyst tells investors in a research note. The firm says sales cycle headwinds should persist for some in the e-finance space. Piper highlights Cboe Global Markets (CBOE) and BGC Group (BGC) as names it likes heading into earnings.
• TW Piper Sandler analyst Patrick Moley raised the firm’s price target on Tradeweb Markets to $82 from $73 and keeps a Neutral rating on the shares ahead of the Q3 report. Equity volumes and volatility slowed again in Q3 but derivatives "remain a bright spot," the analyst tells investors in a research note. The firm says sales cycle headwinds should persist for some in the e-finance space. Piper highlights Cboe Global Markets (CBOE) and BGC Group (BGC) as names it likes heading into earnings.
• VIRT Piper Sandler lowered the firm’s price target on Virtu Financial to $24 from $26 and keeps an Overweight rating on the shares ahead of the Q3 report. Equity volumes and volatility slowed again in Q3 but derivatives "remain a bright spot," the analyst tells investors in a research note. The firm says sales cycle headwinds should persist for some in the e-finance space. Piper highlights Cboe Global Markets (CBOE) and BGC Group (BGC) as names it likes heading into earnings.
• PBF Piper Sandler analyst Ryan Todd raised the firm’s price target on PBF Energy to $65 from $63 and keeps an Overweight rating on the shares. The firm is also updating its estimates based on end of quarter mark to market and adjustments to its operating expectations. Despite headwinds to margin capture that have resulted in modest negative revisions across much of the refining space to date, above average West Coast exposure at PBF, as well as strong operations, drove positive revisions to Piper’s refining estimates.
• DINO Piper Sandler lowered the firm’s price target on HF Sinclair to $65 from $73 and keeps an Overweight rating on the shares. The firm is also updating its estimates based on end of quarter mark to market and adjustments to its operating expectations. Despite headwinds to margin capture that have resulted in modest negative revisions across much of the refining space to date, above average West Coast exposure at HF Sinclair, as well as strong operations, drove positive revisions to Piper’s refining estimates.
• HES Piper Sandler raised the firm’s price target on Hess Corp. to $169 from $167 and keeps an Overweight rating on the shares. The firm is updating its Q3 estimates to reflect commodity price mark to market and adjustments to its operating assumptions. Piper is increasing EPS/EBITDA estimates at Hess Corp. to reflect stronger price realizations.
• JACK Piper Sandler lowered the firm’s price target on Jack in the Box to $75 from $93 and keeps a Neutral rating on the shares. Ahead of Jack in the Box’s Fiscal Q4 earnings results next month, Piper has taken a closer look at the model and changed some underlying operating assumptions. The net result is that the firm’s 2024 and 2025 adjusted EPS estimates come down by 40c and 70c, respectively.

RAYMOND JAMES

• AVAV Raymond James downgraded AeroVironment to Outperform from Strong Buy with a price target of $125, down from $130.

RBC CAPITAL

• PEP RBC Capital analyst Nik Modi keeps a Sector Perform rating and $180 price target on PepsiCo ahead of its Q3 results. The company should overdeliver for the quarter driven by momentum in Frito, PepsiCo Beverages North America segment, and strong international pricing, the analyst tells investors in a research note. The firm adds however that given the bias to reinvest, logistics costs, lingering FX headwinds, and the management’s track record of guiding conservatively, RBC does not expect a material upward revision relative to consensus.
• VRSK RBC Capital analyst Ashish Sabadra keeps an Outperform rating and $250 price target on Verisk Analytics ahead of its Q3 results. The analyst sees the environmental tailwinds – including low attrition and consolidation in the industry, a high level of auto shopping activity driving transactional volume in the auto insurance business, and elevated levels of weather activity – as likely sustained in Q3. RBC also contends that Verisk should raise FY23 guidance again given its improved visibility.
• ALB RBC Capital keeps an Outperform rating and $260 price target on Albemarle after hosting investor meetings with its CEO Kent Masters and CFO Scott Tozier. While lithium prices have seen considerable weakness recently, the marginal cost of over $20K/ton for non-integrated and Chinese lepidolite players and current low 1-month inventories should support prices in the coming months, the analyst tells investors in a research note. The firm adds that it remains positive on Albemarle’s leading cost position and long-term growth.

SCOTIABANK

• MRTX Scotiabank upgraded Mirati Therapeutics (MRTX) to Sector Perform from Underperform with a $58 price target after Bristol Myers Squibb (BMY) said it will acquire Mirati for $58 per share plus a contingent value right of $12 per share.

UBS

• POR UBS lowered the firm’s price target on Portland General Electric to $43 from $46 and keeps a Neutral rating on the shares. Portland General Electric on Friday announced a rate settlement that if approved would resolve remaining issues, which would likely give the company the opportunity to deliver on EPS estimates, the analyst tells investors in a research note. A final order and potential approval of the settlement by the Oregon Public Utility Commission is due in 2023, the firm notes.

WEDBUSH

• RIVN Wedbush analyst Daniel Ives lowered the firm’s price target on Rivian Automotive to $25 from $32 and keeps an Outperform rating on the shares. After following strong production and delivery data last week with a dilutive $1.5B convertible debt offering, the firm called the fundraising "another gut punch to investors." While the firm says its "fully" gets there are capital needs down the road for Rivian, it argues that "the Street’s low confidence in this management team around investor messaging and execution is a major problem for the stock and remains a huge overhang." Rivian "continues to stumble with head scratching strategic/investment moves again and again with this latest convert move along those lines," added the analyst.

WELLS FARGO

• ALB Wells Fargo lowered the firm’s price target on Albemarle to $210 from $260 and keeps an Overweight rating on the shares. The firm remains bullish on the name given a strong volume growth outlook through the decade, but reduces its price target and estimates for Q4 2023 and 2024 to reflect lower near-term spot lithium prices impacting variable index contracts.
• META Wells Fargo lowered the firm’s price target on Meta Platforms to $372 from $389 and keeps an Overweight rating on the shares ahead of quarterly results. The firm expects Q3 revenues near HE of guide and modest revenue acceleration into Q4. Wells also sees initial guide of $95B-$100B for FY24 OpEx, but expects below $95B for actual. The firm tells investors to look for CapEx guide at $34B-$39B and forward color on duration/magnitude of CapEx cycle.
• SMR Wells Fargo lowered the firm’s price target on Nuscale Power to $7.50 from $9 given higher interest rates, while keeping an Equal Weight rating on the shares. The firm notes shares surged about 23% on 10/6 after a large order from ENSTRA1. While questions remain, Wells views the announcement incrementally positive.
• RCL Wells Fargo lowered the firm’s price target on Royal Caribbean to $123 from $127 and keeps an Overweight rating on the shares after meeting with management. The firm came away with a better appreciation for Royal Caribbean’s luxury offering and its TUI JV/the German cruise market. Wells also tweaks estimates ahead of Q3 earnings.
• PEP Wells Fargo analyst Chris Carey lowered the firm’s price target on PepsiCo to $170 from $196 and keeps an Equal Weight rating on the shares. The company is "in dire need" of a narrative shift as even beats/raises don’t seem enough these days amid trends normalizing globally, the firm says.
• TSLA Wells Fargo lowered the firm’s price target on Tesla to $260 from $265 and keeps an Equal Weight rating on the shares ahead of quarterly results. The firm notes the company missed consensus Q3 deliveries, and says it expects the weaker volumes and continued price cuts to drive Q3 auto gross margin ex. credits to 16.3% vs. VA consensus of 17.9%.
• LLY Wells Fargo analyst Mohit Bansal raised the firm’s price target on Eli Lilly to $650 from $615 and keeps an Overweight rating on the shares. The firm’s analysis of obesity-related comorbidities and its new model makes it see $50B-plus obesity opportunity, 90% weighted toward co-morbidities. This raises Wells’ conviction into Eli Lilly becoming the first trillion dollar Bio-pharma.
• DK Wells Fargo lowered the firm’s price target on Delek US to $23 from $24 and keeps an Underweight rating on the shares. The firm’s downward revisions to Q3 refining margins and non-refining operations drove downward earnings revisions. Forward cracks imply Q4 refining margins well below the adjusted Q3 expectations, but inventories remain below normal, the analyst tells investors in a research note.
• DINO Wells Fargo lowered the firm’s price target on HF Sinclair to $67 from $68 and keeps an Overweight rating on the shares. The firm’s downward revisions to Q3 refining margins and non-refining operations drove downward earnings revisions. Forward cracks imply Q4 refining margins well below the adjusted Q3 expectations, but inventories remain below normal, the analyst tells investors in a research note.
• AN Wells Fargo lowered the firm’s price target on AutoNation to $150 from $171 as new GPU declines will likely impede EPS growth, while keeping an Equal Weight rating on the shares. The firm notes industry pricing continues to hold in Q3, though it expects modest quarter-over-quarter dealer new GPU declines.
• LAD Wells Fargo lowered the firm’s price target on Lithia & Driveway to $275 from $319 as new GPU declines will likely impede EPS growth, while keeping an Equal Weight rating on the shares. The firm notes industry pricing continues to hold in Q3, though it expects modest quarter-over-quarter dealer new GPU declines.