Top Calls on Wall Street: Roku, Roblox, Coinbase and More

Top 5 Upgrades:

• Atlantic Equities upgraded Roku(ROKU) to Neutral from Underweight with a price target of $76, up from $40, following Q4 results that were better-than-expected, driven by ad performance.

• Deutsche Bank upgraded Activision Blizzard(ATVI) to Buy from Hold with a price target of $90, up from $83. The firm believes the company's business model offers the best risk/reward outlook across the gaming sector this year.

• Craig-Hallum upgraded Fastly(FSLY) to Buy from Hold with a price target of $17, up from $9, after the company reported a quarterly top- and bottom-line beat and gave full year 2023 guidance that was above the Street forecast at the mid-point. [Read more] DA Davidson also upgraded Fastly to Buy.

• Benchmark upgraded Roblox(RBLX) to Hold from Sell without a price target after the company delivered better-than-expected Q4 financial results, with profit exceeding estimates.

• KeyBanc upgraded Restaurant Brands(QSR) to Overweight from Sector Weight with a $76 price target. With better franchisee alignment and a fresh strategy to improve same-store-sales, the company's growth prospects have improved significantly since the first half of 2022, the firm says.

Top 5 Downgrades:

• Deutsche Bank downgraded Electronic Arts(EA) to Hold from Buy with a $125 price target. The company's fundamental outlook is being negatively impacted by greater macro challenges, a reset mobile strategy, and less new content, the firm notes.

• DA Davidson downgraded Coinbase(COIN) to Neutral from Buy with a price target of $60, up from $55. The stock has nearly doubled year-to-date "yet risks are still increasing," the firm says.

• Bernstein downgraded Boston Beer(SAM) to Underperform from Market Perform with a price target of $255, down from $320. The company's much lower than expected fiscal 2023 guidance reduces the potential for meaningful gross margin expansion, the firm argues.

• DA Davidson downgraded Planet Fitness(PLNT) to Neutral from Buy with a price target of $87, down from $99. While the stock has risen about 50% over the past five months, the company has had no improvement in two key fundamental negatives, the firm says.

• SMBC Nikko downgraded Check Point Software Technologies(CHKP) to Underperform from Neutral with a price target of $120, down from $125. The firm says the deterioration of forward-looking metrics implies further growth deceleration for the company. 

Top 5 Initiations:

• Cowen initiated coverage of Tractor Supply(TSCO) with a Market Perform rating and $245 price target. While "constructive" on what the firm describes as "a best-in-class retailer with attractive moats which dominates a fragmented industry," Cowen prefers to wait from the sidelines for a more attractive entry point.

• JPMorgan initiated coverage of TechTarget(TTGT) with an Underweight rating and $41 price target. The company's business is profitable, but its historic and future revenue growth appear to be below dynamics of the addressable market, implying that the company is not gaining share, the firm says.

• Cowen initiated coverage of Academy Sports(ASO) with an Outperform rating and $72 price target. The firm sees Academy's same-store sales inflecting to positive by Q3 and models above consensus EPS through fiscal 2024.

• Guggenheim initiated coverage of Dutch Bros(BROS) with a Neutral rating and $37 price target. While the firm believes Dutch Bros has "best-in-class" unit economics and "the highest growth algorithm in restaurants," supportive of a premium multiple for shares, it also thinks the 45% year-to-date move in the stock means investors should wait for a better entry point.

• Noble Capital initiated coverage of Haynes(HAYN) with an Outperform rating and $65 price target. Haynes has a track record of innovation as well as unique competitive advantages, the firm tells investors.