In a significant update for investors, a compilation of the day’s crucial research calls from Wall Street reveals key upgrades, downgrades, and initiations that could impact market movements.
Among the top upgrades, Argus has elevated its rating for BHP Group (BHP) from Hold to Buy, setting a new price target at $68. The firm underscores the strength of iron ore, copper, and coal prices, which are expected to improve as the global economy begins to recover. Additionally, technical analysis suggests that BHP might be reversing a bearish trend characterized by lower highs and lower lows that persisted since March 2022.
On the downgrade front, RBC Capital has lowered its rating for DigitalBridge (DBRG) from Outperform to Sector Perform, with a price target adjustment from $23 to $16. This follows SoftBank’s announcement regarding its acquisition of DigitalBridge, which includes an all-cash offer at $16 per share, translating to a total enterprise value of $4 billion. Other firms, including B. Riley and TD Cowen, have also adjusted their ratings to Neutral-like positions.
Jefferies has similarly downgraded Mereo BioPharma (MREO) from Buy to Hold, reducing its price target from $7 to 50 cents. The firm’s decision is influenced by the failure of Setrusumab to meet its primary endpoint in both the ORBIT and COSMIC trials, resulting in a sharp decline in shares for both Mereo and its partner, Ultragenyx (RARE). Jefferies expects that while Ultragenyx might rebound by 2026, Mereo’s strategic outlook remains precarious due to its reliance on a potential EUE path and the need for a partnership on alvelestat.
In terms of new coverage, Stephens has initiated its evaluation of several companies. CommVault (CVLT) has been given an Overweight rating with a price target of $162, buoyed by its status as a market leader adapting to new data protection opportunities and transitioning toward Software-as-a-Service. Rubrik (RBRK) also received an Overweight rating and a price target of $105, as the firm anticipates robust growth in data protection and security, along with positive margin expansion.
Further, Stephens has rated Varonis (VRNS) with an Equal Weight and a price target of $40, citing its promising growth trajectory driven by significant market trends in data security. Meanwhile, Freedom Capital initiated coverage of Ero Copper (ERO) with a Buy rating and a price target of $32, noting the company’s advantageous mining-friendly environment in Brazil and its cost-effective, high-grade asset portfolio.
H.C. Wainwright also initiated coverage on Terra Innovatum (NKLR) with a Buy rating and a target of $25, indicating that the company’s use of readily available components and established supply chains could effectively lower the usual regulatory and technological barriers encountered by advanced nuclear reactor developers.
As the market responds to these updates, investors should keep a close eye on these stock movements which could herald new opportunities or risks in the coming days.
