Upgrades
Citi upgraded Inter Parfums (IPAR) to Buy from Neutral with an unchanged price target of $99. The firm notes the company recently reported strong Q1 results and offered a robust outlook for the year. Citing the favorable tailwinds in the fragrance category, Inter Parfums' track record of gaining market share and the stock trading at a valuation that represents a discount to its history, the firm upgrades the shares.
JP Morgan double upgraded Alibaba (BABA) to Overweight from Underweight with a price target of $130, up from $75. The firm notes the significant uncertainties facing the China internet sector are being to abate on the back of recent regulatory announcements. The firm expects "early-cycle sectors" such as digital entertainment, local service, and e-commerce to be the first batch of outperformers. Late-cycle verticals such as travel and ads should lag the early-cycle ones by up to two quarters, says the firm, who now has a more balanced view on the stocks.
Berenberg upgraded Hyatt Hotels (H) to Hold from Sell with a price target of $85, up from $80, post the better than expected Q1 results. The firm notes group travel is coming back at pace, which should help to drive an improvement in Hyatt's RevPAR over the yeare. Further, says the company's asset recycling is moving at pace, as it continues to try and deliver on its commitment to recycle $2B through hotel disposals by the end of 2024.
UBS upgraded Citizens Financial (CFG) to Buy from Neutral with a price target of $54, up from $48. The firm states that the U.S. economy can avoid a recession, the stock looks particularly washed out, with market multiples of 1.2-times Q1 tangible book value and 7-times forward earnings. The firm notes Citizens is not a clean loan-growth-plus-rising-rates story, but the stock should get a little more credit on the tough climb from the profitability basement.
Downgrades
Stephens downgraded Dime Community (DCOM) to Equal Weight from Overweight with a price target of $34.50, down from $36 post the Q1 results. The firm notes loan growth outlook for Dime has decreased from 6% to 4%-6%, Paycheck Protection Program fee recognition has largely run its course, and the bank's profitability outlook is no longer ahead of peers. The frim says the downgrade is predicated on the recognition that key aspects to his upgrade a year ago haven't played out or materialized the way the firm anticipated.
Piper Sandler double downgraded Humacyte (HUMA) to Underweight from Overweight with a price target of $4, down from $10, post the Q1 results. The firm notes with the sizable share pullback in several commercial stage companies, there are better alternatives compared to a pre-revenue company like Humacyte in this volatile tape. The firm recognizes the technology Humacyte has developed and sees a future for the company given its multiple ongoing clinical programs in large markets. However, the firm believes the stock will struggle in the near term.
Goldman downgraded Marathon Petroleum (MPC) to Neutral from Buy with a price target of $102, up from $90. The firm cites valuation for the downgrade following the stock's outperformance of 114% versus U.S. c-corporation refining peers over the last two years. The firm continues have a favorable view on Marathon's strategy and return of capital profile.
Others
Jefferies reinstated coverage of DraftKings (DKNG) with a Buy rating and $33 price target. The firm notes a base case scenario says the funding crunch that is priced into the shares is an unlikely outcome. Legalization in California, and prospectively Florida, could occur and still not require a capital raise, says the firm who believes that the current risk/reward for DraftKings shares is highly favorable.
Morgan Stanley initiated coverage of RH (RH) with an Equal Weight rating and $400 price target. The firm views RH as a transcendent brand with the most long-term upside potential in the firm's coverage. However, a 12-month view gives the firm pause with a category reversion and potential recession looming.
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