Goldman Sachs Upgrades Chime to Buy with $27 Price Target
The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.Top 5 Upgrades:Goldman Sachs upgradedChimeto Buy from Neutral with a price target of $27, up from $26, which offers 28% upside. The firm believes the market is underappreciating the take rate tailwinds from Chime's new Chime Card.BNP Paribas Exane upgradedToastto Outperform from Neutral with a $40 price target. While competition in point-ot-sale software for restaurants is accelerating, Toast's leadership is intact, the firm tells investors in a research note.B. Riley upgradedKratos Defenseto Buy from Neutral with an unchanged price target of $105. The firm sees a favorable risk/reward at current share levels, saying Kratos has "ample proprietary" intellectual property "enabling an array of affordable solutions."JonesResearch upgradedSpyre Therapeuticsto Buy from Hold with a $64 price target. Ahead of updates in 2026, the firm believes the stock's risk/reward "now skews positive."TD Securities upgradedNew Goldto Buy from Hold with a price target of $12, up from $7.50. The firm cites the proposed all-stock acquisition by Coeur Miningfor the upgrade.Top 5 Downgrades:Bernstein downgradedZscalerto Market Perform from Outperform with an unchanged price target of $264. While Zscaler continues to perform well, the company's fiscal Q1 report "added narrative issues" regarding 2026 annual recurring revenue guidance, driving concerns about increased competition, the firm tells investors in a research note.Baird downgradedTitan Machineryto Neutral from Outperform with a price target of $21, down from $24. The firm says further declines in both the company's U.S. and Europe businesses will pressure its earnings and book value.Barclays downgradedCrown Castleto Equal Weight from Overweight with a price target of $101, down from $104. The firm says collecting rent from EchoStar may prove challenging for the tower companies.Evercore ISI downgradedVICI Propertiesto In Line from Outperform with a price target of $32, down from $36. The firm has growing concerns over the regional gaming lease with Caesarsand how a low coverage ratio gets resolved.RBC Capital downgradedPTC Therapeuticsto Sector Perform from Outperform with a price target of $91, up from $82. With the shares rallying nearly 75% in the past three months, RBC's thesis has mostly played out, the firm tells investors in a research note.Top 5 Initiations:UBS initiated coverage ofCarvanawith a Buy rating and $450 price target. The firm says the company has a "differentiated, best-in-class" online platform and customer experience that positions it to gain share in the large used vehicle market.Benchmark initiated coverage ofCal-Maine Foodswith a Buy rating and $100 price target. While the Cal-Maine name is well-known, the firm believes its valuation is "over-indexed to its legacy as a commodity producer" and discounts sweeping changes throughout the egg category and Cal-Maine's subsequent mix shift to more valuable specialty production.Goldman Sachs initiated coverage ofBeta Technologieswith a Buy rating and $47 price target. The firm views Beta as best positioned among the electric vertical take-off and landing companies. Citi, BTIG, Cantor Fitzgerald, BofA, Morgan Stanley, and Needham also started the name with Buy-equivalent ratings.JPMorgan initiated coverage ofBillionToOnewith an Overweight rating and $150 price target. The firm likes the setup for the stock, saying the company will continue to build out its commercial infrastructure to capture growing demand in both prenatal and oncology. Piper Sandler, BTIG, William Blair, and Stifel also started coverage of the stock with Buy-equivalent ratings, while Jefferies and Wells Fargo initiated the name with Neutral-equivalent ratings.Morgan Stanley initiated coverage ofEvommunewith an Overweight rating and $36 price target. The firm sees a favorable risk/reward for the shares despite the data for EVO756 and EVO301 being early. William Blair, Cantor Fitzgerald, Leerink, and Evercore ISI also started the name with Buy-equivalent ratings.
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Kratos Defense Stock Drops 5% Despite Analyst Upgrade
- Stock Decline: Kratos Defense stock fell 5% by 12:12 p.m. ET on Wednesday, currently priced at $111.83 with a market cap of $20 billion, reflecting market concerns over its future profitability.
- Analyst Upgrade: KeyBanc analyst Michael Leshock raised Kratos' price target by nearly 50% to $130 per share, citing significant growth opportunities in the space and defense sectors expected to persist through 2026.
- Revenue Growth: Despite achieving a 12% annual revenue growth over the past five years, increasing from under $750 million to nearly $1.3 billion, Kratos reported only $20 million in net income, significantly lower than the $79.6 million earned in 2020, indicating profitability issues.
- Cash Flow Concerns: Kratos' free cash flow over the past 12 months is negative $93.3 million, indicating ongoing cash consumption; while analysts forecast earnings of $60 million by 2026, the stock's staggering forward P/E ratio of 333 times raises concerns about overvaluation.
KeyBanc Raises Kratos Price Target by 50%
- Price Target Increase: KeyBanc analyst Michael Leshock raised Kratos' price target by nearly 50% to $130 per share, reflecting optimism about the space and defense sectors, despite a 5% drop in stock price on the same day.
- Revenue Growth: Kratos has achieved a 12% annual revenue growth over the past five years, increasing from less than $750 million to nearly $1.3 billion, indicating potential in the rapidly expanding defense market, although profitability remains weak.
- Cash Flow Situation: Despite revenue growth, Kratos reported negative free cash flow of $93.3 million over the past 12 months, indicating ongoing cash consumption and raising concerns about future financial health.
- Earnings Forecast: Analysts predict Kratos will earn $60 million by 2026, tripling current earnings; however, with a $20 billion market cap, this results in a staggering forward P/E ratio of 333, highlighting significant overvaluation risks.
