Street Calls of the Week: Upgrades for Dupont, Datadog, and NetApp
Last week saw notable upgrades on Wall Street, with analysts showing increased confidence in the prospects of Dupont, Datadog, and NetApp. These companies have displayed significant potential through recent developments, promising a brighter future for their shareholders.
Dupont Sees Upgrade from Citi
On Tuesday, Citi upgraded Dupont to Buy, setting a price target of $95. The upgrade triggered a positive reaction from the market, with Dupont’s stock rising approximately 3% following the announcement. Citi’s optimism stems from the potential value generation as Dupont operates as standalone businesses, focusing on targeted growth and clearer portfolio strategies. Moreover, Citi anticipates a recovery in the electronics sector and a relaxation in the destocking observed in more challenged markets as key drivers for Dupont’s growth.
Mind Medicine Receives Outperform Rating from Baird
Baird initiated coverage on Mind Medicine Inc with an Outperform rating and a $27 price target, highlighting the company’s lead drug, MM120. This novel form of LSD targets generalized anxiety disorder (GAD) and has shown promising results in clinical trials. The FDA’s Breakthrough Therapy Designation for MM120 underscores its potential over current treatments, with Baird suggesting the drug could achieve blockbuster status in the GAD market.
Datadog Upgraded by BofA
BofA upgraded Datadog to Buy with a $155 price target. This upgrade reflects BofA’s view of Datadog’s strong position in the $53 billion market opportunity for application and infrastructure performance monitoring. Datadog’s comprehensive platform, featuring 22 products, positions it favorably for consolidators and innovators alike. BofA expects Datadog to continue delivering strong revenue growth and free cash flow margins well above its peers.
NetApp’s New Outlook from JPMorgan
JPMorgan upgraded NetApp to Neutral, setting a price target of $125. The upgrade was based on NetApp’s ability to maintain gross margins amid rising NAND prices, challenging JPMorgan’s initial expectations. While acknowledging NetApp’s solid market presence, particularly in Cloud services and All-Flash Arrays, JPMorgan remains cautious about the company’s macroeconomic performance relative to its peers who are benefiting more directly from advancements in Artificial Intelligence (AI).
Each of these upgrades reflects a nuanced understanding of the companies’ prospects, market positions, and the broader economic and technological context in which they operate. Investors and market watchers will be keen to see how these predictions unfold in the coming months.
