Institutional investors and professional traders rely on The Fly to learn which companies the best analysts on Wall Street are saying to buy and sell.

Research analysts at Wall Street's largest banks issue recommendations on whether a stock should be bought, held, or sold. The Fly's team of financial market experts scours hundreds of research notes daily to uncover the best trading ideas. Check out today's top analyst calls from around Wall Street, compiled by The Fly.

Top 5 Upgrades:

• Stifel analyst Scott Devitt upgraded Netflix (NFLX) to Buy from Hold with a price target of $250, up from $240, following the company’s quarterly results. With signs of stabilization in the subscriber base emerging, the prospect of a prolonged period of subscriber losses is becoming “increasingly unlikely," Devitt told investors in a research note.
• Bernstein analyst Robin Zhu upgraded Alibaba (BABA) to Outperform from Market Perform with a price target of $130, up from $115, with a floor valuation of $85-$90. The analyst upgraded the shares as he believes the company's incremental gross merchandise value share will "improve in the coming quarters" as last year's merchant exodus is lapped and with softer macro comps, and expects "lower strategic initiatives spend to drive acceleration in China Commerce EBITDA growth."
• Bank of America analyst Tal Liani upgraded Check Point (CHKP) to Buy from Underperform with a price target of $140, up from $130, noting that Check Point has seen revenue growth accelerate from low-single digit to mid-single digit year-over-year in the past few quarters.
• HSBC analyst Gordon Gray upgraded Chevron (CVX) to Buy from Hold with a price target of $167, down from $183. The stock has been one of the worst performers in the group in the past month, which has bought valuation back to levels which he thinks justify an upgrade given that revised price target now implies upside of 21%.
• KeyBanc analyst Aleksey Yefremov upgraded FMC Corporation (FMC) to Overweight from Sector Weight with a $122 price target. The analyst expects U.S. chemicals companies to report "strong" Q2 results, but he cautions that the second half of 2022 may prove "tougher." He also upgraded Albemarle (ALB) to Sector Weight from Underweight with a $122 price target.

Top 5 Downgrades:   

• Wolfe Research analyst Darrin Peller downgraded PayPal (PYPL) to Peer Perform from Outperform with no price target. The analyst argued that the company has among the highest recession sensitivities as well as valuation.
• Wolfe Research analyst Darrin Peller downgraded Western Union (WU) to Underperform from Peer Perform with a price target of $17, down from $20. The analyst views Western Union's stock as fairly valued at this time near $17, leading to a relative underperform rating and little upside potential in 2022.
• Bank of America analyst Tal Liani double downgraded Arista Networks (ANET) and Juniper (JNPR) to Underperform from Buy with price targets of $105 and $32, down from $140 and $40, respectively. Investor expectations for networking stocks are still not aligned with "the forthcoming deterioration in the financials," argued Liani, who flags risks of deteriorating order trends and concerns about slow spending and project pushouts, even in areas deemed safe.
• Stifel analyst Jim Duffy downgraded Allbirds (BIRD) to Hold from Buy with a price target of $5, PLBY Group (PLBY) to Hold from Buy with a price target of $7, and Wolverine World Wide (WWW) to Hold from Buy with a price target of $23 as he cut estimates for nearly all Americas Sports and Lifestyle Brands companies in his coverage due to high inventories, lower traffic, and early promotions.
• Bernstein analyst Chad Dillard downgraded Cummins (CMI) to Market Perform from Outperform with a price target of $190, down from $238, implying 7% downside potential to the current share price. Demand is poised to "slow materially" in 2023 and at the current price, shares are not reflecting the near 40% downside risk to consensus earnings that will play out over the next two years, Dillard told investors in a research note.

Top 5 Initiations:

• Susquehanna analyst Joseph Stauff initiated coverage of Caesars Entertainment (CZR) with a Negative rating and $32 price target. The analyst thinks 2023 consensus estimates are too high and that softening demand will hit Las Vegas the hardest. Stauff also started Rush Street Interactive (RSI) with a Neutral rating.
• UBS analyst Elizabeth Garcia initiated coverage of Danaher (DHR) with a Buy rating and $297 price target. The company is expected to gain market share in gas chromatography products, the analyst told investors in a research note. Garcia also started coverage of Agilent (A) with a Buy rating and $139 price target.
• Canaccord analyst John Newman initiated coverage of Arcellx (ACLX) with a Buy rating and $32 price target, citing his belief that Arcellx's CART-ddBCMA could be the "best-in-class" BCMA-targeted CART in multiple myeloma, ahead of Legend (LEGN) and Johnson & Johnson's (JNJ) Carvykti, and 2seventy Bio (TSVT) and Bristol-Myers' (BMY) Abecma.
• Chardan analyst Keay Nakae initiated coverage of Avidity Biosciences (RNA) with a Buy rating and $29 price target. Avidity is an "intriguing small-cap story that, while not immune to the selloff of the biotech sector over the past seven months, warrants a fresh look by investor," Nakae told investors in a research note. The analyst also started coverage of Dyne Therapeutics (DYN) with a Buy rating and $17 price target.
• Goldman Sachs analyst Chris Shibutani initiated coverage of Prometheus Biosciences (RXDX) with a Buy rating and $51 price target. The analyst views Prometheus as "uniquely positioned" to bring precision medicine to inflammatory bowel diseases and capture "significant" market share with its companion diagnostic approach leveraging a proprietary bioinformatics database and development platform. Shibutani also started coverage of Innoviva (INVA) with a Neutral rating and a price target of $16.