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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:

Morgan Stanley analyst Cecilia Furlong upgraded Abiomed (ABMD) to Equal Weight from Underweight with a price target of $380, up from $235, after Johnson & Johnson (JNJ) agreed to acquire all outstanding shares of Abiomed for $380.00 per share in cash along with a contingent value right of up to $35 per share in cash if additional revenue and clinical milestones are met.
BofA analyst Craig Siegenthaler upgraded KKR (KKR) to Buy from Neutral with a price target of $60, up from $57, as he is becoming more bullish in general on the alternative asset managers, especially relative to the exchanges.
Barclays analyst Gena Wang upgraded Arcturus Therapeutics (ARCT) to Equal Weight from Underweight with a price target of $25, up from $16, after the company announced a strategic collaboration with CSL Seqirus (CSLLY).
BTIG analyst Thomas Shrader upgraded Denali Therapeutics (DNLI) to Buy from Neutral with a $38 price target. The analyst says getting a second protein across progranulin "seems to de-risk the ETV/ATV part of the story."
Baird analyst Eric Coldwell upgraded Premier (PINC) to Outperform from Neutral with an unchanged price target of $41. The shares are trading at the company's initial public offering levels, or the low end of their historical range, Coldwell notes.

Top 5 Downgrades:

BofA analyst Michael Funk downgraded Twilio (TWLO) to Underperform from Buy with a price target of $85, down from $175. His recent DevSecOps survey suggests weakness, finding that 52% of respondents expect to spend the same or less with Twilio in 2023, while his latest channel checks point to greater competition and pricing pressure in the Communications Platform as a Service, or CPaaS, space.
Credit Suisse analyst Gautam Sawant downgraded Nasdaq (NDAQ) to Neutral from Outperform with a price target of $57, down from $66. The analyst cites the stock's "robust" outperformance relative to exchange peers for the downgrade.
Mizuho analyst Anthony Crowdell downgraded Avista (AVA) to Neutral from Buy with a price target of $40, down from $44. The analyst believes the company has "very few levers" to offset higher than expected inflation and interest rates that he expects through 2025.
Oppenheimer analyst Matthew Biegler downgraded Blueprint Medicines (BPMC) to Perform from Outperform without a price target after the company hosted an R&D day alongside Q3 earnings. Management made the case for AYVAKIT's blockbuster potential, but the launch has been a hard slog-and the company revised year-end guidance downward, the analyst notes.
Deutsche Bank analyst David Begleiter downgraded Ecolab (ECL) to Hold from Buy with a price target of $135, down from $165. The analyst says the stock's 65%-80% valuation premium to the S&P 500 Index is "too high."

Top 5 Initiations:

Macquarie analyst Sarah Hindlian-Bowler initiated coverage of Microsoft (MSFT) with a Neutral rating and $234 price target. The analyst sees near-term headwinds for Microsoft from slowness in the macro environment, cloud pull-in from COVID, slower PC sales, high energy costs and a soft consumer. The firm also started coverage of Snowflake (SNOW), Zscaler (ZS), Workday (WDAY), Palo Alto Networks (PANW), Okta (OKTA), Cloudflare (NET), Dynatrace (DT), Datadog (DDOG), and Check Point (CHKP) with Neutral ratings, and HubSpot (HUBS), Crowdstrike (CRWD) with Outperform.
BofA analyst Avikal Malik initiated coverage of Denali Therapeutics (DNLI) with a Buy rating and $40 price target. The company is "firing on all neurons" with its distinctive approach to developing therapies in neurodegeneration by identifying target based on genetic drivers of disease and validating pathway engagement through biomarkers, the analyst tells investors in a research note.
Evercore ISI analyst Umer Raffat initiated coverage of Legend Biotech (LEGN) with an Outperform rating, calling Carvykti the valuation driver "for now."
Jefferies analyst Stephen Volkmann assumed coverage of Hillman Solutions (HLMN) with a Buy rating with a price target of $10, down from $15. His revised 2023 EBITDA estimates are roughly down 11% to better reflect the house view of a consumer recession by Q3 of this year, but Hillman operates in his preferred market vertical of repair and remodel, which he expects to be relatively resilient in a consumer recession, Volkmann tells investors.
Cantor Fitzgerald analyst Brandon Folkes initiated coverage of Sorrento Therapeutics (SRNE) with an Overweight rating and $5 price target. Sorrento has the potential to deliver multiple best-in-class products in high-value areas of oncology, pain and infectious disease, Folkes tells investors in a research note.