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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:

Atlantic Equities analyst Edward Lewis upgraded McDonald's (MCD) to Overweight from Neutral with a price target of $278, up from $245. The quick service restaurant, or QSR, channel has proven resilient during periods of economic weakness and McDonald's operates a resilient business and also has a wealth of experience at managing through such challenging periods, Lewis tells investors.
Raymond James analyst Olivia Tong upgraded Ulta Beauty (ULTA) to Strong Buy from Outperform with a price target of $485, up from $475, citing a prioritization of companies in her beauty, personal care and household products coverage with diverse portfolios at a wide range of price points that can better withstand trade-down and greater exposure to upper-income consumers who can better absorb higher costs.
DA Davidson analyst Michael Baker upgraded O'Reilly Automotive (ORLY) to Buy from Neutral with a price target of $740, up from $700. The analyst increased estimates saying auto parts are navigating consumer headwinds better than other areas and that O'Reilly is a "long term share gainer."
Bank of America analyst Vivek Arya upgraded Synopsys (SNPS) and Cadence Design (CDNS) to Neutral from Underperform with price targets of $360 and $175, up from $325 and $160, respectively. The analyst expects demand for chip design software/verification to "grow unabated" on secular growth in research and development intensity.
Bank of America analyst Ebrahim Poonawala upgraded Goldman Sachs (GS) to Buy from Neutral with a price target of $380, up from $360. His ratings change does not indicate an improved outlook for bank stocks in general, but is instead based on Goldman's attractive relative risk/reward as he sees the stock being well-positioned to outperform in what is likely to be a worsening economic backdrop that could weigh more materially on the EPS outlooks for its "balance sheet lending heavy peers."

Top 5 Downgrades:

JPMorgan analyst Matthew Boss downgraded Bath & Body Works (BBWI) to Neutral from Overweight with a price target of $30, down from $63. The analyst sees incremental downside potential risk in a fiscal 2023 "consumer-led recession scenario."
Bank of America analyst Vivek Arya downgraded Qorvo (QRVO) and Skyworks (SWKS) to Underperform from Neutral with price targets of $95 and $105, down from $125 and $130, respectively. Arya cited slowing growth in 5G smartphones, rising competition from Qualcomm (QCOM) and less pricing power than peers given exposure to large phone maker. The analyst also downgraded Texas Instruments (TXN) and Teradyne (TER) to Neutral from Buy.
Morgan Stanley analyst James Faucette downgraded Upstart (UPST) to Underweight from Equal Weight with a price target of $19, down from $88. The analyst says the company's "deteriorating" relative underwriting performance and increasing required returns from institutional partners have shifted his view to "incrementally negative." He sees downside risk to estimates and valuation as Upstart's platform's cyclicality is tested.
Barclays analyst Gaurav Jain downgraded Altria Group (MO) to Underweight from Equal Weight with a price target of $36, down from $53. Altria looks like a traditional tobacco business following the FDA's denial of Juul with "very little in the way" of next generation products, Jain told investors in a research note.
Raymond James analyst Olivia Tong downgraded Sally Beauty (SBH) to Underperform from Market Perform without a price target, telling investors that the company has the highest exposure to the low-income consumer in her beauty, personal care and household products coverage.

Top 5 Coverage Initiations:

Redburn analyst Alex Haissl initiated coverage of Amazon.com (AMZN) with a Buy rating and $270 price target, citing his view that Amazon Web Services, or AWS, is worth $3T, or "almost 3x Amazon's current market cap."
Redburn analyst Alex Haissl initiated coverage of Microsoft (MSFT) with a Buy rating and $370 price target. Azure is "a key part of Microsoft's positive equity story" that is worth $1T, but it is "a technology laggard" compared to Amazon's AWS and Google's (GOOGL) GCP, Haissl tells investors. Despite Azure's deficits, he thinks the market underestimates long-term growth for infrastructure providers and that a $1T value for the cloud unit is not priced in Microsoft's current valuation.
Redburn analyst Alex Haissl initiated coverage of Snowflake (SNOW) with a Neutral rating and $125 price target. He views competitor Databricks as better positioned given that its core capabilities are in the fastest growing segments of the market. The analyst also started coverage of MongoDB (MDB) with a Sell rating and $190 price target.
Barclays analyst Brandt Montour initiated coverage of the U.S. gaming, lodging and leisure industry with a Positive view. The analyst put Overweight ratings on Las Vegas Sands (LVS), Caesars (CZR), Penn National Gaming (PENN) and Boyd Gaming (BYD), and Equal Weight ratings on Wynn Resorts (WYNN), DraftKings (DKNG) and Bally's (BALY).
Argus analyst Jim Kelleher initiated coverage of ASML (ASML) with a Buy rating and $590 price target. The analyst is positive on the company based on the growing demand for the advanced semiconductor capital equipment solutions and a healthy industry environment.