SA analyst upgrades/downgrades: OXY, AMZN, MDXG, CHTR

A handful of companies on Wall Street have seen recent Seeking Alpha analyst activity, including upgrades and downgrades. Amazon (AMZN) has been downgraded despite attractive valuations due to mixed fundamental signals and technical indicators, particularly concerning its commerce business deceleration. Similarly, Occidental Petroleum (OXY) faces a downgrade amid weak oil prices and underwhelming performance metrics. Conversely, analysts have upgraded MiMedx (MDXG) based on its strong clinical evidence and market position despite reimbursement challenges. Charter Communications (CHTR) received the strongest upgrade, with analysts believing the recent selloff represents a significant disconnection between market fear and the company’s solid free cash flow generation.

Upgrades

• Charter Communications, Inc. (CHTR): Upgrade to Strong Buy by Seeking Profits. The analyst believes the market’s 15% selloff following disappointing Q2 results is disproportionate to the company’s fundamental value, with shares now offering an 11% free cash flow yield.

  “At this point, I believe valuation is becoming very disconnected from fundamentals, and this is a time for patient investors to be buying into the decline. As such, I am moving shares up to a Strong Buy. This selloff is overdone, and with share buybacks ramping up, CHTR will, in my view, recover losses over time and deliver a strong outcome for investors willing to buy into the fear.”

• MiMedx Group, Inc. (MDXG): Upgrade to Buy by Stephen Ayers. Despite reimbursement challenges slowing revenue growth, the company’s robust clinical evidence and leading market share position it well for future regulatory tailwinds.

  “While MiMedx’s revenue growth has decelerated, growth in its surgical products and recent regulatory developments impacting its skin products bode well for the future. The company has been consistently profitable in the past couple of years, alleviating concerns of shareholder dilution and permitting the pursuit of growth opportunities, be it in other markets or via M&A. Critically, MiMedx’s evidence-backed portfolio provides a moat should others become more interested in advanced wound care products following more favorable reimbursement.”

Downgrades

• Amazon.com, Inc. (AMZN): Downgrade to Market Perform/Hold by Hunting Alpha. The analyst points to mixed signals in fundamentals and technical indicators, despite the stock appearing attractively valued.

  “AMZN stock is attractively valued but that is insufficient to make me a buyer ahead of the Q2 FY25 earnings release. This is because I am getting a lot of mixed signals when I think through its fundamental outlook. I suspect that its Commerce business is likely to see continued growth deceleration, with some volume growth being offset by continued falls in average selling prices. I also expect higher capex spending upgrades that may be good longer term, but would erode FCF margins even further in the short to medium term.”

• Occidental Petroleum Corporation (OXY): Downgrade to Hold by Mike Zaccardi. The analyst cites weak oil prices, underwhelming performance, and a challenging profit backdrop as key factors in the rating change.

  “I have a hold rating on OXY. I was hopeful that this $44 billion market cap E&P name would turn things around, but the current valuation, ongoing challenging operating environment, and unimpressive set of technicals point to a cautious stance ahead of the second-quarter earnings report. With limited near-term catalysts and a soft operating environment, I see better opportunities elsewhere in the energy sector.”