Apple downgraded, Snowflake upgraded: Wall Street's top analyst calls
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The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.
Top 5 Upgrades:
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UBS upgraded Snowflake (SNOW) to Buy from Neutral with a price target of $265, up from $210. The firm is becoming increasingly confident in the prospect that Snowflake is "just a few quarters into what could prove to be a multi-year enterprise investment cycle in the data layer."
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Oppenheimer upgraded Dollar General (DG) to Outperform from Perform with a $130 price target. Following the company's stronger than expected earnings report, the firm is increasingly confident in management's ability to drive a 2%-3% comp on a sustained basis and make progress toward its 6%-7% operating margin target in 2028 and 2029.
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Goldman Sachs upgraded Yum! Brands (YUM) to Buy from Neutral with an unchanged price target of $167. The firm cites the company's "best-in-class unit growth trajectory" versus most peers and its high franchise mix for the upgrade.
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Goldman Sachs upgraded XP Inc. (XP) to Buy from Neutral with a price target of $23, up from $17. The firm sees the company well positioned to benefit from operating leverage, with possible upside risks if revenue growth accelerates further.
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Citi upgraded Blueprint Medicines (BPMC) to Neutral from Sell with a price target of $129, up from $83, following the announcement that Blueprint will be acquired by Sanofi (SNY) in a cash transaction of $129 per share plus contingent value rights considerations for pipeline asset BLU-80.
Top 5 Downgrades:
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Needham downgraded Apple (AAPL) to Hold from Buy without a price target, and reduced estimates citing threats to Apple's near-term revenue and earnings growth. The firm believes that for the stock to work, Apple must have the catalyst of an iPhone replacement cycle, which Needham does not foresee in the next 12 months.
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BofA downgraded CrowdStrike (CRWD) to Neutral from Outperform with a price target of $470, up from $420. While the firm favors CrowdStrike's fundamentals and growth prospects, it believes the valuation "leaves only limited upside" from current levels, noting that its raised price target implies 3% upside potential at the after-hours closing price of $457. Canaccord and Evercore ISI also downgraded the stock to Neutral-equivalent ratings.
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Citi downgraded Constellation Energy (CEG) to Neutral from Buy with a price target of $318, up from $232. The firm cites valuation for the downgrade following Constellation's stock rally and Meta (META) power agreement announcement.
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National Bank downgraded Algonquin Power (AQN) to Sector Perform from Outperform with an unchanged $6.75 price target. The company's investor update provided visibility on three-year earnings reset, with earnings growth being driven largely by operating cost discipline and completion of rate cases, though with the stock up 40% this year and 16% today, a neutral stance is warranted, the firm tells investors in a research note.
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More cautious on the stock, Guggenheim downgraded Aptiv (APTV) to Neutral from Buy.