What has Wall Street been buzzing about this week? Here are the top 5 Buy calls and the top 5 Sell calls made by Wall Street’s best analysts during the week of May 12-16.
1. Wolfe upgrades Pinterest to Outperform on “reasonable” valuation
Wolfe Research upgraded Pinterest (PINS) to Outperform from Peer Perform with a $40 price target. The firm says Q1 earnings and Q2 guidance gave Wolfe, which in mid-March had noted the improving fundamentals from its recent performance ads product cycle, further proof points on the fundamental health of the platform. Now that the U.S. and China have struck a trade deal, the firm sees the macro-overhang as more muted than before and views the current valuation as “highly reasonable,” the firm added.
2. Wells upgrades Cisco to Overweight on AI order momentum
Wells Fargo upgraded Cisco (CSCO) to Overweight from Equal Weight with a price target of $75, up from $72, following the fiscal Q3 report. The firm cites the company’s accelerating artificial intelligence momentum for the upgrade. Cisco’s orders at three out of the six largest hyperscalers grew triple-digits year-over-year in Q3 and it saw acceleration across all six customers. In addition to webscale momentum, Cisco appears to be a visible player in large-scale sovereign AI opportunity, contends wells. With increasing confidence in a normalizing order growth recovery, the firm sees Cisco as presenting a continued earnings upside and “value re-rate story.”
3. Argus upgrades Wayfair to Buy on market share gain expectations
Argus upgraded Wayfair (W) to Buy from Hold with a $40 price target. Reluctant to purchase new homes at elevated prices, many homeowners are upgrading furnishings, notes the analyst, who expects the trend to benefit Wayfair, which the firm views as likely to gain market share as a growing number of home goods are purchased online. Argus cites the company’s “strong” distribution network and “vast product offerings.”
4. Monness Crespi upgrades Coinbase with Q2 guidance looking “conservative”
Monness Crespi upgraded Coinbase (COIN) to Buy from Neutral with a $300 price target, telling investors that the company’s Q2 guidance for $600M-$680M in subscription and services revenue now looks “increasingly conservative” considering the strength in underlying assets, especially Ethereum and Solana, during and following the fiscal Q2 period, which should boost blockchain rewards and custody line items.
5. Oppenheimer upgrades Charter to Outperform, calls Cox deal “major positive”
Oppenheimer upgraded Charter (CHTR) to Outperform from Perform with a $500 price target after the company announced it is acquiring Cox Communications at a purchase price that values the latter at $34.5B. Charter has been improving its balance sheet and will deleverage by another half turn upon deal close, notes the firm. Oppenheimer expects substantial buybacks and a step down in capital expenditures will drive a “significant improvement” in free cash flow in 2027. The firm calls the Cox deal a “major positive” and estimates about $100 in free cash flow per share in 2030.
Top 5 Sell Calls:
1. Target downgraded to Underperform at Bernstein
Bernstein downgraded Target (TGT) to Underperform from Market Perform with a price target of $82, down from $97. The firm says the “going is getting tough for Target.” Credit card data “paints a bleak picture” for the company’s Q1, dampened by poor weather, weak consumer sentiment, and a DEI-related strike in March, the firm tells investors in a research note. Bernstein believes this is all before tariffs “enter the frame,” which means that Target will likely have to lower guidance for the full year. It thinks Target faces a difficult trade off between stimulating sales growth and maintaining margins. The firm’s analysis shows that it is “unlikely to achieve both and, increasingly, neither.”
2. Wayfair cut to Sell at Loop Capital on tariff-related uncertainty
Loop Capital downgraded Wayfair to Sell from Hold with a $35 price target. The stock rallied 20% after China tariffs were cut from 145% to 30%, but the firm’s downgrade is driven by uncertainty related to tariffs. The market is pricing in a much lower tariff for Vietnam than the original “reciprocal” rate of 46%, and most investors believe the rate will be well below the China rate, but there is so much uncertainty around tariffs that the firm recommends investors avoid Wayfair’s stock, Loop added.
3. DA Davidson cuts CoreWeave to Underperform, says “not a business worth scaling”
DA Davidson downgraded CoreWeave (CRWV) to Underperform from Neutral with an unchanged price target of $36. The first detailed earnings report, with updated actuals and guidance, confirms the firm’s concern that CoreWeave is “not a business worth scaling, and we question the value of the equity.” DA Davidson believes CoreWeave is a business not worth scaling if it can only generate 5% returns on its assets and has to pay 12.5% interest on the debt necessary to acquire those assets, arguing that the notion that “this destruction of capital is a matter of scale does not hold up” for a company at a $4B revenue run rate already operating 33 data centers.
4. Enphase Energy downgraded to Underweight from Overweight at Barclays
Barclays double downgraded Enphase Energy (ENPH) to Underweight from Overweight with a price target of $40, down from $51. The firm says the possible repeal of Section 25D “has flown under the radar and is now taking a bite out of ENPH.” Section 25D enables individual homeowners to claim the 30% tax credit for solar energy and storage installations, Barclays tells investors in a research note. The firm says that as Enphase has been dominant in the non-third-party ownership market and its market share is on the weaker side in the TPO market, the elimination of this tax credit negatively impacts the company’s outlook. The residential solar market will likely evolve into over 90% third-party ownership starting next year if Section 25D is repealed, predicts Barclays. It estimates Sunrun (RUN) is the largest third-party owner, followed by Sunnova Energy (NOVA).
Enphase Energy downgraded to Underperform from Market Perform at BMO Capital
BMO Capital downgraded Enphase Energy to Underperform from Market Perform with a price target of $39, down from $46, following the release of the House Ways and Means Committee tax plan. The plan, if adopted, will eliminate the Section 25D Residential Clean Energy Credit for homeowners who take loans or pay cash for their residential solar and battery systems at the end of 2025 and the firm believes elimination of the 25D credit impacts Enphase “disproportionately,” the firm tells investors. This would shrink the overall demand for U.S. residential solar in 2026, further contributing to Enphase’s loss of market share, BMO argues.
5. SolarEdge downgraded to Underperform at Northland
Northland downgraded SolarEdge (SEDG) to Underperform from Market Perform with an unchanged price target of $15.50. Shares are “up a lot” since April 25 with the company in the midst of a turnaround in a difficult macro environment with uncertainty in U.S. tax policy as well as tariff uncertainty, notes the firm. While tariff risk is diminished, it has “not gone way,” adds Northland, which lowered its rating due to valuation.
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