In This Article:
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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Jefferies upgraded Etsy (ETSY) to Hold from Underperform with a price target of $55, up from $45. The firm cites improved second half growth and a more balanced risk-reward on the shares for the upgrade of Etsy.
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Needham upgraded KLA Corp. (KLAC) to Buy from Hold as it lowered its 2025 wafer fab equipment estimate from $110B to $100B and launched a 2026 estimate at $100B. Needham sees 2025 as likely the peak WFE, saying the current semiconductor upcycle "will be lukewarm," and the next downturn could hit in the second half of 2026.
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Morgan Stanley upgraded Elf Beauty (ELF) to Overweight from Equal Weight with a price target of $153, up from $139. The stocks' valuation looks compelling relative to Elf's "outsized" long-term growth potential after a sharp pullback in the stock in the second half of 2024, the firm tells investors in a research note.
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Needham upgraded Instacart (CART) to Buy from Hold with a $56 price target, and added the shares to the firm's Conviction List. The stronger than expected results in 2024 suggest fears over competition and total addressable market pull forward are overblown, likely driven by Instacart's leading customer experience in grocery, which continues to improve, the firm tells investors in a research note.
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Evercore ISI upgraded Caterpillar (CAT) to In Line from Underperform with a $365 price target. The firm says that while it is hard to be a construction bull amid interest rates continuing to surprise to the upside, the stocks are down and investor expectations are now "greatly reduced."
Top 5 Downgrades:
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Jefferies downgraded Pinterest (PINS) to Hold from Buy with a price target of $32, down from $40. The firm downgraded Pinterest on expectations of slower Performance+ rollout and margin growth against its "more muted" advertising checks.
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JPMorgan downgraded Constellation Brands (STZ) to Neutral from Overweight with a price target of $203, down from $262, following the fiscal Q3 miss. While secular trends including premiumization and faster growth in legal-drinking age Hispanic consumers benefits the company's portfolio, this is balanced by near-term prolonged pressure on lower-income and Hispanic consumers and overhangs from lower consumption of alcohol by younger consumers, potential impacts from weight loss drugs, and tariff risk, the firm tells investors in a research note. Jefferies also downgraded Constellation Brands to Hold from Buy.
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TD Cowen downgraded STMicroelectronics (STM) to Hold from Buy with a price target of $25, down from $32. STMicroelectronics is a leader in power semis with its manufacturing network a long-term advantage, but its near-term revenue and margins are likely to remain muted, the firm tells investors in a research note.
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Morgan Stanley downgraded LiveRamp (RAMP) to Equal Weight from Overweight with an unchanged price target of $35. The firm sees limited catalysts for the company to accelerate growth and investor sentiment, and sees better risk/rewards elsewhere in its coverage.
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Truist downgraded Accolade (ACCD) to Hold from Buy with a price target of $7.03, down from $7.50, after Transcarent announced that it has entered into a definitive agreement to acquire the company for $7.03 per share in cash.