Investing.com -- Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week.
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Amazon
What happened? On Monday, Raymond James downgraded Amazon.com Inc (NASDAQ:AMZN) to Outperform with a $195 price target.
*TLDR: Raymond James downgrades Amazon. Eyes META (NASDAQ:META), UBER, MELI.
What’s the full story? Raymond James takes a fresh look at AMZN’s sprawling empire—supply chain, logistics, AI, and whatever else it’s trying next—and concludes the Street is asleep at the wheel. EBIT pressures in 2025 and 2026 are likely underestimated, thanks to uneven macro conditions, tariff risks, and a relentless appetite for spending. The firm downgrades AMZN, preferring investments with clearer returns.
Its supply chain and logistics expansion, particularly in China (30pct GMV, 15pct Ads) and rural U.S. DSP (11pct shipping), looks more like a costly detour than a shortcut, tariff stickiness notwithstanding.
Sure, AMZN’s AI ambitions are shiny and exciting, but rising EBIT risks and limited monetization make it hard to stay bullish. Raymond James finds better bets elsewhere: META, with its predictable AI product cycle, UBER, shaking off autonomous vehicle fears, and MELI, quietly printing money in LATAM.
AMZN may still win in the long run, but for now, the firm prefers to bet on horses already delivering.
Verra Mobility
What happened? On Tuesday, Baird upgraded Verra Mobility Corp (NASDAQ:VRRM) to Outperform with a $27 price target.
*TLDR: Baird sees high-moat opportunity despite uncertainty. Macro (BCBA:BMAm) tailwinds and resilience support growth.
What’s the full story? Baird acknowledges macro uncertainty around travel volumes but sees a compelling opportunity in recommending a high-moat business. The firm focuses on three core segments: Commercial (46% of 2024 revenue), providing toll transponders for rental cars; Government (44%), offering traffic cameras for speed, red lights, and school zones; and Parking (10%), delivering systems for university and municipal programs.
Despite headwinds, including a 21% stock pullback since October 2023, slowing TSA data, investor concerns over leverage, and slower-than-expected school zone camera rollouts, Baird views the business as resilient.
The firm highlights Verra Mobility’s strong competitive position in its Commercial and Government units. Recent developments, such as its NYC camera contract renewal—offsetting pricing pressure with potential additional installations—underscore its growth potential. Macro tailwinds, including lower interest rates and favorable FX trends, provide further support. Baird sees 2025 EPS estimates as stable, with margins improving in 2026 post-ERP implementation.
With the stock trading at an attractive 15X 2026E EPS, below its historical average, Baird expects Q1 results to align with 2025 guidance, driven by 5-6% revenue growth.
Cava Group
What happened? On Wednesday, Bernstein Societe General upgraded CAVA Group Inc (NYSE:CAVA) to Outperform with a $115 price target.
What’s the full story? Bernstein SocGen views Cava’s 30% YTD pullback as a mispricing of its long-term potential, with fundamentals intact. The firm sees Cava uniquely positioned to accelerate in a decelerating environment, driven by its high-income consumer base, disciplined pricing, and robust same-store sales growth potential.
With 25% margins and healthy cash-on-cash returns, Cava is poised to expand units by 15-18% in 2025-26, even amid economic uncertainty.
The firm upgrades Cava, as the market overly discounts near-term risks while undervaluing its compounding opportunity. Despite short-term volatility, valuation compression aligns with historical re-ratings of peers like Chipotle (NYSE:CMG) and Panera during downturns.
Bernstein SocGen believes Cava’s resilience, growth trajectory, and portability of its model make it a standout in the consumer space.
Utz Brands
What happened? On Thursday, DA Davidson upgraded Utz Brands Inc (NYSE:UTZ) to Buy with a $68 price target.
*TLDR: DA Davidson sees UTZ undervalued. Progress and momentum drive opportunity.
What’s the full story? Amid a tough environment for food stocks, the brokerage sees compelling risk-reward in UTZ. Key factors include the firming of UTZ’s share in salty snacks, driven by reduced promotional activity and strong performance in non-tracked channels, as well as the company’s over delivery on its supply chain transformation, which could fuel further upside if momentum persists. Additionally, UTZ’s valuation gap is wider than nearly all peers, presenting a rare opportunity.
The brokerage views UTZ as well-positioned to navigate industry headwinds, with improving fundamentals and operational execution. While the broader sector remains pressured, UTZ’s strategic advancements and relative undervaluation make it a standout. DA Davidson believes the current setup offers an attractive entry point, as UTZ’s progress and potential market share gains remain underappreciated.
Philip Morris Int’l
What happened? On Friday, UBS upgraded Philip Morris International Inc (NYSE:PM) to Neutral with a $170 price target.
What’s the full story? UBS upgrades PMI to Neutral, raising its target price to $170 from $130, following a strong 1Q25 performance and a raised FY25 EPS guidance. The bank increases its EPS estimates by 3%, citing upside potential from robust Smoke-Free gross margins and FX benefits. PMI’s resilient operating performance in a challenging macro environment underscores its ability to deliver high single-digit EPS growth over the medium term, justifying a higher FY26E P/E multiple of 19.0x, in line with the US Consumer Staples sector.
The bank no longer sees a Sell rating as appropriate, given PMI’s consistent execution and improved growth profile. While UBS moves to Neutral, it acknowledges the company’s strong momentum and operational resilience, positioning PMI as a stable player in uncertain times.
The upgrade reflects greater confidence in PMI’s ability to sustain its trajectory and create shareholder value.
