Investors are keeping a close eye on Wall Street’s latest research calls, as upgrades and downgrades from top firms continue to influence market movements. Analysts at Jefferies, BTIG, Citi, and Morgan Stanley have revised their ratings on several high-profile stocks, while firms like Northland, RBC Capital, and Barclays have issued key downgrades.
Below is a summary of the most impactful stock upgrades and downgrades that investors need to watch.
Top 5 Stock Upgrades
1. Roku (ROKU) – Upgraded to Hold from Underperform (Jefferies)
- New Price Target: $100 (up from $55)
- Reasoning: Roku’s Q4 outperformance and 25% YoY platform growth exceeded expectations. The company’s third-party integrations and improving ad fill rates are driving its success.
2. Snowflake (SNOW) – Upgraded to Buy from Neutral (BTIG)
- New Price Target: $220
- Reasoning: After dealing with cloud optimization headwinds for over two years, Snowflake is seeing an improving demand backdrop heading into 2025.
3. Lam Research (LRCX) – Upgraded to Positive from Neutral (Susquehanna)
- New Price Target: $125 (up from $75)
- Reasoning: The firm introduced a 2028 EPS target of $6-$7, emphasizing 30% free cash flow margins and a $9.2 billion buyback authorization to benefit investors.
4. NXP Semiconductors (NXPI) – Upgraded to Buy from Neutral (Citi)
- New Price Target: $290 (up from $210)
- Reasoning: Citi predicts a rebound in the analog semiconductor sector, with NXPI positioned for significant growth as sales recover.
5. SolarEdge (SEDG) – Upgraded to Equal Weight from Underweight (Morgan Stanley)
- New Price Target: $18 (up from $11)
- Reasoning: Morgan Stanley cites stronger free cash flow generation and a clearer strategic direction, reducing liquidity concerns for the company.
Top 5 Stock Downgrades
1. SolarEdge (SEDG) – Downgraded to Underperform from Market Perform (Northland & BMO Capital)
- New Price Target: $15 (Northland), $15 (BMO, up from $13)
- Reasoning: Analysts believe SolarEdge is lagging in new product development, customer service, and reliability, requiring time to rebuild investor confidence.
2. Celanese (CE) – Downgraded to Sector Perform from Outperform (RBC Capital)
- New Price Target: $56 (down from $84)
- Reasoning: Celanese’s overexposure to auto markets has created earnings headwinds, with lower vehicle production and high inventories weighing on performance.
3. Grab Holdings (GRAB) – Downgraded to Outperform from Buy (Daiwa)
- New Price Target: $5.20 (down from $6)
- Reasoning: Grab Holdings’ 2025 EBITDA guidance ($440M-$470M) fell short of investor expectations, raising concerns about growth prospects.
4. Axon (AXON) – Downgraded to Hold from Buy (Craig-Hallum)
- New Price Target: $625
- Reasoning: The firm sees a more balanced risk/reward after a strong rally in Axon’s stock, which now trades at all-time high valuations.
5. DTE Energy (DTE) – Downgraded to Equal Weight from Overweight (Barclays)
- New Price Target: $135 (down from $137)
- Reasoning: Barclays is shifting its preference in Michigan utilities, now favoring CMS Energy (CMS) as a better investment opportunity.
What This Means for Investors
Wall Street’s latest upgrades and downgrades highlight key trends in the market:
- Tech stocks like Roku, Snowflake, and Lam Research are seeing renewed optimism.
- Semiconductors are expected to rebound, with NXP Semiconductors leading the way.
- SolarEdge’s struggles show that renewable energy stocks face challenges amid changing market dynamics.
- Auto and utility sectors face short-term headwinds, as seen with Celanese and DTE Energy.
For investors, these research calls provide valuable insights into shifting market sentiment, helping them make informed decisions on portfolio adjustments.
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