Wall Street is buzzing with a fresh round of research calls that could shake up your watchlist. Here’s a breakdown of today’s most important upgrades and downgrades, compiled by The Fly, with human insights you can actually use.
🔼 Top 5 Stock Upgrades
1. Reddit (RDDT) – Upgraded to Buy at Seaport Research
Target: $165
Seaport sees the post-earnings dip as a buying opportunity. While Q2 user growth may lag due to Google search algorithm changes, the firm expects solid long-term monetization ahead.
2. Twilio (TWLO) – Upgraded to Hold at HSBC
Target: $99 (from $77)
After a strong Q1 and raised full-year guidance, Twilio is no longer a sell candidate, though upside may be capped.
3. GE HealthCare (GEHC) – Upgraded to Neutral at UBS
Target: $73
UBS believes the worst-case scenario is now priced in, removing the case for a bearish stance.
4. Wendy’s (WEN) – Upgraded to Overweight at JPMorgan
Target: $15
The firm cites deep value potential at current price levels and believes the downside is limited.
5. Bloom Energy (BE) – Upgraded to Outperform at Mizuho
Target: $26
Mizuho sees asymmetric upside from utility sector demand and energy sector tailwinds.
🔽 Top 5 Stock Downgrades
1. Microsoft (MSFT) – Downgraded to Accumulate at Phillip Securities
Target: $480
Phillip remains bullish on Microsoft’s AI positioning but says recent stock performance warrants caution. Translation: it may be time to lock in gains if you’re already long.
2. Spotify (SPOT) – Downgraded to Reduce at Phillip Securities
Target: $600
Full valuation and limited upside were cited as reasons to step back, despite strong recent price action.
3. Block (SQ/XYZ) – Downgraded to Neutral at Macquarie
Target: $50
Macquarie is concerned about softness in consumer demand post-Q1. Growth looks limited in the short term.
4. Onto Innovation (ONTO) – Downgraded to Neutral at Cantor Fitzgerald
Target: $135 (from $250)
Despite no major shift in the fundamental outlook, rising competition has the firm urging caution ahead of earnings.
5. Huntsman (HUN) – Downgraded to Equal Weight at Wells Fargo
Target: $13 (from $17)
Tariff headwinds and broader industrial market weakness prompted a second estimate cut. Low visibility remains a risk.
Investor Takeaway:
Analysts are signaling a rotation in sentiment, trimming high-flyers like Microsoft and Spotify while turning more constructive on names like Reddit and Wendy’s. Reddit’s monetization story is catching fire, while Microsoft’s rally might need a breather.
