Wall Street is currently buzzing with significant research calls that investors should take note of. Today’s updates reflect a mix of upgrades and downgrades across various sectors, showcasing the dynamic sentiment in the market.
In a notable move, Raymond James has upgraded Capri Holdings (CPRI) to Outperform from Market Perform, setting a new price target of $25. The firm indicates that Capri is poised for a turnaround after struggling in previous years, citing improving demand signals and conservative guidance for fiscal year 2026, along with potential upside for FY27 estimates.
Citi has also made key upgrades, elevating Sunrun (RUN) to Buy from Neutral with an ambitious price target increase from $11 to $26. The firm highlights the dual benefits Sunrun is experiencing: rising electricity rates and enhanced leverage over suppliers due to a market shift towards third-party ownership (TPO), setting the stage for further growth.
Additionally, Citi upgraded Nextracker (NXT) from Neutral to Buy, now with a price target of $114, an increase from $66. The company has established a commanding position in tracker sales and recently acquired several adjacent businesses that could contribute significantly to revenue by fiscal year 2030.
Exelixis (EXEL) has also received an upgrade from Leerink, moving to Outperform from Market Perform with a price target raised to $48 from $38. This shift follows the recent ESMO presentation of the Phase 3 STELLAR-303 trial results. Despite a 12% drop in stock price following those results, the firm believes the trial unveiled several critical components supporting a longer-term investment strategy.
Lastly, Bank of America upgraded Eversource (ES) to Buy from Neutral with a price target increase from $73 to $85. The firm notes an “improving regulatory tone” across Eversource’s principal markets, anticipating approximately 6% EPS growth through 2029, thereby enhancing total return potential.
On the downgrade side, JPMorgan has lowered its rating on Goldman Sachs (GS) from Overweight to Neutral, while also adjusting the price target to $750 from $625. The firm expressed concern over Goldman’s current valuation, which it deems excessively high compared to European investment banks.
BNP Paribas Exane downgraded Verizon (VZ) to Neutral from Outperform with a $44 price target. The recent changes in leadership at Verizon have raised uncertainties about the company’s strategy and market share maintenance.
NuScale Power (SMR) faced a double downgrade, first from BNP Paribas Exane, which lowered the rating to Underperform from Neutral and adjusted the price target to $25 from $41. The firm projects significant costs under its current milestones. Citi further downgraded NuScale to Sell from Neutral, reducing its price target from $46 to $37.50, citing concerns over Fluor’s potential sales and a stretched valuation amidst an uncertain contract outlook with TVA.
TD Cowen also opted to downgrade Tempus AI (TEM), reducing its rating from Buy to Hold and adjusting the price target to $88, which is an increase from $72. The firm considers the stock fairly valued after its impressive 160% rally so far this year.
Lastly, Cleveland-Cliffs (CLF) was downgraded by Wells Fargo from Equal Weight to Underweight, maintaining a price target of $11. The firm views the recent 22% stock rally as indicative of “excess exuberance,” suggesting a more cautious approach moving forward.
These developments highlight a crucial juncture for investors, pointing to mixed sentiments and varying growth expectations across sectors in the current market landscape.
