In a significant update on Wall Street, the latest research notes have highlighted key shifts in stock ratings that investors should closely monitor. The analysis provided covers notable upgrades and downgrades across various sectors, underscoring the changing landscape of investor sentiment.
Top Upgrades:
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Shopify (SHOP): TD Cowen upgraded Shopify from Hold to Buy, maintaining a price target of $159. The firm’s analysis points to the stock’s 30% decline year-to-date, suggesting that this downturn presents a favorable entry point for investors. They emphasized Shopify’s strong quarterly performance and ongoing growth trends, branding it as “the de facto modern-day eCommerce infrastructure.” Additionally, Mizuho followed suit, raising its rating to Outperform from Neutral, while keeping its price target steady at $150.
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BorgWarner (BWA): Deutsche Bank upgraded the stock from Hold to Buy, setting a new price target of $82, significantly higher than the previous $46. The firm indicated that BorgWarner’s entry into the AI data center market marks a substantial strategic pivot for the company.
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Analog Devices (ADI): Barclays upgraded Analog Devices from Equal Weight to Overweight and raised the price target from $315 to $375. The firm noted that Analog Devices has the most extensive industrial exposure within the analog sector, and its sales growth closely correlates with the Purchasing Managers’ Index.
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MercadoLibre (MELI): Acknowledging recent underperformance, JPMorgan upgraded MercadoLibre from Neutral to Overweight, increasing the price target from $2,650 to $2,800, citing valuation as a key reason for the upgrade.
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Fastly (FSLY): William Blair elevated Fastly from Market Perform to Outperform. The upgrade was driven by encouraging quarterly results boosted by a rising contribution from agentic AI traffic, although no price target was specified.
Top Downgrades:
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Coinbase (COIN): Monness Crespi downgraded Coinbase from Buy to Sell, with a price target set at $120. The firm expressed concerns over the company’s recovery trajectory, suggesting that previous optimistic assumptions about profitability were misguided and noting possible softness through early 2026.
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Kraft Heinz (KHC): JPMorgan decreased Kraft Heinz’s rating from Neutral to Underweight, adjusting the price target from $24 down to $22. Although the firm reported a hopeful fourth-quarter performance, outlooks for organic sales growth and earnings through 2026 fell short of market expectations.
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Icon (ICLR): BofA downgraded Icon from Neutral to Underperform with a significantly reduced price target of $75, down from $195. This decision follows revelations of an internal board investigation into accounting practices that might have inflated revenue projections for the upcoming fiscal years. Leerink also downgraded Icon to Market Perform from Outperform, with a new price target of $105, reduced from $220.
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Inspire Medical (INSP): Wells Fargo dropped Inspire Medical from Overweight to Equal Weight with a new price target of $70, down from $145. Despite a stabilizing revenue outlook due to the availability of its IV system, concerns about physician reimbursement are expected to dampen stock performance in the near term. Baird also lowered Inspire to Neutral from Outperform, adjusting its price target from $130 to $74.
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Humana (HUM): RBC Capital downgraded Humana from Outperform to Sector Perform, cutting the price target from $322 to $189. The firm cited the company’s significant growth amidst a challenging reimbursement environment, viewing the current risk/reward equation for Humana shares as balanced.
These shifts in ratings reflect ongoing adjustments by financial analysts responding to earnings reports, industry dynamics, and broader market trends, offering investors critical insights into potential strategies for navigating their portfolios.
