AMD upgraded, PDD downgraded: Wall Street’s top analyst calls

The most talked about and market moving research calls around Wall Street are now in one place. Here are today’s research calls that investors need to know, as compiled by The Fly.

Top 5 Upgrades:

• Truist upgraded AMD (AMD) to Buy from Hold with a price target of $213, up from $173. Industry contacts have told the firm for the last few years that hyperscale customers deploying AI were experimenting with AMD’s technology as a “price check” to Nvidia (NVDA), “nothing more,” but contacts over the last month have increasingly noted that hyperscalers now are working with AMD in a partnership manner, the firm tells investors.
• Arete upgraded Qualcomm (QCOM) to Buy from Neutral with a price target of $200, up from $172. Qualcomm’s momentum should build starting in fiscal years 2027 given its emerging opportunities in advanced driver-assistance systems, robotics, personal artificial intelligence devices, datacenter, and industrial automation, the firm tells investors in a research note.
• Canaccord upgraded Okta (OKTA) to Buy from Hold with a price target of $120, up from $115, ahead of earnings. The analyst’s conversations indicate that the calendar Q2 strength for the software group has continued into July, and the firm is “generally constructive” on demand trends for the firm’s coverage heading into the print.
• JPMorgan upgraded Nio (NIO) to Overweight from Neutral with a price target of $8, up from $4.80, and placed the stock on “positive catalyst watch” in anticipation that three events towards year-end will “further lead the stock north.” Namely, the firm cites Q2 results due on September 2; the formal price announcement of the newly launched large premium SUV, the ES8, along with the annual Nio Day on September 20; and the Guangzhou Auto Show that starts on November 21, where it believes the company may showcase its upcoming new 5-seater BEV SUV, the Onvo L80.
• Wells Fargo upgraded Extra Space Storage (EXR) to Overweight from Equal Weight with an unchanged price target of $160. The firm is “modestly more constructive” on self-storage real estate investment trusts following the Q2 reports due to “modest” buy-side expectations into 2026 and “achievable” 2025 outlooks.

Top 5 Downgrades:

• New Street downgraded PDD Holdings (PDD) to Neutral from Buy with an unchanged price target of $120 post the Q2 report. The company’s Q2 revenue came in below New Street’s expectations and it cautioned that profitability could continue to fluctuate in the coming quarters, the firm tells investors in a research note.
• HSBC downgraded Keurig Dr Pepper (KDP) to Hold from Buy with a price target of $30, down from $42, following the company’s acquisition of JDE Peets (JDEPF). The firm says the company paid a “rich” valuation for JDE while the deal margin dilutive and comes with a heavy debt load.
• BofA downgraded Constellation Brands (STZ) to Underperform from Neutral with a price target of $150, down from $182. Beer industry consumption remains soft, creating risk to sales, margin and the multiple, says the firm, which contends that the stock is still “not cheap” despite shares being down 26% year-to-date.
• Citi downgraded Generac (GNRC) to Neutral from Buy with a price target of $219, up from $138. The firm cites valuation for the downgrade with the shares up sharply in the past months.
• Argus downgraded Skechers (SKX) to Hold from Buy. The firm cites the company having agreed to be taken private by 3G Capital for $9.42B or $63 per share.

Top 5 Initiations:

• B. Riley initiated coverage of Zscaler (ZS) with a Neutral rating and $275 price target. The firm views Zscaler as the “strong leader” in multiple high-growth secure access markets, but believes investors should wait for a pullback the buy the shares or greater visibility into the competitive landscape.
• BofA initiated coverage of Oklo (OKLO) with a Buy rating and $92 price target, implying 30% upside potential. Backed by both the DOE and data center operators, nuclear energy is regaining momentum and Oklo, which is building next-generation small nuclear reactors, is “well positioned to meet the rising energy needs of AI,” the firm tells investors.
• B. Riley initiated coverage of Varonis (VRNS) with a Buy rating and $80 price target. The firm believes that after resetting expectations earlier this year due to a migration of its customer base to its software-as-a-service platform, the company is well positioned for upside potential in revenue and earnings growth.
• B. Riley initiated coverage of NetScout (NTCT) with a Buy rating and $33 price target. The firm believes NetScout is positioned to benefit from the emergence of artificial intelligence in both of its markets.
• B. Riley initiated coverage of AvePoint (AVPT) with a Buy rating and $25 price target. The firm says investors should buy the stock because the company is gaining market share in the data backup market.