Arm downgraded, Arista Networks upgraded: 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:

• Rosenblatt upgraded Arista Networks (ANET) to Buy from Neutral with a price target of $180, up from $165, based on increased confidence in the XPO strategy announced at OFC and better understanding of the sizing of the large front-end wins with Google (GOOGL) and Anthropic.
• Barrington upgraded FuboTV (FUBO) to Outperform from Market Perform with a $16 price target. The company’s updated financial outlook calls for EBITDA of $80M-$100M for fiscal 2026, improving to $300M in fiscal 2028, the firm tells investors in a research note.
• Citi upgraded Wingstop (WING) to Buy from Neutral with a price target of $230, down from $286. Citi does not see an “immediate solution” for a same-store-sales rebound at Wingstop, but easing compares and the company’s “self-help” actions could bring a rebound in the second half of 2026.
• Citizens upgraded Rocket Lab (RKLB) to Outperform from Market Perform with an $85 price target. The company’s launch, defense space systems, and “clearer path toward higher-value” space services creates a risk/reward profile that is “meaningfully in Rocket Lab’s favor,” the firm tells investors in a research note.
• Jefferies upgraded MercadoLibre (MELI) to Buy from Hold with a price target of $2,600, down from $2,800. Earnings downgrades driven by margin compression have driven valuations to “historical absolute and relative lows,” but higher investment is paying off through stronger revenue drivers, the firm tells investors.

Top 5 Downgrades:

• Morgan Stanley downgraded Arm (ARM) to Equal Weight from Overweight with a price target of $150, up from $135.While Arm’s strategic positioning and early design delivery “have been exemplary,” its commercial ramp will take time, the firm tells investors in a research note.
• Scotiabank downgraded Equinix (EQIX) to Sector Perform from Outperform with a price target of $1,050, up from $997. The firm cites valuation for the downgrade following the recent rally.
• Citizens downgraded Wix.com (WIX) to Market Perform from Outperform without a price target. The company’s Dutch auction that retired 29.7% of its shares outstanding “meaningfully reduced” its cash position, the firm tells investors in a research note.
• UBS downgraded Western Alliance (WAL) to Neutral from Buy with a price target of $75, down from $106, after transfer in analyst coverage. The firm sees “no reason to seek out risk in a group already fraught with concern.”
• TD Cowen downgraded Soleno Therapeutics (SLNO) to Hold from Buy with a price target of $53, down from $85, after Neurocrine (NBIX) announced a deal to acquire the company for $2.9B or $53 per share in cash. Stifel, Oppenheimer and Wolfe Research also downgraded the stock to Neutral-equivalent ratings.

Top 5 Initiations:

• BofA reinstated coverage of Tractor Supply (TSCO) with a Neutral rating and $47 price target. The environment has clearly become more uncertain, and the firm expects prior headwinds will continue to limit EPS upside.
• BTIG initiated coverage of MSG Entertainment (MSGE) with a Buy rating and $70 price target. The firm is positive on the company’s position “at the crosshairs” of the live entertainment secular tailwind with premium assets in New York City and a globally recognized brand.
• Goldman Sachs initiated coverage of PayPay (PAYP) with a Buy rating and $29 price target. The firm views the company as a top-performing fintech within its coverage, given its leading position in Japan’s QR code payments with 65% share as of 2024, scalable model and expansion to credit cards/financial services, which have resulted in 20% CAGR growth and higher profit margins in recent years, the firm tells investors in a research note.
• Leerink initiated coverage of Sutro Biopharma (STRO) with an Outperform rating and $38 price target. The firm believes Sutro’s mid-2026 data could de-risk STRO-004 and help validate its ADC platform.
• BofA initiated coverage of Navan (NAVN) with a Buy rating and $17 price target, citing the strong growth of its AI-led platform integrating corporate travel, expense and payments.