Arm initiated, Adobe 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:

• Phillip Securities upgraded Airbnb (ABNB) to Neutral from Reduce with a price target of $127, up from $112. The firm cites stabilizing travel demand for the upgrade. It sees “modest” sales growth through 2025 for Airbnb, driven by stable travel demand and growth in Asia Pacific and Latin America.
• Morgan Stanley upgraded Elf Beauty (ELF) to Overweight from Equal Weight with a price target of $134, up from $114. The firm contends that consensus “looks materially too low,” noting that its forecasts are 18% above consensus in terms of FY27 adjusted EBITDA.
• Seaport Research upgraded Paramount Skydance (PSKY) to Neutral from Sell with no price target. A “broad, technologically forward strategy” has been announced, as expected, but without significant details or updated financial projections, which the firm believes will be lower than when the merger was announced last year.
• Wolfe Research upgraded Cummins (CMI) to Outperform from Peer Perform with a $480 price target following the Q2 report. The firm believes that with growing data center exposure and leverage to an eventual truck upcycle, Cummins is “very well positioned right now.”
• Jefferies upgraded Generac (GNRC) to Hold from Underperform with a price target of $200, up from $150. The firm views the company’s strategic shift away from underperforming clean technology investments as a positive, which should increase margins.

Top 5 Downgrades:

• Melius Research downgraded Adobe (ADBE) to Sell from Hold with a $310 price target. The firm believes the software-as-a-service companies are in the “early innings” of multiple contraction given the shift to artificial intelligence, and cuts Adobe’s 2026 and 2027 estimates.
• HSBC downgraded Trade Desk (TTD) to Hold from Buy with a price target of $56, down from $84. The company’s Q2 report points to “structural issues,” the firm says, adding that Trade Desk is seeing a deceleration in growth despite a strong advertising market overall. Jefferies also downgraded Trade Desk to Hold from Buy with a price target of $50, down from $100.
• Lake Street downgraded Tandem Diabetes (TNDM) to Hold from Buy with a price target of $12, down from $75, following a transfer in analyst coverage. While the firm appreciates “the valuation is compelling” and thinks the company should probably demand a higher multiple, shares may be range-bound until faster U.S. growth, competitive share-taking and gross margin improvement to support AEBITDA profitability are seen.
• Raymond James downgraded Haemonetics (HAE) to Outperform from Strong Buy with a price target of $78, down from $105. The firm also removed the shares from its Analyst Current Favorite list. Haemonetics’ interventional technologies franchise declined in Q2 due to issues around selling execution, the firm says.
• BofA downgraded Lineage (LINE) to Underperform from Neutral with a price target of $42, down from $47, citing ongoing demand challenges, persistent macro uncertainty, cautiousness about occupancy growth, and limited visibility into multiple headwinds impacting the sector, including tariffs, interest rates, excess capacity, GLP1 drugs and government benefit reductions.

Top 5 Initiations:

• Seaport Research initiated coverage of Arm (ARM) with a Buy rating and $150 price target. The firm believes Arm is creating “significant value” for the semiconductor industry.
• Oppenheimer initiated coverage of Innoviva (INVA) with an Outperform rating and $35 price target. The firm believes the company’s specialty therapeutics and royalty commercial results will drive share outperformance.
• BTIG initiated coverage of Urban Edge (UE) with a Buy rating and $23 price target. Urban Edge’s 70-plus properties are largely concentrated in the Northeast Corridor, notes the firm, which sees the company providing investors with “a solid opportunity for growth” through the existing portfolio, redevelopment potential, and new investments.
• H.C. Wainwright analyst Brandon Folkes assumed coverage of Collegium Pharmaceutical (COLL) with a Buy rating and $44 price target. The firm views the growth potential of Jornay PM as underappreciated.
• Stifel resumed coverage of Mirum Pharmaceuticals (MIRM) with a Buy rating and $89 price target. The firm views Mirum as “unique” in rare disease biotech given that it is cash flow positive, has a high-growth commercial business, and a pipeline with “multiple credible” growth opportunities.