Block downgraded, Wayfair 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:

• Erste Group upgraded Walmart (WMT) to Buy from Hold. Walmart expects sales to grow around 3%-4% this year and operating income should grow at a “slightly faster” rate of 3.5%-5.5% year-over-year, says the firm, which adds that sales and profit growth will be higher again in the next fiscal year.
• Deutsche Bank upgraded Palantir (PLTR) to Hold from Sell with a price target of $160, up from $80. The company reported an “impressive” quarter with accelerating revenue growth along with backlog and margin expansion, the firm tells investors in a research note.
• Citi upgraded Wayfair (W) to Buy from Neutral with a price target of $93, up from $32, following the Q2 report. The impact of tariffs on the business is less than expected and Wayfair is well positioned to win market share, the firm tells investors in a research note.
• Wells Fargo upgraded Sprouts Farmers Market (SFM) to Overweight from Equal Weight with a price target of $180, up from $175. The firm cites the recent pullback in the shares for the upgrade.
• Morgan Stanley upgraded CommScope (COMM) to Equal Weight from Underweight with a price target of $17, up from $4. The firm says the sale of CCS unit at a “substantial premium to traditional trading ranges” allows CommScope to remove its debt load. Raymond James also double upgraded CommScope to Outperform from Underperform with a $19 price target after the company solid its CCS unit for $10.5B.

Top 5 Downgrades:

• Morgan Stanley downgraded Block (XYZ) to Equal Weight from Overweight with an unchanged price target of $73. The firm views Block’s current valuation as fair with the shares trading above the price target.
• Morgan Stanley downgraded Akamai (AKAM) to Underweight from Equal Weight with an $85 price target following a transfer in coverage. The company’s sales growth will remain in the single-digits range with limited opportunities for margin expansion over the next 12 to 18 months, the firm tells investors in a research note.
• KeyBanc downgraded Inspire Medical (INSP) to Sector Weight from Overweight without a price target. The firm says its previous share thesis is “impaired” with the magnitude of the company’s 2025 guidance revisions. JPMorgan also downgraded Inspire Medical to Neutral from Overweight with a price target of $110, down from $195.
• BofA downgraded On Semi (ON) to Neutral from Buy with a price target of $56, down from $70. The company’s Q2 earnings painted a picture of a “muted” sales recovery, continued weakness in U.S. and European autos, increasing reliance on China EVs and limited to no gross margin recovery for several quarters, the firm tells investors.
• Morgan Stanley downgraded Selective Insurance (SIGI) to Underweight from Equal Weight with a price target of $72, down from $86. The firm says the company is “entering a challenging cycle” with uncertainties around reserving and underwriting.

Top 5 Initiations:

• Wells Fargo initiated coverage of QXO (QXO) with an Overweight rating and $30 price target. The firm views QXO as a long-term growth story with a path to $50B in sales by 2035.
• RBC Capital initiated coverage of Gildan Activewear (GIL) with an Outperform rating and $61 price target. The firm believes the company is executing well across all aspects of its business.
• Mizuho initiated coverage of MBX Biosciences (MBX) with an Outperform rating and $38 price target. The firm views the company’s lead asset canvuparatide as underappreciated.
• Stephens initiated coverage of APA Corp. (APA) with an Equal Weight rating and $24 price target. The firm sees risk of near-term migration from the S&P 500 Index, pointing out APA ranks as the third smallest member of the index.
• Stifel initiated coverage of D-Wave Quantum (QBTS) with a Buy rating and $26 price target. The firm calls D-Wave “a pioneering quantum computing company” as well as the first to deliver commercial quantum annealing systems.