C3 AI downgraded, Capri 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: 

• Deutsche Bank upgraded Palo Alto Network (PANW) to Buy from Hold with a price target of $220, up from $200. With the stock underperforming the broader cyber space by 15% year-to-date, investor concerns for Palo Alto are overblown, the firm tells investors in a research note.
• BofA upgraded Lumentum (LITE) to Neutral from Underperform with a price target of $135, up from $78. Lumentum is refocusing back to its best-of-breed optical component roots while prudently managing its lower margin optical transceiver mix under its relatively new CEO, the firm tells investors.
• JPMorgan upgraded Capri Holdings (CPRI) to Overweight from Neutral with a price target of $30, up from $24, after meeting with the company. Capri highlighted revenue improvement throughout fiscal 2026 and a growth inflection at Michael Kors in fiscal 2027, the firm tells investors in a research note.
• Barclays upgraded Corteva (CTVA) to Overweight from Equal Weight with a price target of $84, up from $75. The firm sees the company benefiting from solid acreage growth in Latin America. Corteva’s cost savings and innovation are boosting its profitability, the firm says.
• Goldman Sachs double upgraded CACI (CACI) to Buy from Sell with a price target of $544, up from $407. The firm views CACI as the best positioned in the defense space under the Trump administration.

Top 5 Downgrades:

• Oppenheimer downgraded C3 AI (AI) to Perform from Outperform without a price target. The company announced “extremely weak” preliminary fiscal Q1 results which imply a 35% sequential revenue decline, the firm tells investors in a research note.
• Keefe Bruyette downgraded Opendoor Technologies (OPEN) to Underperform from Market Perform with a $1 price target after its Q2 earnings miss. High retail interest may continue to support valuation, but the firm is downgrading the shares on expectation of widening losses in the second half of the year, coupled with uncertainty from the strategy pivot to weigh on the shares, which trade near the high end of historical multiples.
• Jefferies downgraded On Holding (ONON) to Underperform from Hold with a price target of $40, down from $50. The firm believes 2025 will represent the company’s peak sales growth rate.
• Morgan Stanley downgraded Insmed (INSM) to Equal Weight from Overweight with a price target of $126, up from $112. The firm believes Insmed’s current valuation largely captures the drug’s near-term opportunity.
• Wells Fargo downgraded Brown & Brown (BRO) to Equal Weight from Overweight with a price target of $101, down from $104. The company’s organic growth will be below peers in the near-term given its over-concentration to the south and property, the firm tells investors in a research note.

Top 5 Initiations: 

• Argus initiated coverage of O’Reilly Automotive (ORLY) with a Buy rating and $120 price target. The company has a history of growth and profitability, and the firm estimates 9%-10% EPS growth over the next two years, the firm tells investors in a research note.
• Goldman Sachs initiated coverage of Akamai (AKAM) with a Sell rating and $67 price target, which represents 5% share downside. The firm believes the company will be challenged to grow consistently in each of its segments.
• Citi initiated coverage of Travelers (TRV) with a Neutral rating and $291 price target as the firm rolled out coverage in North America insurance, expecting pricing and reinvestment tailwinds to ease but for earnings to remain resilient. The firm also started coverage of AIG (AIG), Arthur J. Gallagher (AJG), Everest Group (EG), Hamilton Insurance (HG), Hartford Financial (HIG), Marsh McLennan (MMC), Allstate (ALL), WTW (WTW) and Aon (AON) with Neutral ratings. Citi started Arch Capital (ACGL), Chubb (CB), Progressive (PGR), RenaissanceRe (RNR), Ryan Specialty (RYAN) and Brown & Brown (BRO) with Buy ratings
• Stephens initiated coverage of QXO (QXO) with an Overweight rating and $29 price target. Following the acquisition of Beacon earlier this year, QXO is now the second largest distributor of roofing and complementary products in North America, notes the firm, which believes shares do not fully reflect the successful execution of M&A and organic growth targets that it views as “achievable.”
• BofA initiated coverage of Karat Packaging (KRT) with a Neutral rating and $28 price target. While the firm likes Karat’s approach as it has transitioned to focusing on distribution from growing manufacturing, it views the shares as fairly valued.