Elf Beauty downgraded, Zscaler 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:

• Morgan Stanley upgraded Zscaler (ZS) to Overweight from Equal Weight with a price target of $320, up from $280. The firm believes the Red Canary acquisition enhances Zscaler’s AI security capabilities, and sees valuation upside for the shares.
• Wells Fargo upgraded Hubbell (HUBB) to Overweight from Equal Weight with a price target of $490, up from $445. The firm sees the company’s organic growth at 10% over the next four quarters, following negative 3% growth in the past four quarters.
• Wells Fargo upgraded Acuity Brands (AYI) to Overweight from Equal Weight with a price target of $380, up from $320. The firm cites its increased earnings growth expectations for the upgrade.
• Wells Fargo upgraded Ally Financial (ALLY) to Equal Weight from Underweight with a price target of $45, up from $37. The firm now sees less interest rate tail risk and says the company’s auto credit is trending positive.
• Piper Sandler upgraded Performance Food Group (PFGC) to Overweight from Neutral with a price target of $114, up from $90. The firm likes the stock’s risk/reward at current levels, saying execution of the company’s strategy and multi-year financial targets should drive upside.

Top 5 Downgrades:

• Deutsche Bank downgraded Elf Beauty (ELF) to Hold from Buy with a price target of $128, up from $121. The firm cites valuation for the downgrade with the shares up 150% from the April low.
• Morgan Stanley downgraded Lam Research (LRCX) to Underweight from Equal Weight with a price target of $92, down from $94, following an analyst transfer in coverage of the stock. Lam has regained market share led by NAND, China, and share gains at TSMC (TSM), but the firm is not confident about NAND and China growth into 2026, the firm tells investors.
• Morgan Stanley downgraded Fortinet (FTNT) to Underweight from Equal Weight with a price target of $67, down from $78. The firm believes the company’s consensus estimates for out year growth need to come down, likely pressuring the stock.
• Morgan Stanley downgraded Fortive (FTV) to Equal Weight from Overweight with a price target of $50, down from $90. The company’s organic growth has slowed to flat versus a mid-single-digit run-rate previously, the firm tells investors in a research note
• Stifel downgraded Simon Property (SPG) to Hold from Buy with an unchanged price target of $179. The firm cites valuation for the downgrade, noting the shares are trading above its price target, which reflects a 6.0% implied cap rate.

Top 5 Initiations:

• H.C. Wainwright initiated coverage of Tempus AI (TEM) with a Buy rating and $90 price target. The firm says the company has shown a track record of building a “strong healthcare technology business with impressive sales based on organic growth as well as complementary and synergistic acquisitions.”
• Evercore ISI initiated coverage of Inspire Medical (INSP) with an Outperform rating and $150 price target. The firm believes the headwinds are temporary and Inspire is positioned for a “strong recovery” in 2026 and beyond.
• Evercore ISI initiated coverage of Penumbra (PEN) with an Outperform rating and $300 price target. As the “leading thrombectomy player” in the neurovascular segment, Penumbra is set to accelerate its topline growth heading into FY26 as China headwinds clear and new products launch, the firm tells investors.
• JPMorgan initiated coverage of Heartflow (HTFL) with an Overweight rating and $36 price target. The firm believes Heartflow is one of the “clearest and most pioneering downstream beneficiaries” of the artificial intelligence revolution in the healthcare sector. Piper Sandler, Canaccord and Stifel also started coverage of the stock with Buy-equivalent ratings.
• Riley initiated coverage of WhiteFiber (WYFI) with a Buy rating and $34 price target. The firm sees “highly attainable” data center growth for the company along with a scaling cloud services business. Macquarie, Needham, Roth Capital, Craig-Hallum and Clear Street also started coverage of the stock with Buy-equivalent ratings, while Morgan Stanley initiated the name with an Equal Weight.