Humana initiated, Paycom 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:

• TD Cowen upgraded Paycom (PAYC) to Buy from Hold with a price target of $258, up from $246. The firm cites positive indications from its 2025 human capital management survey and the company’s commentary at a recent conference on its near-term capex expectations for the upgrade.
• Morgan Stanley upgraded Applied Materials (AMAT) to Overweight from Equal Weight with a price target of $209, up from $172. The firm revised up its 2026 wafer fab equipment sales forecast from up 5% year-over-year to up 10%, with the revision “almost entirely” in memory, where its base case is now close to its prior bull case. Morgan Stanley also upgraded Lam Research (LRCX) to Equal Weight from Underweight with a price target of $125, up from $92.
• Evercore ISI upgraded Repligen (REGN) to Outperform from In Line with a price target of $155, up from $130. The firm believes the bioprocessing solutions end market is “relatively insulated” from macro headwinds and is now back now back to a normal high-single-digit growth cadence.
• Wells Fargo upgraded Brinker (EAT) to Overweight from Equal Weight with a price target of $175, up from $165. Investor sentiment on the restaurants is poor, but Brinker offers turnaround momentum, and the shares are “too cheap” at current levels, the firm tells investors in a research note.
• UBS upgraded FactSet (FDS) to Buy from Neutral with a price target of $425, down from $480. The company’s “sticky franchise” is being underappreciated at current share levels, the firm tells investors in a research note.

Top 5 Downgrades:

• Morgan Stanley downgraded KLA Corp. (KLAC) to Equal Weight from Overweight with a price target of $1,093, up from $928. KLA’s operations have strengthened through the year as the company’s growth drivers have “gone from strength to strength,” but the firm sees relative outperformance as “hard to call” at a 30% valuation premium versus Applied and Lam.
• Piper Sandler downgraded Crocs (CROX) to Neutral from Overweight with a price target of $75, down from $95. The shares are likely to be range-bound until the company’s sales stabilize, the firm tells investors in a research note.
• BNP Paribas Exane downgraded Keurig Dr Pepper (KDP) to Underperform from Neutral with a $24 price target, calling the company’s agreement to merge with JDE Peet (JDEPF) “one of the worst-received deals by investors we can recall in consumer staples.”
• Raymond James downgraded Lennar (LEN) to Underperform from Market Perform without a price target following the fiscal Q3 report and reduced outlook.
• Raymond James downgraded Everest Group (EG) to Outperform from Strong Buy with a price target of $375, down from $410. The firm has a more cautious outlook for the company’s growth as it pivots to capital management activities, including share repurchases.

Top 5 Initiations:

• Evercore ISI initiated coverage of Humana (HUM) with an In Line rating and $295 price target. The firm has near-term concerns over the potential for mispricing for Medicare Advantage in 2026.
• Citi initiated coverage of Ryder (R) with a Buy rating and $217 price target. The firm sees attractive long-term growth drivers for the transportation equipment manufacturing, leasing and shipping group.
• Wells Fargo initiated coverage of Natera (NTRA) with an Equal Weight rating and $175 price target. The firm’s enthusiasm for Signatera’s growth potential in molecular residual disease is offset by less conviction in Natera’s margin and cash flow outlook.
• Wells Fargo initiated coverage of Guardant Health (GH) with an Overweight rating and $72 price target. The firm is positive on the company’s oncology-focused portfolio with “multiple patient touchpoints.”
• Jefferies initiated coverage of Iron Mountain (IRM) with a Buy rating and $120 price target. The company’s strategic transformation has accelerated growth across data centers, digital solutions, and asset lifecycle management, the firm tells investors in a research note.