Intel upgraded, Reddit initiated: 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: 

• HSBC upgraded Intel (INTC) to Buy from Hold with a price target of $95, up from $50. While foundry deals have driven a 60% rally in the shares, Intel’s “significant” server processor momentum is not priced into the stock, the firm tells investors in a research note. BNP Paribas also upgraded Intel, but to Neutral from Underperform with a $60 price target.
• KeyBanc upgraded CrowdStrike (CRWD) to Overweight from Sector Weight with a $525 price target. The firm sees Mythos as a catalyst for accelerating AI-driven cybersecurity demand.
• Rothschild & Co Redburn upgraded Colgate-Palmolive (CL) to Buy from Neutral with a price target of $100, up from $93. The firm says its analysis of the home and personal care space following the recent selloff yields a favorable outlook for Colgate.
• Morgan Stanley upgraded Arrowhead (ARWR) to Overweight from Equal Weight with a price target of $100, up from $78. The firm sees the stock’s momentum continuing ahead of Phase 3 severe hypertriglyceridemia data in Q3.
• Raymond James upgraded Ball Corp. (BALL) to Outperform from Market Perform with a $73 price target. The firm views the company as the most “buttoned up” on cost pass-throughs and hedges.

Top 5 Downgrades:

• Wolfe Research downgraded Exxon Mobil (XOM) to Peer Perform from Outperform without a price target. The firm cites valuation for the downgrade following the stock’s strong share performance.
• Baird downgraded Mohawk Industries (MHK) to Neutral from Outperform with a price target of $118, down from $156. The firm’s Q1 channel checks indicate residential building product activity remains lackluster, with spending weakness continuing and project indicators mixed.
• Wedbush downgraded Passage Bio (PASG) to Neutral from Outperform with a price target of $8, down from $32. The firm cites Monday’s regulatory update that a randomized controlled registrational study will be required to support PBFT02’s FDA approval for the treatment of FTD-GRN. TD Cowen also cut Passage Bio to Hold from Buy with no price target.
• UBS downgraded Xylem (XYL) to Neutral from Buy with a price target of $132, down from $152. The firm sees near term project delay risks impacting the company’s organic growth.
• Wolfe Research downgraded Valero (VLO) to Underperform from Peer Perform with a $203 price target. Wolfe sees risk that the “elevated” free cash flow expectations implied by Valero’s current valuation cannot be supported.

Top 5 Initiations: 

• DA Davidson initiated coverage of Reddit (RDDT) with a Buy rating and $200 price target, citing a belief that Reddit remains “incredibly under-monetized relative to peers.”
• Freedom Capital initiated coverage of Circle Internet (CRCL) with a Hold rating and $120 price target. The firm sees strong potential for stablecoin adoption, specifically, USDC, but is cautious on Circle shares given uncertainty around several potential outcomes, including the trajectory of interest rates, commercial adoption of stablecoins, regulatory changes, and rising competitive dynamics.
• Scotiabank initiated coverage of Commvault (CVLT) with a Sector Perform rating and $105 price target. The firm views the data protection, backup, and cyber recovery market as “fiercely competitive.” Scotiabank also started coverage of Rubrik (RBRK) with an Outperform rating and $70 price target.
• Berenberg initiated coverage of Palo Alto Networks (PANW) with a Buy rating and $215 price target. The firm views the company as a “rare quality compounder” in cybersecurity.
• Northcoast initiated coverage of Cava Group (CAVA) with a Sell rating and $63 price target. The firm says the stock’s valuation “has gotten ahead” of Cava’s “own potential.”