Lululemon downgraded, T-Mobile 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:

• Wells Fargo upgraded T-Mobile (TMUS) to Overweight from Equal Weight with a price target of $260, up from $250. The firm is swapping top carrier pick to T-Mobile for structurally higher 3-year free cash flow growth, continued network leadership and share gains, and capital allocation flexibility bolstered by buybacks.
• Seaport Research upgraded TKO Group (TKO) to Buy from Neutral with a $214 price target. The firm is turning more constructive after the shares pulled back in recent weeks.
• JPMorgan upgraded PPG (PPG) to Overweight from Neutral with an unchanged price target of $112. The firm believes PPG’s market value has decreased more than its business fundamentals have weakened.
• JPMorgan upgraded Las Vegas Sands (LVS) to Overweight from Neutral with a price target of $60, up from $56. The firm cites the recent pullback in the shares and its increasingly positive view of Singapore for the upgrade.
• BofA upgraded Sea Limited (SE) to Buy from Neutral with a price target of $215, up from $206. The company is seeing strong momentum across its businesses, creating a “disconnect” with the current share price, the firm tells investors in a research note.

Top 5 Downgrades:

• Bernstein downgraded Lululemon (LULU) to Market Perform from Outperform with a price target of $190, down from $220. While the company’s promotion with American Express is driving a near-term boost, its underlying U.S. trends are worsening and its growth seems contingent on a newness strategy that is six months away and unproven, the firm tells investors in a research note.
• TD Cowen downgraded Molina Healthcare (MOH) to Hold from Buy with an unchanged price target of $203. The firm sees potential for several years of medical loss ratio pressure as states face budget deficits and lingering effects of redeterminations.
• Deutsche Bank downgraded Fiserv (FI) to Hold from Buy with a price target of $122, down from $175, ahead of the company’s Q3 earnings report. Fiserv is likely to lower its 2025 outlook amid deteriorating fundamentals, increasing competition, and a “looming” reinvestment cycle, the firm tells investors in a research note.
• Rothschild & Co Redburn downgraded Verisk Analytics (VRSK) to Sell from Neutral with a $220 price target. The firm says the company’s downside risks are not priced into the shares.
• Goldman Sachs downgraded Cricut (CRCT) to Sell from Neutral with a price target of $4.75, down from $5.50. The firm sees limited visibility into the company returning to sustainable 5%-plus revenue growth beyond 2026 despite its investments to reverse user engagement trends. The

Top 5 Initiations:

• Freedom Capital initiated coverage of Toast (TOST) with a Buy rating and $45 price target. The company has made meaningful inroads penetrating the U.S. restaurant vertical with its purpose-built modern, cloud-based offering, and the firm sees multiple growth catalysts on the horizon, including incremental share gains remaining in core U.S. SMB, significant total addressable market expansion opportunity from newer business segments – enterprise, food and beverage retail – and international, which should drive sustained growth in key metrics, the firm tells investors in a research note.
• Truist initiated coverage of Gartner (IT) with a Buy rating and $300 price target. The shares are trading at an “unusual” 40% discount to its historical average multiple after three years of slowing growth, the firm tells investors in a research note.
• Morgan Stanley initiated coverage of Equinix (EQIX) with an Overweight rating and $950 price target, which offers 16% upside. The firm sees both data center operators benefiting from “robust industry growth tailwinds.”
• Baird initiated coverage of Rocket Lab (RKLB) with an Outperform rating and $83 price target. The company’s position as a reliable space launch provider is “firmly established” through its 94% mission success rate, the firm tells investors.
• Morgan Stanley initiated coverage of Digital Realty (DLR) with an Equal Weight rating and $195 price target, which implies 11% upside. The firm sees the data center operators benefiting from “robust industry growth tailwinds.”