Marvell downgraded, Dollar Tree 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 Upgrades:

• Telsey Advisory upgraded Dollar Tree (DLTR) to Outperform from Market Perform with a price target of $130, up from $100. The firm is “encouraged” by the early results from the company’s introduction of multi-price point products, which include $3, $4, and $5 food products.
• Summit Insights upgraded Ambarella (AMBA) to Buy from Hold following the fiscal Q2 beat. The firm says the emergence of autonomous robotics in addition to the “renewed popularity” for portable 360-degree cameras can meaningfully expand the company’s total addressable market in its internet of things business.
• BofA upgraded Southwest Gas (SWX) to Buy from Neutral with a price target of $84, up from $76. Southwest selling its interest in Centuri Holdings (CTRI) and recycling capital into its core utility will result in higher earnings and rate base growth, as well as an improved valuation, the firm tells investors.

Top Downgrades:

• BofA downgraded Marvell (MRVL) to Neutral from Buy with a price target of $78, down from $90. The firm did not hear the same level of confidence and visibility about Marvell’s AI growth prospects in the near-to-medium term and senses incrementally higher uncertainty around both the timing of Marvell’s new Microsoft (MSFT) Maia project and share in next-gen 3nm Amazon (AMZN) project.
• Citi downgraded Aspen Insurance (AHL) to Neutral from Buy with a price target of $37.50, down from $43, after the company agreed to be acquired by Sompo Holdings (SMPNY) for $37.50 per share, or $3.5B in cash.
• Texas Capital downgraded Vital Energy (VTLE) to Hold from Buy with an $18 price target, down from $52, after the company entered into an agreement to be acquired by Crescent Energy (CRGY) in an all-stock transaction valued at $3.1B.
• H.C. Wainwright downgraded Outlook Therapeutics (OTLK) with a price target of $1, down from $3. The firm is “disappointed “that the FDA issued a complete response letter for ONS-5010 in wet age-related macular degeneration. Guggenheim also downgraded Outlook Therapeutics to Neutral from Buy and removed the firm’s price target after the company received another complete response letter from the FDA regarding their BLA resubmission for ONS-5010 for the treatment of wetAMD.
• H.C. Wainwright downgraded scPharmaceuticals (SCPH) to Neutral from Buy with a price target of $5.35, down from $18, after the company agreed to be acquired by MannKind (MNKD) for $5.35 per share in cash plus one non-tradable contingent value right per share to receive certain milestone payments of up to an aggregate of $1.00.

Top Initiations:

• Raymond James initiated coverage of ServiceTitan (TTAN) with a Market Perform rating and no price target. The company has “all the makings of an elite vertical software company,” but with shares up 52% since the IPO and trading at a valuation above the vertical software group, the firm advises awaiting a more attractive entry point.
• Citi initiated coverage of Lumentum (LITE) with a Buy rating and $165 price target. The firm continues to see further upside despite shares being up over 50% year-to-date.
• Oppenheimer resumed coverage of Centessa (CNTA) with an Outperform rating and $40 price target. The firm cites its conviction for lead asset ORX750 to represent best-in-class potential among orexin-2 receptor agonists, with near-term Phase 2a CRYSTAL-1 data in idiopathic hypersomnia and narcolepsy type-1 and -2 expected this year – likely Q4 2025, given ct.gov information.
• Alliance Global Partners initiated coverage of BrilliA (BRIA) with a Buy rating and $5 price target, citing its view that the company is positioned to continue as a valued partner providing full-service product solutions for major apparel company partners.
• UBS initiated coverage of Karooooo (KARO) with a Buy rating and $60 price target. The firm sees the company’s above-average high-teens growth rate creating an attractive risk/reward, particularly for emerging market investors.