Meta downgraded, Qualcomm 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:

• Summit Insights upgraded Qualcomm (QCOM) to Buy from Hold post the Q1 report. The firm believes the negatives are priced into the shares as the company pivots towards AI.
• JPMorgan upgraded Teradyne (TER) to Overweight from Neutral with an unchanged price target of $400. The firm cites valuation for the upgrade following the 20% post-earnings selloff.
• BofA upgraded AbbVie (ABBV) to Buy from Neutral with a price target of $234, up from $226. The firm believes concerns around competitive erosion to the key immunology segment are “overdone” as it argues that forward indicators for Skyrizi remain strong and new competitors appear “category expanding.”
• Raymond James double upgraded Equinix (EQIX) to Strong Buy from Market Perform with a $1,250 price target following the Q1 report. The firm believes Equinix is “firmly back in the driver seat” after last year’s adjustments and is benefiting from AI-based demand.
• Deutsche Bank upgraded SiteOne Landscape (SITE) to Buy from Hold with an unchanged price target of $160. The firm views the selloff in the shares post the Q1 report as “overdone.”

Top 5 Downgrades:

• JPMorgan downgraded Meta Platforms (META) to Neutral from Overweight with a price target of $725, down from $825, following the Q1 report. JPMorgan is “encouraged” by Meta’s 33% year-over-year revenue growth in Q1, but says the company’s increased infrastructure spending and lack of visibility into its AI product pipeline warrant a downgrade.
• B. Riley downgraded Etsy (ETSY) to Neutral from Buy with a price target of $75, up from $70. The firm sees a balanced risk/reward following the post-earnings rally.
• Goldman Sachs downgraded Wingstop (WING) to Neutral from Buy with a price target of $190, down from $290, following the Q1 report. The firm says the brand is facing “more severe” macroeconomic and competitive headwinds than expected.
• Goldman Sachs downgraded GE HealthCare (GEHC) to Neutral from Buy with a price target of $65, down from $81, following the Q1 report. Goldman believes GE Healthcare’s macro exposure will overshadow the improving parts of its business, like pipeline development and new product launch execution.
• BofA downgraded Reliance (RS) to Underperform from Neutral with a price target of $365, up from $355. While near-term fundamentals remain supportive, equity upside is “now more valuation-constrained,” the firm tells investors.

Top 5 Initiations:

• Oppenheimer initiated coverage of Palantir (PLTR) with an Outperform rating and $200 price target. While Palantir’s high valuation remains a concern for the investment community, Oppenheimer sees it as justified as Palantir is rapidly becoming the leading platform for AI application deployment across the Government and Commercial sectors.
• Clear Street initiated coverage of AeroVironment (AVAV) with a Buy rating and $293 price target. The firm sees a revenue inflection driven by “faster-than-expected BlueHalo commercialization.”
• Clear Street initiated coverage of Kratos Defense (KTOS) with a Buy rating and $82 price target. The firm notes that its positive views are supported by Kratos evolving into a scale defense growth platform.
• Mizuho initiated coverage of Sutro Biopharma (STRO) with an Outperform rating and $50 price target. The firm believes the company’s antibody-drug conjugate pipeline is positioned to reproduce a proven development framework.
• Roth Capital initiated coverage of Mistras (MG) with a Buy rating and $22 price target. The company has “significantly improved” its operating efficiency, which is driving margin expansion, profitability and conversion to free cash flow, the firm tells investors in a research note.