Micron upgraded, PayPal downgraded: 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:

• BofA upgraded Micron (MU) to Buy from Neutral with a price target of $300, up from $250. Though there may be some volatility in AI demand, HBM is sold out again throughout calendar 2026 and customers are engaged in multi-year agreements, positioning Micron for a potentially more sustainable upcycle than in prior cycles, the firm tells investors.
• Baird upgraded Rivian (RIVN) to Outperform from Neutral with a price target of $25, up from $14. The firm says 2026 is the year of the R2 launch.
• Jefferies upgraded GE Vernova (GEV) to Buy from Hold with a price target of $815, up from $736. Shares are down since the company’s analyst day, though the firm is more positive on the outlook for Power given gas pricing and services visibility and the outlook for electrification as well.
• BMO Capital upgraded Merck (MRK) to Outperform from Market Perform with a price target of $130, up from $82. The firm says the company is assembling a portfolio to grow through the Keytruda loss of exclusivity.
• JPMorgan upgraded Shake Shack (SHAK) to Neutral from Underweight with a price target of $90, down from $95, after speaking with management. The firm cites valuation for the upgrade following the stock’s recent pullback.

Top 5 Downgrades:

• Morgan Stanley downgraded PayPal (PYPL) to Underweight from Equal Weight with a price target of $51, down from $74. The firm says the improvements to the company’s branded checkout integrations will be “slow and complex.”
• RBC Capital downgraded Lennar (LEN) to Underperform from Sector Perform with a price target of $95, down from $106. The firm cites the company’s “weak” Q4 results and Q1 guidance, while noting that the expectations around a recovery in margin later this year still present risk to FY26 earnings. Evercore ISI and BofA also downgraded Lennar to Sell-equivalent ratings.
• William Blair downgraded Progressive (PGR) and Allstate (ALL) to Market Perform from Outperform without price targets. The firm cut its near-term view on the auto insurance sector.
• Morgan Stanley downgraded Cinemark (CNK) to Equal Weight from Overweight with a price target of $28, down from $35, citing a lowered box office forecast and a 10% reduction in FY26 and FY27 adjusted EBITDA estimates.
• Maxim downgraded Two Harbors (TWO) to Hold from Buy after UWM Holdings (UWMC) announced a definitive merger agreement to acquire the company in an all-stock transaction valued at $1.3B in equity value.

Top 5 Initiations:

• Wells Fargo initiated coverage of Delta Air Lines (DAL) with an Overweight rating and $87 price target. The firm believes improving market dynamics and the company’s better through-cycle earnings power driven by its premium and loyalty are catalysts for a re-rating of the shares.
• Wells Fargo initiated coverage of United Airlines (UAL) with an Overweight rating and $145 price target. The firm says United offers an earnings growth story amid improving industry dynamics and a catch-up loyalty opportunity.
• Wells Fargo initiated coverage of American Airlines (AAL) with an Equal Weight rating and $17 price target. The company has a new co-branded card agreement and improving main cabin economics, which the firm sees as positive, but its “still elevated” debt and the need for premium catch up are offsets, Wells argues.
• Wells Fargo initiated coverage of Southwest (LUV) with an Equal Weight rating and $45 price target. The company is undergoing a meaningful transformation, but competitive pressures and execution are headwinds for shares, the firm tells investors in a research note.
• Oppenheimer initiated coverage of Angel Studios (ANGX) with an Outperform rating and $18 price target. The firm’s estimates imply Angel Guild reaches 3.7M subscribers by 2027, 1.0% of Netflix (NFLX) global subscribers or 3.8% of Netflix domestic subscribers, suggesting a significant runway for growth.