Microsoft downgraded, Reddit 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:

• Seaport Research upgraded Reddit (RDDT) to Buy from Neutral with a $165 price target. Reddit reported strong Q1 revenue and EBITDA, but slowing Q2 user growth driven by Google (GOOGL) search changes resulted in shares selling off, the firm notes, adding that while Google’s changes are a near-term headwind, the firm continues to expect “solid” long-term user growth and meaningful revenue and monetization growth and would be buyers on the pullback.
• HSBC upgraded Twilio (TWLO) to Hold from Reduce with a price target of $99, up from $77. The company reported solid Q1 results and raised its 2025 guidance, the firm tells investors in a research note.
• UBS upgraded GE HealthCare (GEHC) to Neutral from Sell with a price target of $73, down from $74. A “reasonable worst-case outlook is now baked into guidance and the share price,” meaning UBS no longer sees material downside.
• JPMorgan upgraded Wendy’s (WEN) to Overweight from Neutral with a price target of $15, down from $17. The current share price provides a “value-oriented opportunity,” the firm tells investors in a research note.
• Mizuho upgraded Bloom Energy (BE) to Outperform from Neutral with a price target of $26, down from $28. The firm sees “asymmetric risk/reward upside” for Bloom from marginal orders from utilities or other large load customers.

Top 5 Downgrades:

• Phillip Securities downgraded Microsoft (MSFT) to Accumulate from Buy with an unchanged price target of $480. The firm cites the recent price performance for the downgrade, but notes it still believes Microsoft is well positioned to benefit from the rising demand for large artificial intelligence models,” boosting Azure’s appeal and driving incremental revenue.”
• Phillip Securities downgraded Spotify (SPOT) to Reduce from Neutral with an unchanged price target of $600. The firm cites the recent share price strength for the downgrade as Phillip does not see much upside due to Spotify’s “full valuations.”
• Macquarie downgraded Block (XYZ) to Neutral from Outperform with a $50 price target following the Q1 report. The firm sees scope for further softness in the consumer potentially weighing on the company.
• Cantor Fitzgerald downgraded Onto Innovation (ONTO) to Neutral from Overweight with a price target of $135, down from $250. While the fundamental backdrop for Onto’s markets is largely unchanged versus three months ago, numbers in the upcoming earnings print may need to be “derisked a touch,” based on increasing competition, the firm says.
• Wells Fargo downgraded Huntsman (HUN) to Equal Weight from Overweight with a price target of $13, down from $17. The firm reduced the company’s estimates again to reflect low visibility amid tariff headwinds and weakness across the construction, auto, consumer discretionary, and industrial markets.

Top 5 Initiations:

• Loop Capital initiated coverage of Okta (OKTA) with a Buy rating and $140 price target. The identity security market is on the verge of a mass market adoption phase driven by the need to secure generative artificial intelligence deployments, which require a modernized, holistic approach to securing the identities of workforce, customers, and non-human entities and managing their access to data and services, the firm tells investors in a research note.
• MoffettNathanson initiated coverage of CoreWeave (CRWV) with a Neutral rating and $43 price target. The bull case for CoreWeave “isn’t complicated,” but there are “substantial risks to consider” given that as GPU supply and demand eventually move into balance, large customers, most notably Microsoft (MSFT), may no longer need to lean as heavily on outsourced compute, the firm says.
• William Blair initiated coverage of Roper Technologies (ROP) with an Outperform rating. The firm says the company has doubled down on “customer intimacy” in support of sustained organic growth and compounding free cash flow.
• Oppenheimer initiated coverage of Iridium (IRDM) with an Outperform rating and $34 price target. The firm says Iridium’s constellation’s network structure and “unique” global L-band spectrum occupy a “mission-critical niche that is unlikely to be replicated.”
• Jefferies initiated coverage of EHang (EH) with a Buy rating and $30.40 price target. The firm says the low-altitude economy is “taking off” in China, with electric vertical take-off and landing as an integral part in urban air mobility.