Netflix, Reddit 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:

• Loop Capital upgraded Charter (CHTR) to Buy from Hold with a price target of $510, up from $430. The firm sees “enhanced growth prospects” from the company’s proposed merger with Cox Communications. Raymond James also upgraded Charter to Market Perform from Underperform without a price target following the Cox Communications buyout.
• UBS upgraded United Airlines (UAL) to Buy from Neutral with a price target of $105, up from $67. Recent tariff relief due to the 90-day agreement with China and framework with the U.K. support a shift in a base case from a downturn in the economy to stability and slow growth, the firm tells investors in a research note. UBS also upgraded Delta Air Lines (DAL) to Buy from Neutral with a price target of $66, up from $46.
• Barclays upgraded Williams-Sonoma (WSM) to Equal Weight from Underweight with a price target of $166, up from $131. The firm is still concerned about the macro environment for big ticket items, but now sees less risk to Williams-Sonoma’s fiscal 2025 earnings and does not expect the company’s fundamentals to meaningfully underperform other discretionary names.
• Wells Fargo upgraded RxSight (RXST) to Overweight from Equal Weight with a price target of $25, up from $17. The firm sees an attractive valuation at the current levels.
• JPMorgan upgraded Cognizant (CTSH) to Overweight from Neutral with a price target of $98, up from $88. The company has made “significant strides in closing the growth gap” versus peers through its focus on execution, large deals and employee retention under CEO Ravi Kumar, the firm tells investors in a research note.

Top 5 Downgrades:

• JPMorgan downgraded Netflix (NFLX) to Neutral from Overweight with a price target of $1,220, up from $1,150. The firm says there is change to its long-term bullish view on Netflix’s streaming leadership position but more near-term, following the significant stock price appreciation and outperformance, the risk/reward on the shares is becoming more balanced.
• Wells Fargo downgraded Reddit (RDDT) to Equal Weight from Overweight with a price target of $115, down from $168. The firm says Reddit’s recent user disruptions are likely more permanent, as search behavior change accelerates with Google (GOOGL) likely to fully integrate full artificial intelligence search capabilities search soon.
• TD Cowen downgraded UnitedHealth (UNH) to Hold from Buy with a price target of $308, down from $520. The v28 risk model is disproportionally impacting UnitedHealth given its outsized risk adjustment factor scores versus the industry, the firm says, adding that accelerating Medicare Advantage activity with potential acceleration in commercial and Medicaid “further complicates the story.”
• Northcoast downgraded GE Aerospace (GE) to Neutral from Buy without a price target. The shares rallied in the last few weeks amid reduced concerns about a global trade war and improved aircraft production visibility, the firm notes, saying it believes the stock’s risk/reward is no longer appealing.
• TD Cowen downgraded Shake Shack (SHAK) to Hold from Buy with an unchanged price target of $105. The shares now trade in excess of the three-year average and the “challenged” restaurant spending backdrop will limit further multiple expansion, particularly in the “crowded burger category where the concept lacks category leadership,” the firm tells investors in a research note.

Top 5 Initiations:

• BofA reinstated coverage of SBA Communications (SBAC) with a Buy rating and $260 price target while reinstating coverage on the Communications Infrastructure sector. Tower multiples, investor sentiment and estimates have all troughed, the firm argues. BofA also reinstated coverage of Equinix (EQIX), Crown Castle (CCI), Digital Realty (DLR), and American Tower (AMT) with Buy ratings.
• BofA initiated coverage of Matador (MTDR) with a Buy rating and $56 price target. The mid-cap oil-focused exploration and production company has diverse growth options that set it apart from other E&Ps including developing its low breakeven E&P assets, share repurchases, expanding its midstream footprint and inorganic growth, says the firm, which also cites the company’s experienced management team.
• Seaport Research initiated coverage of Starz Entertainment (STRZ) with a Buy rating and $30 price target. Seaport believes the longer-term valuations for Starz could be “much higher,” up to $46 and conceivably even $56 per share, once sentiment in the sector improves and differentiates among business models.
• Northland initiated coverage of Hallador Energy (HNRG) with an Outperform rating and $23 price target. Hallador is a vertically integrated independent power producer that acquired a 1 GW power plant in 2022 and is negotiating a long-term contract for the majority of its capacity to a data center, potentially in the near-term, the firm tells investors.
• Craig-Hallum initiated coverage of Super Group (SGHC) with a Buy rating and $12 price target. The firm notes the company has right sized its operations in recent years, adapted to regulatory changes in Canada, and exited competitive and uneconomic markets.