Qorvo downgraded, Ulta Beauty 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:

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• Jefferies upgraded Ulta Beauty (ULTA) to Buy from Hold with a price target of $700, up from $635. The firm has improved confidence in the company’s revenue durability citing a “broadening beauty backdrop and renewed makeup engagement.”
• Barclays upgraded Okta (OKTA) to Overweight from Equal Weight with a price target of $90, up from $85. The firm believes Okta’s standing is “improving steadily as a vendor expected to see increased spending.”
• Wells Fargo upgraded Biogen (BIIB) to Overweight from Equal Weight with a price target of $250, up from $200. The firm believes the company’s new revenue streams from its immunology and kidney pipelines reduce its reliance on Alzheimer’s.
• Stifel upgraded Plexus (PLXS) to Buy from Hold with a price target of $250, up from $200. The firm believes Plexus has entered a “multi-sector revenue inflection” across aerospace and defense, healthcare, and semicap, supported by its engineering-led model that “creates stickier, higher-margin program wins.”
• B. Riley upgraded Axcelis (ACLS) to Buy from Neutral with a price target of $150, up from $91. The firm expects better results for Q1 vs. consensus and Q2 guidance at consensus amid a Memory tick-up and Mature Foundry digests as China stabilizes.

Top 5 Downgrades:

• Mizuho downgraded Qorvo (QRVO) to Underperform from Neutral with a price target of $66, down from $70. The firm cites its supply chain checks and handset industry call for the downgrade. Mizuho also downgraded Skyworks (SWKS) to Underperform from Neutral with a price target of $46, down from $60.
• Wells Fargo downgraded NXP Semiconductors (NXPI) to Equal Weight from Overweight with a price target of $235, down from $265. Wells cites a weaking auto backdrop for the downgrade of NXP.
• Barclays downgraded Avis Budget (CAR) to Underweight from Equal Weight with a price target of $150, up from $95. The firm attributes the recent rally to a “sharp supply/demand mismatch,” with two holders accounting for 71% of outright ownership of the company, and over 100% of economic interest given outstanding swaps.
• BofA downgraded Mohawk Industries (MHK) to Neutral from Buy with a price target of $122, down from $149, given continued weak demand for flooring in the U.S., incremental input cost inflation and Europe macro headwinds.
• Truist downgraded Doximity (DOCS) to Hold from Buy with a price target of $29, down from $37. The firm has a taken a more cautious outlook on Doximity, saying its revenue growth visibility has softened and structural risks are mounting.

Top 5 Initiations:

• Mizuho initiated coverage of Whirlpool (WHR) with a Neutral rating and $55 price target. The company faces near-term margin pressure from tariffs, lower shipments, consumer softness, and potential for another dividend cut amid elevated earnings risk, but the firm believes Whirlpool’s restructuring plan and $300M “multi-year facelift” in laundry creates an opportunity to improve its operational performance over time.
• Guggenheim initiated coverage of Serve Robotics (SERV) with a Buy rating and $13 price target. Serve is the only public, pure-play U.S. autonomous robotic delivery company today and maintains the largest robot fleet, says the firm, which views Serve as well positioned to benefit from secular tailwinds.
• TD Cowen initiated coverage of Voya Financial (VOYA) with a Buy rating and $100 price target. The firm says the stock’s valuation “looks disconnected” from the company’s fundamentals.
• Northland initiated coverage of Quantum Computing (QUBT) with an Outperform rating and $20 price target. Quantum computing’s market potential could be between $100B and $250B, estimates the firm, which believes technology execution risk is “far less on an industry level.” Northland also started Xanadu Quantum (XNDU) and IonQ (IONQ) with Outperform ratings, and Rigetti Computing (RGTI) and D-Wave Quantum (QBTS) with Market Perform ratings.
• Wedbush initiated coverage of USA Rare Earth (USAR) with an Outperform rating and $29 price target. With China’s export controls having made the cost of supply chain dependence impossible to ignore, the window for domestic producers to capture long-term customer relationships across every segment of the rare earth value chain has never been more urgent, Wedbush argues.