Reddit initiated, Roku 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:

• Redburn Atlantic upgraded Roku (ROKU) to Buy from Neutral with a $100 price target. The firm says the company has “defensive attributes” with $2.2B of cash, which should rise to $3.7B by 2027, and with 40% of costs variable. 
• Citi upgraded Dollar Tree (DLTR) to Buy from Neutral with a price target of $103, up from $76. With 50% of the company’s product subject to significantly higher tariffs, the market reaction “was extremely and unsurprisingly negative,” but Citi believes the higher-tariff-across-the-board environment is going to be a positive for Dollar Tree. 
• Citi upgraded Dollar General (DG) to Neutral from Sell with a price target of $101, up from $69. In the near-term, Dollar General does not have the same tariff risk as most others in retail, and may benefit from consumers trading down, the firm says.
• JPMorgan upgraded Five Below (FIVE) to Neutral from Underweight with a $57 price target. The firm cites valuation for the upgrade with the shares down 45% since September 18. 
• Morgan Stanley upgraded Bank of America (BAC) to Overweight from Equal Weight with a price target of $47, down from $56. The firm cites valuation for the upgrade of Bank of America, noting the stock has been the worst performing money center bank year-to-date. 

Top 5 Downgrades:

• Baird downgraded Starbucks (SBUX) to Neutral from Outperform with a price target of $85, down from $114. With the probabilities of an economic slowdown seemingly rising following the “shock” of last week’s tariff announcement, Baird lowered estimates and price targets for the restaurants. 
• Raymond James downgraded Pinterest (PINS) to Market Perform from Outperform without a price target. The firm is incrementally cautious on Pinterest expectations, despite the firm’s overall favorite stance on the management team and shopping strategy.
• UBS downgraded Delta Air Lines (DAL) to Neutral from Buy with a price target of $42, down from $77. The firm tells investors that it does not expect the company to be immune to the significant cyclical pressure that typically occurs during an economic downturn, and believes the current backdrop of a weaker economic outlook and the sharp move up in tariffs appears likely to cause deterioration in both international and premium segments which is a significant risk for the name. UBS also downgraded United Airlines (UAL) and Alaska Air (ALK) to Neutral from Buy.  
• UBS downgraded Caterpillar (CAT) to Sell from Neutral with a price target of $243, down from $385. Despite the pullbacks in Machinery stocks to date, the firm thinks there is more earnings downside for the companies related to macroeconomic headwinds and that is not yet priced in. The firm also downgraded Terex (TEX), Cummins (CMI), Paccar (PCAR), United Rentals (URI) to Sell and Vulcan Materials (VMC) and Martin Marietta (MLM) to Neutral. 
• Bernstein downgraded General Motors (GM) to Underperform from Market Perform with a price target of $35, down from $50. As tariff pressures intensify and consumer sentiment weakens, GM shares will remain under pressure, contends Bernstein.

Top 5 Initiations:

• Truist initiated coverage of Reddit (RDDT) with a Buy rating and $150 price target. The company is one of the fastest growing social media platforms and one that’s aggressively gaining share of the digital ad market while also showing material margin leverage, driving profitability with more room to grow given lower monetization relative to peers, the firm tells investors in a research note. 
• Jefferies initiated coverage of Axsome Therapeutics (AXSM) with a Buy rating and $200 price target. The firm thinks Auvelity for depression could generate $1.5B-$2B in peak sales, which on a three-times multiple implies a $4.5B-$6.0B valuation. 
• RBC Capital initiated coverage of BeiGene (ONC) with an Outperform rating and $312 price target. RBC sees a path to robust revenue growth driven by Brukinsa’s market dominance and high-value follow-on assets in the hematology-oncology space, the firm tells investors in a research note. 
• H.C. Wainwright initiated coverage of Ionis Pharmaceuticals (IONS) with a Buy rating and $45 price target. The firm says the company has a pipeline of successful antisense oligonucleotide therapies. It sees an opportunity to own Ionis ahead of 2025 catalysts.
• Morgan Stanley initiated coverage of Semtech (SMTC) with an Equal Weight rating and $30 price target. The firm is “positively biased” on the shares, but with current tariff uncertainties in consumer markets, Morgan Stanley is on the sidelines.