Roblox downgraded, Hershey 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:

• TD Cowen upgraded Roblox (RBLX) to Hold from Sell with a price target of $49, down from $54. The company cut its “overly ambitious” fiscal 2026 guidance, the firm tells investors in a research note, adding that it believes the stock’s current valuation now better reflects the “facts on the ground” for Roblox.
• TD Cowen upgraded Hershey (HSY) to Buy from Hold with an unchanged $210 price target following the Q1 report. The firm has increased confidence that Hershey will raise its 2026 guidance and return to volume growth in 2027.
• Morgan Stanley upgraded Caterpillar (CAT) to Equal Weight from Underweight with a price target of $915, up from $430. The company’s execution amid macro headwinds and its record backlog continue to support attractive longer-term growth, the firm tells investors in a research note.
• Morgan Stanley double upgraded Paramount Skydance (PSKY) to Overweight from Underweight with a price target of $14, up from $11, as analyst Sean Diffley assumed coverage of several media and entertainment stocks. Pessimism “presents an opportunity” as the Warner (WBD) deal is “transformative” and AI can “turbocharge” legacy assets, says the firm, which sees a “clear synergy and de-levering path.”
• Morgan Stanley upgraded TKO Group (TKO) to Overweight from Equal Weight with a price target of $225, up from $215. TKO’s big UFC and WWE media rights deals provide certainty, while partnerships, site fees and Zuffa Boxing are “inexpensive call options,” the firm tells investors.

Top 5 Downgrades:

• BTIG downgraded Roblox (RBLX) to Neutral from Buy with no price target following a “surprisingly weak” Q1 report and “sharp” 2026 guidance reduction. BofA and Raymond James also downgraded Roblox to Neutral-equivalent ratings following quarterly results.
• Morgan Stanley downgraded Elf Beauty (ELF) to Equal Weight from Overweight with a price target of $67, down from $80. The company’s market share losses in its core cosmetics business are concerning and “poised to worsen” as the summer of 2025 pricing cycles, the firm says.
• Wedbush downgraded Fannie Mae (FNMA) to Neutral from Outperform with an unchanged price target of $8. The company’s Q1 results were modestly below expectations with the headline being expense discipline, the firm tells investors in a research note.
• Citi downgraded Alaska Air (ALK) to Sell from Buy with a price target of $32, down from $51. The airline is “asymmetrically and unfavorably exposed” to higher fuel prices, the firm tells investors in a research note.
• Jefferies downgraded MGM Resorts (MGM) to Hold from Buy with a price target of $44, down from $50, after resuming coverage of the name. In the near-term, Las Vegas leisure volatility and increasingly tougher Macau compares “should mute” the company’s growth prospects, the firm tells investors in a research note.

Top 5 Initiations:

• Evercore ISI resumed coverage of FuboTV (FUBO) with an Outperform rating and $18 price target. Fubo has emerged from the deal with Disney’s (DIS) Hulu Live as a “scaled domestic virtual Pay TV distributor with a meaningfully improved programming cost curve,” the firm tells investors.
• Oppenheimer initiated coverage of Dutch Bros (BROS) with an Outperform rating and $72 price target. The firm views Dutch as a “unique opportunity” in the restaurant group.
• Wolfe Research initiated coverage of Commvault (CVLT) with a Peer Perform rating and no price target. While Commvault was able to deliver accelerating topline growth and mid-20% to 30% Subscription ARR growth over the past three years, deceleration showed up last year, notes the firm, which sees a fair value range of $80 to $120 for shares.
• Wolfe Research initiated coverage of Rubrik (RBRK) with an Outperform rating and $70 price target. The firm is confident in Rubrik’s ability to maintain 30%-plus Subscription ARR growth this year and durable high-20%-plus growth in out years.
• Needham initiated coverage of Littelfuse (LFUS) with a Buy rating and $450 price target. The firm believes the company is entering a period of accelerating growth.