Roblox downgraded, Lululemon 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:

• Jefferies upgraded Lululemon (LULU) to Hold from Underperform with a price target of $170, up from $120. The pending CEO departure is a “big positive,” the firm tells investors in a research note.
• UBS upgraded American Airlines (AAL) to Buy from Neutral with a price target of $20, up from $14, after transfer in analyst coverage. The market is not fully appreciating American’s opportunity to “meaningfully expand” profits over the next few years as its corporate revenues recover, the firm tells investors in a research note.
• JPMorgan upgraded Citi (C) to Overweight from Neutral with a price target of $124, up from $107. The firm says Citi will benefit more than peers from a solid economy and strong markets-related activity in 2026.
• Guggenheim upgraded Bristol Myers (BMY) to Buy from Neutral with a $62 price target ahead of 2026, which the firm believes “offers a much more compelling value-oriented and pipeline-driven risk/reward.”
• Deutsche Bank upgraded Allegiant Travel (ALGT) to Buy from Hold with a $105 price target. The firm sees the combination of a “fairly balanced” domestic supply backdrop, a low-fare sector “highly motivated” to generate positive returns, and the solid macro environment offering a “healthy set up” for airlines in 2026, especially for those exposed to the U.S. market.

Top 5 Downgrades:

• JPMorgan downgraded Roblox (RBLX) to Neutral from Overweight with a price target of $100, down from $145. JPMorgan thinks the shares “could take a breather” in 2026 due to engagement headwinds, bookings growth slowing, and margins compressing.
• Baird downgraded PayPal (PYPL) to Neutral from Outperform with a price target of $66, down from $83. The firm believes the combination of “uneven” transaction volumes in Q4 and another investment cycle coming in 2026, along with uncertain timing around broader platform improvements mean that a “clearing event” for the stock is less likely near term.
• Stifel downgraded RH (RH) to Hold from Buy with a price target of $165, down from $320. The company reduced its fiscal 2025 revenue and EBITDA guidance for the second time this year with results implying slowing demand through the year, the firm says.
• Northland downgraded Ciena (CIEN) to Market Perform from Outperform with a $190 price target. At the current valuation, and with Q1 capacity limited as the company termed itself “sold out,” the firm sees FY26 guidance and upside drivers like new scale wins “fully factored” into the shares.
• KeyBanc downgraded Veeva (VEEV) to Sector Weight from Overweight. A recent round of channel checks has indicated that large pharma clients in the middle of software evaluations are leaning towards Salesforce’s (CRM) offering, suggesting more losses than Veeva has outlined, the firm tells investors in a research note.

Top 5 Initiations:

• Citi initiated coverage of Boeing (BA) with a Buy rating and $265 price target. The firm believes Boeing is an “unusually attractive mega-cap turnaround” story. Citi also started coverage of GE Aerospace (GE), L3Harris Technologies (LHX), RTX (RTX) and Northrop Grumman (NOC) with Buy ratings, and Lockheed Martin (LMT), General Dynamics (GD) and Booz Allen (BAH) with Neutral ratings.
• Jefferies initiated coverage of Moderna (MRNA) with a Hold rating and $30 price target. For 2026, the company’s COVID and RSV sales should grow ex-U.S. with operating expense also falling about 8%, but while this is directionally helpful, Moderna will need more to meet guide, the firm tells investors in a research note.
• UBS initiated coverage of AppFolio (APPF) with a Buy rating and $285 price target. The firm’s channel checks show no hints of a spending slowdown or incremental competitive pressure for the company.
• TD Cowen initiated coverage of Tyler Technologies (TYL) with a Buy rating and $650 price target. As the “leading vendor in the public sector market,” a large, stable market, the firm sees durable 20% SaaS growth, led by cloud migrations that are expected to accelerate in 2027-2028.
• Jefferies initiated coverage of Badger Meter (BMI) with a Buy rating and $220 price target. The recent pullback provides “an attractive entry point for the name that compounds HSD organic growth,” the firm added.