Spotify upgraded, Alibaba initiated: 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.

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Top 5 Upgrades: 

• Rosenblatt upgraded Spotify (SPOT) to Buy from Neutral with a price target of $500, down from $670. The firm upgrades the shares following the post-earnings selloff.
• Oppenheimer upgraded T-Mobile (TMUS) to Outperform from Perform with a $260 price target. The company reported an in-line quarter and modestly raised guidance, the firm tells investors in a research note.
• BofA upgraded Molina Healthcare (MOH) to Buy from Underperform with a price target of $250, up from $152, due to Medicaid margins likely bottoming in 2026. The firm also double upgraded Centene (CNC) to Buy from Underperform and upgraded Elevance Health (ELV) to Buy from Neutral.
• BofA upgraded Victoria’s Secret (VSCO) to Buy from Neutral with a price target of $68, up from $58. The firm, which thinks the new management team is taking the right steps to turn the brand and create sustainable sales growth, is raising its FY26 and FY27 EPS estimates by 3% and 14%, respectively, to reflect an improved sales and margin trajectory.
• TD Securities upgraded Celestica (CLS) to Buy from Hold with a price target of $430, up from $350. Yesterday’s post-earnings selloff provides an “opportunistic entry point,” the firm tells investors in a research note.

Top 5 Downgrades:

• UBS downgraded MercadoLibre (MELI) to Neutral from Buy with a price target of $2,050, down from $2,700. UBS believes MercadoLibre’s margins will remain under pressure and only start to recover from 2027 onward.
• Deutsche Bank downgraded Sysco (SYY) to Hold from Buy with a price target of $84, down from $90. The shares could be range bound in the near-term given the overhang from the pending Restaurant Depot acquisition, the firm tells investors in a research note.
• Raymond James downgraded Universal Health (UHS) to Market Perform from Outperform without a price target. The firm has concerns about the company’s ability EBITDA guidance throughout 2026.
• William Blair downgraded Tenable (TENB) to Market Perform from Outperform without a price target. In the current environment, software companies need to show growth acceleration “in order to escape the penalty box” associated with AI disrupting software-as-a-service, the firm tells investors in a research note. William Blair also downgraded Qualys (QLYS) and Rapid7 (RPD) to Market Perform from Outperform without price targets.
• KeyBanc downgraded Purple Innovation (PRPL) to Sector Weight from Overweight with no price target. While the firm says it remains “positive on the company, the products and upside potential for shares in an industry recovery,” it cites ongoing industry softness and leverage for its downgrade.

Top 5 Initiations: 

• BNP Paribas initiated coverage of Alibaba (BABA) with an Outperform rating and $209 price target, which offers 58% upside. The company’s cloud revenue growth will accelerate on better AI capex monetization, the firm tells investors in a research note.
• JPMorgan resumed coverage of Charter (CHTR) with a Neutral rating and $215 price target, down from $400, following a period of restriction. The stock’s current valuation is “undemanding,” but the company’s Q1 results underscore the competitive intensity and challenges facing cable operators as they defend broadband share, the firm tells investors in a research note.
• Loop Capital initiated coverage of Legence (LGN) with a Buy rating and $96 price target. Legence is among the most attractive growth stories in Loop’s coverage universe, the firm tells investors in a research note.
• Guggenheim initiated coverage of Corbus Pharmaceuticals (CRBP) with a Buy rating and $45 price target. The firm believes Corbus has a viable development path for both of its lead asset CRB-701 target indications, with a “particularly compelling opportunity” in a subset of head and neck squamous cell carcinoma arising from the oropharynx.
• Morgan Stanley resumed coverage of Klaviyo (KVYO) with an Overweight rating and $34 price target. Intra-quarter data points – both channel conversations and CIO survey indicators – reflected durability and “signs of cautious optimism” within application SaaS fundamentals, says the firm, which prefers companies such as Klaviyo which are seen as best positioned to deliver meaningful estimate revisions against “undemanding valuation.”