Analysts are intrested in these 5 stocks: ( (BKNG) ), ( (SMR) ), ( (SPOT) ), ( (FSLY) ) and ( (MELI) ). Here is a breakdown of their recent ratings and the rationale behind them.
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New trading tool for SMR bulls/bearsBooking Holdings is back in the spotlight after Robert Mollins upgraded BKNG to Buy, calling it his highest‑conviction idea and setting a $5,440 target. He argues that markets have overreacted to AI competition fears, overlooking Booking’s strong margins, defensive moat and the high cost and legal risk of building rival travel platforms from scratch.
Mollins expects AI platforms to partner with Booking rather than compete head‑on, feeding traffic via affiliate and meta‑search models. His forecasts now sit above Street estimates for room nights, revenue, EBITDA and EPS into 2026, helped by FX tailwinds, leaving BKNG trading at what he views as a low‑risk, high‑reward entry point.
NuScale Power, by contrast, is facing a reality check as Marc Bianchi cuts SMR from Buy to Hold, warning of higher project risk tied to its flagship Romanian venture at Doicesti. A key shareholder vote on the Final Investment Decision could add volatility, with new terms shifting more performance risk for the first NuScale Power Module back onto the company.
The Doicesti project is NuScale’s main commercial proof point after a previous FEED‑stage project was terminated, and delays to 2033‑2034 COD push revenue further out. While NuScale still holds about $750 million in cash and has a fresh ATM facility, the new risk‑sharing structure and long lead time make the stock, in Bianchi’s view, one to watch rather than aggressively accumulate.
Spotify remains a streaming giant, but Jeffrey Wlodarczak has stepped back from his bullish stance, slashing his YE 2026 target from $875 to $420 and downgrading SPOT to Hold. He acknowledges strong Q4 2025 numbers—record users, rising premiums and robust free cash flow—yet sees AI as a structural threat that could shrink the premium music market over time.
The concern is that AI‑generated music, powerful recommendation engines and cheap bundles like Google’s Gemini package could turn Spotify into a squeezed middleman. While features such as AI DJ and internal AI tools may soften the blow and ad‑supported usage could benefit, he believes AI disruption is inevitable, justifying lower MAU, ARPU and valuation assumptions.
Fastly, on the other hand, is being recast as a stealth AI winner, with Jonathan Ho upgrading FSLY to Buy after what he calls a stellar quarter. Surging traffic from LLMs and agentic AI is pushing more data across its content delivery network, while customers sign larger, multi‑year deals covering delivery, security and compute.
Ho argues that as AI agents and frontier models from players like Anthropic and Google become more common, Fastly stands to gain from both higher volumes and demand for sophisticated bot management. He flags risks from hyperscale competition and pricing pressure, but sees the risk‑reward as attractive given how early the agentic AI trend still is.
MercadoLibre rounds out the list as Marcelo Santos upgrades MELI to Overweight, lifting his price target to $2,800 and naming it his top LatAm tech pick. After lagging the MSCI LatAm sharply, Santos sees the risk‑reward improving as competition eases, with Shopee raising take rates and MELI pushing through fee increases without major pushback.
He no longer sees big downside to 2026‑2027 earnings expectations and is betting on Brazilian growth staying above 30% in Q4 and remaining strong into 2026. Backed by currency tailwinds, margin recovery and faster credit expansion, Santos’ DCF suggests meaningful upside, positioning MELI as a leading long‑term play on underpenetrated e‑commerce and digital finance in Latin America.