Wall Street Research Summary

Here’s a roundup of some key updates making waves today. Let’s take a look at the top upgrades and downgrades in the market that investors should be aware of.

Top 5 Upgrades:

• Jefferies upgraded Ulta Beauty (ULTA), raising its price target from $635 to $700 and switching the rating from hold to buy. The firm noted enhanced confidence in the company’s earnings sustainability, pointing to a “broadening of the beauty landscape and renewal of its approach to makeup.”

• Barclays upgraded Okta (OKTA) from equal weight to overweight with a new price target of $90, up from $85. They see Okta’s position improving as a vendor with anticipated growth in spending.

• Wells Fargo raised Biogen (BIIB) from equal weight to overweight, increasing its price target from $200 to $250. The firm expects new revenue streams from immunology and kidney pipelines to lessen Biogen’s dependence on Alzheimer’s disease therapies.

• Stifel upgraded Plexus (PLXS), upping its price target from $200 to $250 and changing the rating from hold to buy. They believe Plexus is entering a multi-sector revenue phase in aerospace, defense, healthcare, and semiconductor capital equipment, backed by an engineering-focused strategy yielding high-margin wins.

• B. Riley upgraded Axcelis (ACLS) from neutral to buy, increasing the price target from $91 to $150. They reportedly anticipate stronger Q1 results compared to consensus and stable Q2 guidance as the situation in China stabilizes.

Top 5 Downgrades:

• Mizuho downgraded Qorvo (QRVO), lowering its price target from $70 to $66 and shifting from neutral to underperform. The downgrade was influenced by findings related to supply chain issues and industry requests for lower expectations in the mobile phone sector. Additionally, Mizuho downgraded Skyworks (SWKS) from neutral to underperform, reducing its price target from $60 to $46.

• Wells Fargo downgraded NXP Semiconductors (NXPI), cutting the price target from $265 to $235 and changing the rating from overweight to equal weight due to signs of weakness in the automotive sector.

• Barclays downgraded Avis Budget (CAR) from equal weight to underweight, raising the price target from $95 to $150. They attributed this to a significant mismatch in supply and demand, noting that two shareholders account for a large portion of the company’s ownership and profits.

• BofA downgraded Mohawk Industries (MHK) with a price target cut from $149 to $122, changing the rating from buy to neutral. This change reflects ongoing softness in flooring demand in the U.S., coupled with rising costs and broader economic challenges in Europe.

• Doximity (DOCS) was downgraded from buy to hold, with a price target decrease from $37 to $29. The firm expressed a more cautious view regarding Doximity’s growth, citing slowing earnings and increasing structural risks.