Top 5 Buy Calls:
1. Starbucks upgraded to Buy at TD Cowen
TD Cowen upgraded Starbucks (SBUX) to Buy from Hold with a price target of $120, up from $106. The firm says the company has “numerous tangible drivers” to drive positive sales revisions in a “strong category backdrop.” Starbucks is prioritizing labor investments and its margins will recover, TD Cowen tells investors in a research note. After meeting with management, the firm is confident the company can deliver sales and earnings upside to justify its above-consensus fiscal 2028 estimates.
2. Wendy’s upgraded to Buy at Argus amid take-private reports
Argus upgraded Wendy’s (WEN) to Buy from Hold with a $12 price target. The firm cited reports that the company is possibly being taken private by activist investor Trian Fund Management and believes the takeover talk will fuel further upward momentum in the stock price. Argus further states that there is room for improvement in operations, noting that while international sales have been growing, they are not outpacing the decrease in U.S. sales.
3. Lowe’s upgraded to Buy at Citi
Citi upgraded Lowe’s (LOW) to Buy from Neutral with an unchanged price target of $285. The firm recommends buying some “cyclical share gainers” in the broadlines and hardlines retail group following the recent share pullbacks. Lowe’s should top Q1 consensus estimates and continue to outperform the industry, Citi tells investors in a research note. Citi finds the shares attractive in the current home improvement landscape given its higher exposure to smaller projects.
4. Cisco upgraded to Buy at HSBC on stronger AI infrastructure momentum
HSBC upgraded Cisco (CSCO) to Buy from Hold with a price target of $137, up from $77. The company reported a “modest” beat in fiscal Q3, but new AI orders reset the growth debate as management expects FY27 AI revenue of at least $6B, implying about 50% year-over-year growth, the firm tells investors. HSBC cites stronger AI infrastructure momentum and better earnings visibility for its raised target and rating.
5. Uber upgraded to Outperform at Fox Advisors as investments start paying off
Fox Advisors upgraded Uber (UBER) to Outperform from Equal-Weight with a $95 price target. The firm thinks a heavier rate of investment over the past year is “poised to more consistently contribute to profit growth,” says the analyst. Uber may have just “topped off” by expanding into hotel bookings, acquiring parking marketplace Spot Hero and taking other strategic actions to “position its rideshare platform for a hybrid autonomous rideshare future,” the analyst added.
Top 5 Sell Calls:
1. Trade Desk downgraded to Reduce at HSBC
HSBC downgraded Trade Desk (TTD) to Reduce from Hold with a price target of $20, down from $31. Trade Desk’s weaker outlook reflects slower growth driven by rising competition from Amazon’s (AMZN) DSP, AI-driven shifts away from the open web, and escalating friction with major ad agencies that are increasingly restricting platform usage, creating downside risk to both ad spend and take rates, the firm tells investors in a research note.
2. Wendy’s downgraded to Underweight at JPMorgan
JPMorgan downgraded Wendy’s (WEN) to Underweight from Neutral with a price target of $6, down from $7. The firm cites Wendy’s continued decline in U.S. same-store-sales trends with no visibility for achieving the guided second half of 2026 improvement for the downgrade. JPMorgan also sees a lack of direction around the company’s future with no permanent leadership and “ongoing sub-optimal allocation” of capital.
3. DraftKings initiated with an Underperform at BNP Paribas
BNP Paribas initiated coverage of DraftKings (DKNG) with an Underperform rating and $20 price target. The firm says the “dramatic” rise of predictions is “clouding” the company’s outlook. Further, BNP Paribas sees downside risk to consensus estimates.
4. ZoomInfo downgraded to Underperform at Mizuho
Mizuho downgraded ZoomInfo (GTM) to Underperform from Neutral with a price target of $3, down from $10. The company’s “disappointing” fiscal 2026 guidance revision implies its revenue will decline 8.5% in the second half of the year, the analyst tells investors in a research note. The firm says ZoomInfo is seeing a regression in its down-market and up-market growth trajectories, with late-quarter deterioration in the software vertical from “AI-driven purchasing paralysis.” Mizuho is “skeptical” that the company has a clear path to returning to growth over the near-term.
ZoomInfo downgraded to Underweight at Piper Sandler
Piper Sandler downgraded ZoomInfo to Underweight from Neutral with a price target of $4, down from $7. The company’s modest Q1 revenue beat was overshadowed by a guide-down of the fiscal 2026 outlook from 1% year-over-year growth to an expected 4% decline, the firm tells investors in a research note. Piper says this “feels like a material expectations reset.” It believes ZoomInfo faces multiple headwinds and that its transition to usage will take time while introducing more risk.
5. A.O. Smith downgraded to Underweight at JPMorgan
JPMorgan downgraded A.O. Smith (AOS) to Underweight from Neutral with a price target of $60, down from $65. The firm is more cautious on the shares given the company’s China and residential exposure. The downgrade reflects A.O. Smith’s lowered guidance, its meaningful residential exposure, and a China outlook that has shifted from an anticipated second half of 2026 recovery to a 15% sequential decline in Q2, the analyst tells investors.
