Deckers downgraded, Morgan Stanley 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.
Confident Investing Starts Here:
Top 5 Upgrades:
Erste Group upgraded Morgan Stanley (MS) to Buy from Hold. The company's earnings in 2025 will increase more strongly than revenue and its return on equity is significantly higher than that competitors, the firm tells investors in a research note.
Baird upgraded Wix.com (WIX) to Outperform from Neutral with a price target of $190, down from $215. The company's product 'is becoming increasingly compelling' and expectations now seem more reasonable post the Q1 report, the firm tells investors in a research note.
Northland upgraded SolarEdge (SEDG) to Market Perform from Underperform with an unchanged price target of $15.50. Shares have declined meaningfully since the firm's downgrade on May 16, notes the firm, which argues that regardless of what legislation ultimately looks like, utility-scale solar is 'the cheapest and fastest way to add generation capacity' and SolarEdge is well-positioned as a non-Chinese supplier with cybersecurity capabilities.
Redburn Atlantic upgraded Charles River (CRL) to Buy from Neutral with a price target of $182, down from $188. The announcement that activist Elliott is now Charles River's largest investor and the company conducting a 'wide-ranging' strategic offers a potential catalyst for the shares, the firm tells investors in a research note.
JPMorgan upgraded WM (WM) to Overweight from Neutral with a price target of $277, up from $225, after transfer in analyst coverage. The firm expects WM's valuation gap versus peers narrow longer term, driven by revenue and cost synergies in Stericycle and sustainability projects gaining traction.
Top 5 Downgrades:
Telsey Advisory downgraded Deckers Outdoor (DECK) to Market Perform from Outperform with a price target of $120, down from $240. The firm cites the deceleration of the HOKA and DTC businesses, margin pressures from channel mix shifts towards wholesale, the potential for increased promotions against low levels in the prior years, and tariff costs, along with general challenges to overall global macro visibility, for its downgrade. Evercore ISI and KeyBanc also downgraded Deckers Outdoor to Neutral-equivalent ratings.
Erste Group downgraded McDonald's (MCD) to Hold from Buy. The company's sales will 'grow very slowly' in 2025 and a higher growth rate is 'only realistic in the coming year,' the firm tells investors in a research note.
Raymond James downgraded Booz Allen (BAH) to Market Perform from Outperform with no price target following a 'weak' quarterly report and guidance.
JPMorgan downgraded GFL Environmental (GFL) to Neutral from Overweight with a price target of $54, up from $51, following a transfer in analyst coverage. GFL's risk/reward is balanced at these levels, given the shares reflect the company's improved cash conversion profile, the firm says.
Bernstein downgraded TechnipFMC (FTI) to Market Perform from Outperform with a price target of $32, down from $33. The firm's estimates for TechnipFMC in 2027 and 2028 are below consensus.
Top 5 Initiations:
Citi initiated coverage of US Foods (USFD) with a Buy rating and $95 price target. The firm views the North America food distributor industry backdrop favorably, saying restaurant wallet share is a likely 'buffer' to macro risks while the sector has limited tariff risk. Citi also started coverage of Performance Food Group (PFGC) with a Buy rating and Sysco (SYY) with a Neutral.
Morgan Stanley resumed coverage of Loar Holdings (LOAR) with an Overweight rating and $100 price target. Loar continues to execute on its organic and inorganic growth strategy and end market demand remains robust with record bookings, the firm tells investors.
Lucid Capital initiated coverage of Edesa Biotech (EDSA) with a Buy rating and $9 price target. The firm has a positive outlook on the company's lead clinical asset, EB06.
Texas Capital initiated coverage of Universal Technical (UTI) with a Buy rating and $38 price target. Universal embarked on re-energization of operational processes, real-estate rationalizations and cost-cutting about six years ago following years of sluggish student enrollment and started showing student-starts growth, a return to breakeven and 'decent profitability,' the firm tells investors. Texas Capital also started coverage of Lincoln Educational (LINC), Lindblad Expeditions (LIND), and American Public Education (APEI) with Buy ratings.
Cantor Fitzgerald initiated coverage of Serve Robotics (SERV) with an Overweight rating and $17 price target. The firm believes the company benefits from 'compelling' unit economics, material partnerships for scale and expansion, and multiple applications that increase its total addressable market.
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