Wall Street Analysts: Overview of Rating Changes and Latest Investment Recommendations

Transportation and Real Estate Sectors Under Scrutiny – Key Upgrades

The market is actively responding to the latest analyst recommendations from Wall Street. Leading the upgrades is American Airlines (AAL), which Susquehanna rated Positive instead of Neutral, raising the price target from $14 to $20. Analysts point to favorable industry prospects through 2026 and expected margin growth driven by revenue strategies and network optimization.

Similarly, Southwest Airlines (LUV) received a double upgrade – JPMorgan changed its rating from Underweight to Overweight, setting a price target of $60 compared to previous $36. Experts see a significant likelihood that Southwest will achieve a profit of $5 per share by 2026.

In the real estate market, Airbnb (ABNB) saw increased investor interest. Wells Fargo upgraded the platform from Underweight to Equal Weight, raising the target from $118 to $128. The decision is motivated by weaker recent performance and growth potential, especially in hotel and sponsored advertising segments. Barclays also changed its rating to Equal Weight, setting a new target of $120 from earlier $107.

Technology and Innovation – New Recommendations for the Digital Sector

The tech sector received mixed signals from Wall Street. CrowdStrike (CRWD) was upgraded to Buy by Berenberg, despite maintaining a $600 target price. Analysts note that recent stock weakness offers a more attractive valuation for investors.

In the software industry, Autodesk (ADSK) gains recognition – Rothschild & Co Redburn initiated coverage with a Buy rating and a $375 target. The firm expects Autodesk to outperform industry peers, achieving growth of 5.0%-5.5% during 2024-2027, which is above market consensus.

Among medical professionals, Doximity (DOCS) stands out as a leading platform. RBC Capital assigned an Outperform rating with a $59 target, emphasizing consistent double-digit growth and solid margins at 50%.

Entertainment and Gaming Sector – New Market Monitoring

The online gaming segment awaits new recommendations. DraftKings (DKNG) received a Hold rating from Texas Capital with a $39 target. Despite its leading position in the sector, analysts note increased volatility related to expansion into predictive markets and potential tax hikes.

In the retail sector, Chipotle (CMG) is the subject of new recommendations. Telsey Advisory initiated coverage with an Outperform rating and a $50 target, assuming a moderate recovery in consumption by 2026 due to larger tax refunds and lower interest rates.

Logistics and Infrastructure Sector – Change in Outlook

FedEx (FDX) was upgraded from Neutral to Buy by Bank of America, with a $365 target. Analysts forecast that demand will benefit from incentives for accelerated depreciation, leading to significant infrastructure investments estimated at $1.4 trillion over three years for data centers and energy delivery.

Downgrades – Caution Signals

On the other end of the spectrum, Zillow Group (ZG) experienced a decline – Mizuho changed its rating to Neutral from Outperform, lowering the target from $100 to $70. The decision reflects growing concerns over real estate listing distribution, ongoing legal disputes, and potential impacts on the business model.

Adobe (ADBE) was downgraded by BMO Capital from Outperform to Market Perform, with the target reduced from $400 to $375. Despite reasonable valuation, analysts see no positive growth catalysts.

Qualcomm (QCOM) was changed to Neutral by Mizuho, with the target lowered from $200 to $175. Analysts’ forecasts have fallen below consensus due to supply challenges in smartphones.

GE Vernova (GEV) was downgraded by Baird from Outperform to Neutral, with the target price lowered from $816 to $649. Oversupply concerns may outweigh growth potential.

Mattel (MAT) received a rating change to Neutral from Goldman Sachs, with the target maintained at $21. Analysts now see a more balanced risk and reward profile.

New Coverage – Casey’s and Retail Outlook

Bank of America initiated coverage of Casey's General Stores (CASY) with a Buy rating and a $700 target. The premium valuation reflects the company’s focus on higher-margin food services and steady EBITDA growth.

A summary of recommendations shows that Wall Street analysts perceive mixed prospects for the market – with transportation and technology sectors receiving support, while the real estate and parts of the tech sector face caution.