Top Five Upgrades
Mizuho upgraded Palantir (PLTR) from Neutral to Outperform, maintaining a $195 price target. The firm stated the company achieved total revenue growth, accelerating growth rates, and margin expansion, calling its "scale performance unique in the software industry." Rosenblatt upgraded Cadence Design Systems (CDNS) from Neutral to Buy, raising the price target from $335 to $360. The firm viewed the company's Q4 results as "solid across the board." Baird upgraded Itron (ITRI) from Neutral to Outperform, increasing the price target from $118 to $128 and recommending a buy following the Q4 earnings report. Citizens upgraded Rush Street Interactive (RSI) from In-Line to Outperform with a $24 price target. The firm stated the company "continues to demonstrate it has built one of the most resilient business models in the online gaming space." TD Cowen upgraded Medpace (MEDP) from Sell to Hold, lowering the price target from $462 to $419. The firm indicated the stock has retreated from peak valuation and now reflects reasonable value.
Top Five Downgrades
Citizens downgraded Workday (WDAY) from Outperform to In-Line without specifying a price target, following the announcement of the founder's return as CEO and preliminary Q4 results. The firm noted that the internal AI innovation required for the company's transition from a SaaS model to the AI era demands significant time and capital investment from the founder. Williams Trading downgraded Crocs (CROX) from Hold to Sell, while raising the price target from $75 to $84. The firm cited persistently shrinking demand in the US market. Citizens downgraded Similarweb (SMWB) from Outperform to In-Line without a price target. The company's Q4 revenue significantly missed expectations, and its guidance also fell short. Truist downgraded Genuine Parts (GPC) from Buy to Hold, reducing the price target from $162 to $127. While the business spinoff is theoretically positive, the automotive segment continues to disappoint. BTIG downgraded Masimo (MASI) from Buy to Neutral after Danaher (DHR) announced its acquisition of Masimo for $180 per share in cash.
Top Five Initiations/Resumptions of Coverage
Mizuho resumed coverage of Medtronic (MDT) with an Outperform rating and a $125 price target. New products are expected to drive growth in fiscal year 2027. Compass Point initiated coverage of Nebius (NBIS) with a Buy rating and a $150 price target. The company is a full-stack AI infrastructure provider offering GPU computing power and an AI cloud platform. UBS initiated coverage of AeroVironment (AVAV) with a Neutral rating and a $259 price target. Its 2028 margin expectations are below the market's optimistic consensus. UBS initiated coverage of Kratos Defense & Security Solutions (KTOS) with a Neutral rating and a $79 price target. The current share price is seen as fully reflecting growth expectations. Roth Capital initiated coverage of Modine (MOD) with a Buy rating and a $263 price target. The company provides unique, comprehensive thermal management solutions for data center cooling and refrigeration.