AMD, Spotify downgraded: 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.

Top 5 Upgrades:

• Leerink upgraded Regeneron (REGN) to Outperform from Market Perform with a price target of $834, up from $762. The shares have fallen 35% over the past six months, creating an opportunity to capitalize on weakness following a stepdown in Eylea franchise expectations, the firm tells investors in a research note.
• Citi upgraded Molson Coors (TAP) to Neutral from Sell with a price target of $57, up from $47. Looking ahead, the company’s market share comparisons get easier in the spring and the beer category will cycle easier comps in the summer, the firm tells investors in a research note.
• Citi upgraded NXP Semiconductors (NXPI) to Neutral from Sell with a price target of $210, up from $200. The company reported Q4 results slightly above estimates due to strength from China but guided below consensus due to exiting lower-margin products in the Communications segment, the firm tells investors in a research note.
• Benchmark upgraded Silicon Labs (SLAB) to Buy from Hold with a $160 price target. With Silicon Labs finally having worked through the bulk of excess industry and customer inventory levels, the company posted an in-line December quarter performance, with flat sales sequentially that matched its original Q4 guidance, the firm tells investors in a research note.
• Jefferies upgraded Cardinal Health (CAH) to Buy from Hold with a price target of $150, up from $140. The firm thinks Cardinal’s earnings track record is “undeniable and clearly differentiated” versus its prior history under the new management.

Top 5 Downgrades:

• Citi downgraded AMD (AMD) to Neutral from Buy with a price target of $110, down from $175. The company reported “decent” results driven by higher central processing unit sales, but didn’t provide artificial intelligence revenue guidance, and it appears AMD’s AI revenue is flat to down for the first half of 2025 with margin dilution, the firm says.
• Rosenblatt downgraded Spotify (SPOT) to Neutral from Buy with a price target of $658, up from $473. With the shares up 37% year-to-date inclusive of a 13% jump after pre-open earnings Tuesday, the firm sees less scope for multiple expansion and earnings upside in this environment.
• Wells Fargo downgraded Snap (SNAP) to Equal Weight from Overweight with a price target of $11, down from $15, following the Q4 report. Snap is entering a reinvestment period and while an “upside option” remains with a potential U.S. TikTok ban, the company’s app redesign is taking longer and its advertising revenue growth “remains stubbornly below” industry levels, the firm tells investors in a research note.
• Bernstein downgraded STMicroelectronics (STM) to Market Perform from Outperform with a price target of $26, down from $33. The firm says that following the company’s “weak” Q1 guidance and lack of visibility implied by no 2025 guidance, it “considerably revised down” its 2025 estimates, coming in below consensus.
• Loop Capital downgraded Aspen Technology (AZPN) to Hold from Buy with a price target of $265, up from $260, citing the acquisition by Emerson Electric (EMR). Another bidder is not likely to emerge given the relatively high purchase valuation, Emerson’s former majority investment in Aspen, the firm tells investors in a research note.

Top 5 Initiations:

• Raymond James initiated coverage of Robinhood (HOOD) with a Market Perform rating and no price target. Despite all positives, the stock’s current valuation requires one to underwrite sustainably high transaction volumes and/or limited downside to short-term interest rates, Raymond James contends.
• Wells Fargo initiated coverage of CoStar Group (CSGP) with an Underweight rating and $65 price target. Although CoStar’s core businesses should benefit from a rebound in commercial real estate, the stock’s valuation and Street estimates “look lofty” with heavy investment still needed for Homes.com, the firm tells investors in a research note.
• Piper Sandler initiated coverage of Opera (OPRA) with an Overweight rating and $25 price target. The firm likes the story given Opera’s “unique position” as a browser, growth in higher average revenue per user segments and Western Markets and ramping up of new first- and third-party advertising products.
• Lake Street initiated coverage of Knightscope (KSCP) with a Buy rating and $17 price target. The firm thinks the increasing focus on shortages and costs in the labor market and rising property crime provide “solid tailwinds” as the company’s autonomous service robots “nicely complement law enforcement officers and security guards.”
• TD Cowen reinstated coverage of Tempus AI (TEM) with a Buy rating and price target of $74, up from $58, following the close of the Ambry acquisition. The deal affords Tempus with a $300M profitable germline testing lab and offers opportunities to enhance the company’s existing products, expand into new areas and provides a path to positive free cash flow, with the main drawback being Ambry’s slower growth, the firm tells investors in a research note.