IBM initiated, Southwest 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.

Top 5 Upgrades: 

• Argus upgraded Southwest (LUV) to Buy from Hold with a $35 price target. The firm cites the prospects for strong travel demand and the management’s ability to implement its growth initiatives, noting that in order to offset rising costs and maximize revenue growth, Southwest plans to increase its capacity by 1%-2% and fully utilize its existing fleet through 2027.
• Argus upgraded RTX (RTX) to Buy from Hold with a $142 price target. RTX should also benefit from a projected 8% growth in air travel this year, anticipated double-digit growth in its aftermarket business and improvements in its supply chain, Argus argues.
• Argus upgraded Peloton (PTON) to Buy from Hold with a $15 price target. The firm sees the company as well positioned to benefit from demand for in-home health and fitness subscription services, while its ongoing cost cutting is likely to result in expenses in line with those of its competitors.
• Mizuho upgraded First Solar (FSLR) to Outperform from Neutral with a price target of $259, up from $218. Based on the firm’s channel checks, it sees a “better moat” for First Solar versus crystalline silicon competition in the U.S., saying other U.S. cell manufacturers are opting for the “expensive/inefficient” passivated emitter and rear cells due to the company’s hold on the more efficient tunnel oxide passivated contact technology. 
• KeyBanc upgraded Steel Dynamics (STLD) to Overweight from Sector Weight with a $155 price target. President Trump’s increasing threats to tax key trading partners should offer a lift to U.S. steel pricing sentiment over the next several months, the firm tells investors in a research note.

Top 5 Downgrades:

• Argus downgraded Equifax (EFX) to Hold from Buy. The company is struggling to meet its growth targets in a business environment marked by higher interest rates and a slowdown in mortgage-related demand, the firm tells investors in a research note. 
• Goldman Sachs downgraded Dynavax (DVAX) to Sell from Neutral with a price target of $12, down from $15. The evolving competitive landscape in shingles vaccination lowers the potential of the company’s Z-1018 program and increases long-term revenue uncertainty, the firm tells investors in a research note. 
• Goldman Sachs downgraded Regenxbio (RGNX) to Neutral from Buy with a price target of $14, down from $38. The firm has questions about the ultimate appeal of gene therapy in wet age-related macular degeneration given the largely elderly patient population and increasing injection-free period of existing anti-VEGF therapy, which it says offer significantly more favorable pricing. 
• BMO Capital downgraded Fluence Energy (FLNC) to Market Perform from Outperform with a price target of $10, down from $22. The company’s Q1 update “raises sufficient doubt” about Fluence’s competitive position, the firm tells investors in a research note. Guggenheim also downgraded Fluence Energy to Sell from Buy with a price target of $6, down from $26, following the release of the company’s Q1 results, which missed estimates and included significant revisions to the company’s outlook for FY25. The energy storage market is still growing, but Fluence’s struggles to execute even in the currently favorable environment have caused the firm to “reassess our approach to valuation,” the analyst tells investors.
• BMO Capital downgraded Q32 Bio (QTTB) to Market Perform from Outperform with a price target of $3, down from $22. The company announced an internal restructuring, discontinuing development of its main value driver, ADX-097, to focus on bempikibart development in patients with alopecia areata, the firm notes. 

Top 5 Initiations: 

• Oppenheimer initiated coverage of IBM (BM) with an Outperform rating and $320 price target. The firm’s bullish stance is based on the view that IBM will see sustained double-digit revenue growth in its software portfolio, driven primarily by its Red Hat offerings, will see an inflection in its consulting growth in the second half of 2025 with recovery in application development and management, and has “optionality” with creation and management of artificial intelligence applications. 
• Bernstein initiated coverage of Biogen (BIIB) with a Market Perform rating and $160 price target. For the past five years, Biogen “has lived and died” on the outlook for Alzheimer’s, and Leqembi launch “has not come anywhere close to meeting lofty expectations that in our view were unrealistic,” the firm tells investors in a research note. 
• Jefferies initiated coverage of Waystar (WAY) with a Buy rating and $51 price target. The firm believes there is high interest in a capable platform that can integrate with a provider’s existing IT stack, which positions Waystar for a multi-year runway of low-double-digit growth and gradual margin expansion. 
• Cantor Fitzgerald initiated coverage of Domo (DOMO) with an Overweight rating and $11 price target. The firm recommends investors consider Domo, saying it is an “under-followed” small-cap data cloud name that is expanding to adjacent areas in artificial intelligence model management and agentic AI. 
• Deutsche Bank initiated coverage of Avadel Pharmaceuticals (AVDL) with a Buy rating and $12 price target. The firm sees potential upside from current levels following the 25% selloff in January post the preliminary results for Q4 and revised guidance for fiscal 2025, both of which came in below Street expectations due to an increased discontinuation rate for Lumryz.