Netflix upgraded, Reddit 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:

• Rosenblatt upgraded Netflix (NFLX) to Buy from Neutral with a price target of $1,494, up from $680, after the company “delivered on so many levels” in Q4. Canaccord also upgraded Netflix to Buy from Hold with a price target of $1,150, up from $940, after the company reported strong Q4 results, with paid memberships, revenue, and profitability all coming in ahead of expectations. Meanwhile, Barclays upgraded Netflix to Equal Weight from Underweight with a price target of $900, up from $715, and Benchmark upgraded Netflix to Hold from Sell with no price target.
• Bernstein upgraded Darden (DRI) to Outperform from Market Perform with a price target of $215, up from $180. After a “dismal 2024, the restaurants sector looks relatively inexpensive,” the firm tells investors in a research note, adding that Darden has upside from improvements in its core middle-income consumer cohort, rollout of UberDirect with marketing support, and efficiency measures supporting margin expansion.
• Wells Fargo upgraded 3M (MMM) to Overweight from Equal Weight with a price target of $170, up from $140. The company is in the “early days of significant margin expansion” at a time of uncertainty about the trajectory of an industrial recovery, which is attractive, the firm tells investors in a research note.
• Summit Insights upgraded Seagate (STX) to Buy from Hold. The firm is positive on the company’s HAMR HDD technology transition driving upside to its gross margin in the second half of FY25, also noting that the current favorable pricing environment and product mix at Seagate will continue.
• Barclays upgraded Hormel Foods (HRL) to Overweight from Equal Weight with a price target of $36, up from $35. The firm sees the company’s investments into its “Transform and Modernize” initiative materializing into a higher long-term margin structure.

Top 5 Downgrades:

• Roth MKM downgraded Reddit (RDDT) to Neutral from Buy with a price target of $195, up from $116. Given the rise in the share price, the firm believes the near-term risk/reward is fairly balanced at current levels.
• Barclays downgraded Ford (F) to Equal Weight from Overweight with a price target of $11, down from $13. The firm says that while it appreciates Ford’s transformation efforts, it believes elevated volume headwinds in 2025 due to inventory destocking and continued modest price normalization will drive downside on earnings estimates.
• Stephens downgraded Elevance Health (ELV) to Equal Weight from Overweight with a price target of $440, down from $520. Despite the company having previously cut expectations in conjunction with its Q3 earnings report, the firm sees a “formidable set of percolating risks” to the current Street 2025 adjusted EPS forecast.
• Bernstein downgraded Yum! Brands (YUM) to Market Perform from Outperform with a price target of $135, down from $140. Yum may witness pressures in reaching its long-term growth algorithm in 2025, resulting in a range-bound stock, the firm tells investors in a research note.
• TD Cowen downgraded Celsius Holdings (CELH) to Hold from Buy with a price target of $29, down from $40. Celsius shares are already well below their highs, but the valuation multiple could contract even further if the company goes “ex-growth,” the firm tells investors in a research note.

Top 5 Initiations:

• Citi resumed coverage of Disney (DIS) with a Buy rating and $125 price target. While consensus earnings estimates “look a touch high,” the stock’s risk/reward is attractive at prevailing levels, the firm tells investors in a research note.
• Stifel initiated coverage of Cytokinetics (CYTK) with a Buy rating and $80 price target. Cytokinetics “is an out-of-favor stock” following the “controversial” Royalty Pharma deal, but Stifel believes the stock’s valuation has largely reset and with a catalyst-rich 12-months ahead.
• Goldman Sachs initiated coverage of Viking Holdings (VIK) with a Neutral rating and $49 price target. The firm sees a “lot to like” about Viking’s business model, but with the stock up 73% since the initial public offering in May 2024, Goldman would look for a more favorable entry point at these levels.
• Truist initiated coverage of APi Group (APG) with a Buy rating and $45 price target. The firm says APi is an “underappreciated name” as it “quietly” holds the leading market position in U.S. fire protection.
• Craig-Hallum initiated coverage of Daktronics (DAKT) with a Buy rating and $26 price target. The firm sees a significant stock opportunity and the potential for a $35-$40 stock over time.