Qualcomm, Adobe cut: Leading Wall Street analysts weigh in

Today's Key Analyst Actions on Wall Street

Stay informed with the latest influential analyst recommendations and market-moving research updates. Below is a summary of the most notable upgrades, downgrades, and new coverage initiations compiled for investors.

Top 5 Analyst Upgrades

• Clear Street raises rating on Circle Internet (CRCL) to Buy (from Hold), setting a new price target of $136, up from $92. The firm highlights five factors supporting USDC's growth and adoption, even as the broader crypto sector has declined by about 44% since last October. These drivers include tokenization, prediction markets, geopolitical tensions in the Middle East, the intersection of agentic AI with programmable stablecoins fueling demand, and increased regulatory certainty following President Trump's endorsement of the CLARITY Act.
• Arete upgrades Trade Desk (TTD) to Neutral (from Sell) with a $25 price target. The firm notes that management faces mounting pressure to rebuild investor trust after shares have dropped 49% over the past year.
• Berenberg upgrades Ecolab (ECL) to Buy (from Hold), increasing the price target to $326 from $300. The firm expects recent price hikes to remain a lasting part of Ecolab’s pricing structure rather than being reversed.
• Keefe Bruyette lifts PennyMac Financial (PFSI) to Outperform (from Market Perform) with an unchanged price target of $115. The upgrade is based on valuation, with the firm seeing a 38% potential upside.
• Keefe Bruyette upgrades Rocket Companies (RKT) to Outperform (from Market Perform), raising the price target to $22 from $20. The decision is driven by valuation, as shares have fallen 25% so far this year.

Top 5 Analyst Downgrades

• Seaport Research lowers Qualcomm (QCOM) to Sell (from Neutral) with a $100 price target. The firm believes that a memory supply crunch will disproportionately impact Qualcomm’s customers, leading to market share losses as the company’s addressable market contracts this year.
• Argus downgrades Adobe (ADBE) to Hold (from Buy). Despite a 12% increase in operating income for Q1 and rapid integration of generative AI across its products, the firm points out that the announcement of CEO Narayan stepping down after 18 years has overshadowed the company’s positive results.
• Jefferies cuts Incyte (INCY) to Hold (from Buy), lowering the price target to $94 from $120 following a change in analyst coverage. The downgrade is attributed to concerns about upcoming patent expirations.
• Jefferies downgrades Alnylam (ALNY) to Hold (from Buy), reducing the price target to $330 from $522 after a shift in analyst coverage. While the firm is impressed by Alnylam’s RNAi technology, it believes the stock is already fully valued.
• Jefferies lowers Immunocore (IMCR) to Hold (from Buy), cutting the price target to $33 from $48 after a change in analyst coverage. The firm notes that while Immunocore’s Kimmtrak is a viable product, the market for uveal melanoma is limited and sales are nearing their peak.

Top 5 New Analyst Coverages

• Citi initiates coverage on Nebius (NBIS) with a Buy rating and $169 price target. Citi projects that AI workloads will surge from 18GW in 2025 to 110GW by 2030, a 44% annual growth rate, and expects Nebius to expand its market share, reaching about 5GW of active power by 2030.
• Evercore ISI starts coverage on Cohu (COHU) with an Outperform rating and $35 price target. The firm identifies three growth drivers: a cyclical rebound in automotive and industrial markets in 2026–2027, expansion into AI and computing applications, and stable recurring revenue.
• Macquarie initiates coverage on PayPay (PAYP) with an Outperform rating and $22.90 price target. The firm highlights PayPay’s leadership in Japan’s QR code payment sector, commanding a 65% market share.
• Guggenheim begins coverage on JFrog (FROG) with a Buy rating and $60 price target. JFrog is recognized for its critical role in software development and risk management, serving as the primary system for managing software artifacts.
• Jefferies resumes coverage on Eaton (ETN) with a Buy rating and $430 price target after the acquisition of Boyd Thermal. The firm notes that this deal strengthens Eaton’s data center offerings with advanced thermal management and engineered solutions.