Netflix back on track, Starbucks rating lowered: Leading analyst insights from Wall Street

Today's Key Wall Street Analyst Actions

Stay informed with the most notable analyst rating changes and research highlights from across Wall Street. Below are the top upgrades, downgrades, and new coverage initiations that investors should be aware of today.

Top 5 Analyst Upgrades

• GE Vernova (GEV): Rothschild & Co Redburn has raised its rating on GE Vernova from Sell to Buy, increasing the price target to $1,100 from $560. The firm cites stronger-than-anticipated demand and profit margins in both new equipment and service segments within the power and utilities sector.
• AutoZone (AZO): Argus has upgraded AutoZone to Buy from Hold, setting a price target of $4,325. The decision is based on expectations that AutoZone will return to positive year-over-year earnings growth in the third quarter, following two quarters of declines.
• Verizon (VZ): Scotiabank has lifted its rating on Verizon to Outperform from Sector Perform, with a new price target of $54.50, up from $50.25. After discussions with management, the firm notes strong momentum in subscriber growth and cost management.
• Brinker (EAT): Wolfe Research has upgraded Brinker to Outperform from Peer Perform, assigning a price target of $184. The firm highlights Chili’s improved value perception and above-average customer traffic.
• Iqvia (IQV): TD Cowen has moved Iqvia to Buy from Hold, raising the price target to $213 from $174. The firm does not anticipate that artificial intelligence will negatively impact the company’s revenue.

Top 5 Analyst Downgrades

• Starbucks (SBUX): Wolfe Research has downgraded Starbucks to Peer Perform from Outperform, citing a need for more consistent execution despite early signs of progress in the company’s turnaround efforts.
• Talkspace (TALK): William Blair has lowered its rating on Talkspace to Market Perform from Outperform after the company agreed to be acquired by Universal Health Services (UHS) for $5.25 per share, totaling $835 million. The firm expects the deal to close as planned, with little chance of competing offers.
• Western Alliance (WAL): TD Cowen has downgraded Western Alliance to Hold from Buy, with a price target of $83. The firm points to unique risk exposures and reduced investor tolerance for future credit events, while some credit issues remain unresolved.
• Brown-Forman (BF.B): Bernstein has cut its rating on Brown-Forman to Market Perform from Outperform, lowering the price target to $29 from $37.50. The firm expects prolonged margin pressure due to higher costs for barreled whiskey.
• Marriott Vacations (VAC): Citizens has downgraded Marriott Vacations to Market Perform from Outperform after the fourth-quarter report, suggesting the board should have considered strategic alternatives given the stock’s 60% decline during the previous CEO’s tenure.

Top 5 New Analyst Coverages

• Netflix (NFLX): Wells Fargo has resumed coverage on Netflix with an Equal Weight rating and a $105 price target, down from a prior Overweight rating. The firm believes Netflix will recover from its attempt to acquire Warner Bros. Discovery by focusing on boosting user engagement through expanded content offerings.
• Paramount Skydance (PSKY): Wells Fargo has restarted coverage with an Underweight rating and a $10 price target. The firm is cautious due to Paramount’s higher leverage following the Warner Bros. Discovery (WBD) deal.
• Warner Bros. Discovery (WBD): Wells Fargo has resumed coverage with an Equal Weight rating and a $31 price target, matching the acquisition price by Paramount Skydance. The firm commends management for their efforts to engage buyers and deliver value to shareholders.
• Shake Shack (SHAK): Wolfe Research has initiated coverage on Shake Shack with an Outperform rating and a $118 price target. The firm expects near-term comparable sales growth from easily achievable improvements, and notes that performance outside urban markets is exceeding expectations.
• Wingstop (WING): Wolfe Research has started coverage with an Outperform rating and a $320 price target. The firm is optimistic about Wingstop’s industry-leading unit expansion, driven by committed franchisees, even as comparable sales growth is expected to moderate in 2025.