Alphabet and Nvidia receive upgrades: Leading analysts on Wall Street share their top picks

Today's Key Analyst Actions on Wall Street

Stay updated with the most influential analyst recommendations and rating changes making headlines across the financial markets. Below is a summary of the latest upgrades, downgrades, and new coverage that investors should be aware of, as gathered by The Fly.

Top 5 Analyst Upgrades

• Alphabet (GOOGL) received an upgrade from Wells Fargo, moving to Overweight from Equal Weight. The price target was raised to $387 from $354. According to the firm, Alphabet stands out in three critical areas for AI success: customer data, distribution, and computing power.
• Nvidia (NVDA) was upgraded to Buy from Hold by Aletheia, with a price target set at $250. The analysts consider the stock undervalued ahead of Nvidia’s Q4 results, which are expected to surpass forecasts.
• Tandem Diabetes (TNDM) saw Lake Street raise its rating to Buy from Hold, increasing the price target to $50 from $14. The firm anticipates that the company’s shift to a pharmacy-based model will drive steadier growth, better margins, and significant free cash flow.
• BlackRock (BLK) was upgraded by UBS to Buy from Neutral, with a new price target of $1,280. UBS cites robust Q4 performance, encouraging commentary at their financials conference, and a strong start to Q1 inflows as reasons for the upgrade.
• Henry Schein (HSIC) received an upgrade from Baird to Outperform from Neutral, with the price target raised to $100 from $78. The firm maintains a positive outlook on its dental sector holdings.

Top 5 Analyst Downgrades

• Workday (WDAY) was downgraded by Jefferies to Hold from Buy, with the price target cut to $150 from $325. The firm notes that application software stocks have underperformed the broader software sector. Jefferies also lowered ratings for DocuSign (DOCU) and Monday.com (MNDY) to Hold from Buy.
• General Mills (GIS) was moved to Neutral from Buy by BofA, with a reduced price target of $48 from $55 after the CAGNY conference. The firm’s earlier optimism, based on a rebound in Pet and stability in North America Retail, has faded.
• Arcellx (ACLX) was downgraded by Baird to Neutral from Outperform, with the price target raised to $115 from $106. This follows Gilead Sciences’ (GILD) announcement to acquire Arcellx for $115 per share plus a contingent value right. Other firms including Wells Fargo, Truist, and Canaccord also shifted to Neutral-equivalent ratings.
• VF Corp. (VFC) was downgraded by JPMorgan to Underweight from Neutral, with the price target lowered to $18 from $19. The downgrade follows a reduction in the firm’s 2027 and 2028 earnings projections, now below consensus.
• Deere (DE) was downgraded by Jefferies to Underperform from Hold, with the price target increased to $550 from $475. The firm expects the agricultural cycle to bottom this year, but believes a rebound depends on higher U.S. farm incomes and stronger crop prices.

Top 5 New Analyst Coverages

• York Space Systems (YSS) was initiated by Citi with a Buy rating and a $37 price target. The firm describes the stock as a high-risk, high-reward opportunity in the growing space sector. Multiple other firms, including Canaccord, JPMorgan, Wells Fargo, Baird, Goldman Sachs, Jefferies, Raymond James, and Needham, also began coverage with Buy-equivalent ratings, while Truist started with a Hold.
• Public Policy Holding Co (PPHC) received an Outperform rating and a $16 price target from Oppenheimer. The company is expanding into state and international lobbying and is developing a strategic communications division. Canaccord also initiated coverage with a Buy rating.
• PicPay (PICS) was started at Buy by Citi, with a $28 price target, suggesting an 85% potential upside. The firm anticipates strong earnings growth from the company’s credit-related business. Mizuho and RBC Capital also initiated coverage with Buy-equivalent ratings.
• Ethos (LIFE) was initiated by JPMorgan with an Overweight rating and a $13 price target. The firm sees significant growth potential for Ethos, particularly through its agency channel. Additional Buy-equivalent initiations came from Citi, Goldman Sachs, BofA, Baird, Citizens, William Blair, and Barclays.
• Bob's Discount Furniture (BOBS) was initiated at Buy by DA Davidson, with a $26 price target. The analysts believe the company is well-positioned in a large, fragmented market that is poised for recovery.