Block receives an upgrade, Duolingo faces a downgrade: Leading analyst picks from Wall Street

Today's Key Wall Street Analyst Actions

Stay informed with a roundup of the most influential analyst ratings and research updates impacting the market today, curated by The Fly.

Top 5 Analyst Upgrades

• Morgan Stanley lifts Block (XYZ) to Overweight from Equal Weight, raising the price target to $93 from $72. The upgrade follows Block’s latest earnings, with the firm highlighting accelerated growth and a larger addressable market due to recent product improvements.
• TD Cowen upgrades Southwest (LUV) to Buy from Hold, increasing the price target to $66 from $50. The analysts anticipate Southwest will boost its guidance in March, and believe upward earnings revisions could propel the stock higher.
• Wolfe Research raises Honeywell (HON) to Outperform from Peer Perform with a $293 target. The firm sees significant value unlocked by Honeywell’s planned aerospace spinoff, estimating $290 per share in sum-of-the-parts value.
• UBS upgrades Palantir (PLTR) to Buy from Neutral and sets a $180 price target. The firm points to attractive valuation after a 35% decline from the stock’s peak, recommending investors take advantage of the pullback.
• Rothschild & Co Redburn upgrades Live Nation (LYV) to Buy from Neutral, raising the price target to $193 from $166. The analysts believe the Department of Justice’s breakup case is weakening and expect a settlement soon.

Top 5 Analyst Downgrades

• Benchmark downgrades Warner Bros. Discovery (WBD) to Hold from Buy and removes its price target after the board accepted Paramount Skydance’s $31 offer (PSKY). Deutsche Bank also cuts Warner Bros. Discovery to Hold from Buy, raising its target to $31 from $29.50.
• Citi lowers Dollar Tree (DLTR) to Neutral from Buy, maintaining a $132 price target. The downgrade is attributed to valuation concerns, as shares have doubled since April 2025.
• Citi cuts Duolingo (DUOL) to Neutral from Buy, reducing the price target to $101 from $270. The firm expects 2026 to be a transitional year as Duolingo focuses on user growth over monetization. Scotiabank, Evercore ISI, Morgan Stanley, and JPMorgan also move Duolingo to Neutral-equivalent ratings.
• GLJ Research downgrades Sunrun (RUN) to Sell from Hold, citing increased concerns after recent results. Jefferies also lowers Sunrun to Hold from Buy, keeping the $22 price target unchanged.
• Morgan Stanley downgrades Synopsys (SNPS) to Equal Weight from Overweight, lowering the price target to $480 from $550. While Q1 revenue met the top end of guidance, the firm notes a slowdown in the company’s electronic design automation growth.

Top 5 Analyst Initiations

• BofA resumes coverage on Costco (COST) with a Buy rating and a $1,185 price target. The firm highlights Costco’s strong appeal to higher-income shoppers and competitive pricing, positioning it as a leader in the current economic environment.
• BofA resumes coverage on Walmart (WMT) with a Buy rating and a $150 price target. Walmart is gaining market share among affluent customers through faster delivery, while also serving value-focused shoppers. The firm expects steady sales and profit growth to drive further positive earnings revisions.
• BofA resumes coverage on Target (TGT) with an Underperform rating and a $103 price target. The analysts believe consensus expectations for ongoing comparable sales growth may be too optimistic and anticipate a gradual earnings recovery.
• Canaccord initiates coverage on Neurogene (NGNE) with a Buy rating and a $200 price target. The firm projects NGN-401 could reach the market by early 2028, with peak global sales of $2.2 billion by 2033.
• Rosenblatt initiates coverage on Palantir (PLTR) with a Buy rating and a $150 price target, describing the company as a uniquely positioned leader in AI software disrupting the market.