What has Wall Street been buzzing about this week? Here are the top 5 Buy calls and the top 5 Sell calls made by Wall Street's best analysts during the week of April 14-17.
Top 5 Buy Calls:
1. Oppenheimer bullish on Reddit, initiates with an Outperform
Oppenheimer initiated coverage of Reddit (RDDT) with an Outperform rating and $125 price target. Following 49% stock pullback since February 19, the firm believes investors are properly discounting medium-term risks, reliance on Google (GOOGL), difficult Q2 daily average users comparison, weak international engagement, and risk of monetization wall. Oppenheimer believes Reddit will continue driving advertiser demand as it creates products around its highly targeted 1P data and subreddits.
2. Oppenheimer initiates Lyft, Inc. with an Outperform
Oppenheimer initiated coverage of Lyft (LYFT) with an Outperform rating and $15 price target. The firm expects rideshare will continue to challenge the rising cost of car ownership, sustaining double-digit growth for multiple marketplaces. Robotaxi technology's ability to lower fares over time represents further upside, Oppenheimer adds. At 9-turns its reduced 2025 estimates, Lyft would seem to be pricing in the tariff effect. The firm's proprietary survey of 1,000 consumers supports its overall positive view.
3. Peloton Interactive, Inc. upgraded to Buy at Deutsche Bank
Deutsche Bank upgraded Peloton (PTON) to Buy from Hold with a price target of $6.60, down from $8.60. The firm believes the shares have been "unfairly punished" since the fiscal Q2 report, down over 30%. With over 90% of gross profit coming from the Peloton subscription, "industry-leading" churn for the subscription, and likely counter-cyclicality given both the convenience and relative affordability to many gyms, Peloton's earnings growth should be more defensive, it tells investors in a research note. As such, Deutsche expects the shares to outperform over the next 12 months.
4. Atlassian Corporation PLC upgraded to Outperform at Baird
Baird upgraded Atlassian (TEAM) to Outperform from Neutral with a price target of $255, down from $320. The firm says that with a "powerful business model, strong products, and unmatched partner channel," Atlassian has "long been the envy of growth software companies." Baird left Team'25 last week "incrementally positive" on the platform positioning. The firm cites Atlassian's platform opportunity, positive receptivity to its generative artificial intelligence strategy, and a valuation at the lower end of the stock's historical range for the upgrade. It views current levels as attractive for longer-duration investors.
5. HubSpot upgraded to Buy at UBS
UBS upgraded HubSpot (HUBS) to Buy from Neutral with a price target of $675, down from $775. The firm cites valuation for the upgrade with the shares down 35% since mid-February. The setup is attractive for a "high-quality software company" who has a more conservative fiscal 2025 guidance and could be a "snapback long if macro headwinds prove to be overblown," UBS tells investors in a research note. The firm believes HubSpot's company-specific growth tailwinds are underappreciated and could help to curb downside pressures in the near-term and support durable growth in the long-term.
Top 5 Sell Calls:
1. PayPal downgraded to Sell at Seaport on lack of conviction in mid-term targets
Seaport Research downgraded PayPal (PYPL) to Sell from Neutral with a $49 price target. The firm thinks it is going to be a struggle for the company to meet the medium-term guidance it provided at its investor day - particularly, accelerating to 8%-10% growth in Checkout TPV - if discretionary spend starts to slow as the firm expects, Seaport Research tells investors. The firm is revising FY25 and FY26 revenue and EPS forecasts down and its revised numbers are below the consensus.
2. Wells Fargo downgrades "no longer defensive" Comcast to Underweight
Wells Fargo downgraded Comcast (CMCSA) to Underweight from Equal Weight with a price target of $31, down from $37. The firm says Comcast is being pulled into a convergence investment cycle with higher mobile costs to re-accelerate broadband. Wells trims C&P, while NBCU also faces challenges. Its 2025/2026 EBITDA is -4%/-5% vs Street. Comcast is no longer defensive, the firm adds.
3. Enphase Energy downgraded to Sell at Citi
Citi downgraded Enphase Energy (ENPH) to Sell from Neutral with a $47 price target. While near-term Street estimates have aligned with Citi's outlook, Enphase has a lack of clear catalysts for meaningful growth this year or next, the firm tells investors in a research note. In addition, Citi sees several catalysts that could negatively impact the company's long-term outlook, including tariffs on storage, potential delays in launching the new storage product due to tariffs, and lower natural gas prices keeping utility price increases in check. The firm views the potential for elimination of investment tax credit bonus adders as the biggest risk for Enphase.
4. FISERV INC downgraded to Sell at Redburn Atlantic
Redburn Atlantic downgraded Fiserv (FI) to Sell from Neutral with a price target of $150, down from $220. The firm has concerns that a cyclical slowdown will unveil structural challenges around the durability of the company's growth. Most of Fiserv's growth is driven by smaller, discretionary-orientated merchants, Redburn tells investors in a research note. While larger merchants generate high payment volume, their lower take rates mean they contribute far less to net revenue growth, the firm points out.
5. Coty double downgraded to Underperform at BofA on slowing momentum
BofA double downgraded Coty (COTY) to Underperform from Buy with a price target of $4.50, down from $9. While Coty has been able to capitalize on strength in Prestige fragrance for the past several years, the firm has tempered expectations due to global market share declines and concerns about consumer spending weakness, adding that it sees a lower valuation for both the Prestige and Consumer Beauty businesses due to slowing growth.
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