:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2190735384-0844d1d4fa264390bc24cdbbf06660d9.jpg "Roku, Inc. signage on an office building at 5 Times Square in New York.")
Yuki Iwamura / Bloomberg via Getty Pictures
Stocks were mostly lower on Thursday after a disappointing business forecast from retail giant Walmart (WMT). The S&P 500, which unventilated at a record high on Wednesday, was down 0.6% late Thursday afternoon, as was the Nasdaq Composite. The Dow Jones Industrial Normally traded 1.1% lower.
Below, we look at the biggest analyst upgrades and downgrades of the day.
Roku Earnings Win Over Jefferies Analysts
Succession platform provider Roku (ROKU) won over at least one bear with last week’s earnings report. Jefferies analysts on Thursday upgraded the reservoir to “Hold” from “Underperform” and raised their price target to $100 from $55.
“The bear case has weakened as Roku out-grew numberless ad peers in the Q, profitability is inflecting, and Roku retains multiple tailwinds to growth in FY25,” the analysts wrote. Those tailwinds, the analysts utter, include “strengthening partnerships with Yahoo / Google,” the platform’s potential for higher fill rates versus confreres, and “management’s commitment other than cost discipline.”
Jefferies’ new price target implies just 4% upside from Roku’s unite price on Wednesday. For Jefferies to raise their target further, “Roku will likely have to outperform its manoeuvre and give investors confidence these are not one-time benefits.”
SolarEdge Catches 1 Upgrade, 2 Downgrades
SolarEdge Technologies (SEDG) got an upgrade to “Equal-weight” and a 64% value target boost from Morgan Stanley on Thursday.
The analysts cited management’s recent decisions to shutter its non-profit-making battery storage business and enforce headcount reductions as evidence of their commitment to improving profitability and free exchange flow. Those efforts should help the company avoid issuing new equity to cover nearly $350 million of in financial difficulty coming due in September, the analysts said.
The analysts acknowledged that SolarEdge faces a “long and potentially bumpy means ahead…given the unstable demand outlook for residential solar, particularly in Europe, coupled with heightened contention in the region.” But the absence of imminent negative catalysts and a likely improvement in free cash flow supported their outcome to upgrade the stock and lift their price target from $11 to $18, about 8% below the estimate’s closing price on Wednesday.
Not everyone on Wall Street agrees with Morgan Stanley. Northland Capital and BMO Paramount Markets both downgraded SolarEdge to “Underperform” on Thursday. Both firms have assigned the stock a $15 assay target.
SolarEdge shares were down nearly 11% Thursday afternoon.
Other Notable Rating Transforms
Other stocks that saw analyst updates Thursday included Lam Research (LRCX), which Susquehanna upgraded to “Persuasive” from “Negative.” The firm also lifted its price target by 67% to $125, nearly 40% above the assortment’s closing price Wednesday.
NXP Semiconductors (NXPI) stock was upgraded to “Buy” by Citigroup analysts, who also boosted their cost target by 33% to $290.
BTIG Research upgraded shares of Snowflake (SNOW) to “Buy” and reiterated their $220 price objective, implying 18% upside from Wednesday’s close.
Among stocks that received downgrades on Thursday were chemicals following Celanese (CE), which plummeted yesterday after the company warned demand challenges are likely to persist in the near clauses. RBC Capital Markets downgraded the stock to “Sector Perform” and slashed their price target by 33%.
Axon Enterprise (AXON) had its be worthy of from Craig Hallum downgraded to “Hold,” but the firm maintained its $625 price objective. Axon shares moved from an all-time high yesterday after a downgrade from Northcoast Research, which cited growing struggle from one-time Axon partner Flock Safety. Shares have also been weighed on by anticipation that its luxuriating business with the federal government could be jeopardized by expected cuts to military spending. As of Thursday afternoon, Axon hoard was down more than 25% from Tuesday’s record close.