AMD receives upgrade, Arm receives downgrade: Leading Wall Street analyst makes predictions

Today's Key Analyst Actions on Wall Street

Stay updated with the most significant analyst recommendations and market-moving research from across Wall Street. Below is a summary of the latest upgrades, downgrades, and new coverage initiations compiled for investors.

Top 5 Analyst Upgrades

• AMD (AMD) received an upgrade from KeyBanc to Overweight, previously Sector Weight, with a new price target of $270. The firm anticipates that robust demand for MI355 and the supply of MI455 will drive AI-related revenue for AMD to reach $14–15 billion this year.
• Intel (INTC) was upgraded by KeyBanc to Overweight from Sector Weight, setting a $60 price target. Analysts expect strong demand from hyperscalers in the data center segment to significantly boost Intel’s AI and data center revenues this year.
• HP Enterprise (HPE) was raised to Buy from Neutral by Goldman Sachs, with a price target of $31, following a change in analyst coverage. The firm points to the Juniper merger as strengthening HPE’s position as the second-largest player in enterprise and campus networking, while also expanding its presence in data center networking.
• MasterCard (MA) saw Compass Point lift its rating to Buy from Neutral, increasing the price target to $735 from $620. The firm prefers payment networks over other payment companies as 2026 approaches.
• Colgate-Palmolive (CL) was upgraded by Wells Fargo to Equal Weight from Underweight, with the price target raised to $86 from $77. The firm believes the current share price offers a more balanced risk/reward profile, as previous concerns about sales growth and valuation have largely been addressed.

Top 5 Analyst Downgrades

• PayPal (PYPL) was downgraded by Daiwa to Neutral from Outperform, with a $61 price target. The firm expects the stock’s valuation to remain subdued until there is improvement in branded checkout payment volume growth.
• Adobe (ADBE) was lowered to Perform from Outperform by Oppenheimer. The firm cites a challenging environment during the AI transition, slowing revenue growth, inconsistent product cycles, and tepid investor interest as factors likely to limit near-term upside.
• Five Below (FIVE) was cut to Hold from Buy by Jefferies, with the price target reduced to $210 from $215. Jefferies notes that the company’s valuation is now well above its three-year average, suggesting potential for multiple compression as comparable sales growth normalizes.
• HP Inc. (HPQ) was downgraded to Sell from Hold by Goldman Sachs, setting a $21 price target after a change in analyst coverage. The firm warns that consensus expectations for Personal Systems growth in FY26 may be overly optimistic, especially after a stronger-than-expected FY25 and possible demand impacts from higher pricing.
• Arm (ARM) was downgraded by BofA to Neutral from Buy, with a $120 price target. The decision was based on slowing revenue from royalties and licensing, as well as increased reliance on SoftBank (SFTBY) into 2026.

Top 5 New Analyst Coverages

• Disney (DIS) was initiated with an Accumulate rating and a $130 price target by Phillip Securities. The firm highlights Disney’s unmatched intellectual property as a key driver of strong consumer engagement across its platforms.
• Reddit (RDDT) received an Outperform rating and a $320 price target from Evercore ISI. The firm believes the valuation is robust yet justified, given expectations for a three-year revenue CAGR of 30–40% and EBITDA CAGR of 40–50%.
• NetApp (NTAP) was started at Buy by Goldman Sachs, with a $128 price target. While the overall external storage market is projected to grow modestly in 2025, the firm expects NetApp to maintain its leadership in the all-flash storage segment.
• First Solar (FSLR) was initiated at Market Perform by Raymond James, with no price target. The firm notes that while First Solar offers a relatively attractive risk/reward profile, much of its growth outlook is already reflected in the share price, as it is a consensus long among sell-side analysts. Raymond James also began coverage of SolarEdge (SEDG) with a Market Perform rating.
• Enphase Energy (ENPH) saw Raymond James resume coverage with a Market Perform rating. The firm describes Enphase as a high-quality business, but notes that its industry is highly sensitive to external demand factors.