2 days ago 3

Reddit initiated, Target downgraded: Wall Street’s top analyst calls

TipRanks

Thu, Apr 17, 2025, 8:00 AM 4 min read

Morgan Stanley upgraded Lockheed Martin (LMT) to Overweight from Equal Weight with a price target of $575, up from $525. Concerns over the trajectory of U.S. defense spending and potential Department of Government Efficiency headwinds have kept defense investors largely on the sidelines, but a number of developments over the past few weeks point to an improving sector backdrop, the firm tells investors in a research note.
Morgan Stanley upgraded Caterpillar (CAT) to Equal Weight from Underweight with a price target of $283, down from $300. To reflect the “dynamic macro backdrop,” the firm adjusted 2025 machinery and construction estimates lower, moved bear cases to reflect a recession, and make key ratings changes reflective of an updated risk/reward analysis, tariff risk and demand conditions.
Mizuho upgraded Cloudflare (NET) to Outperform from Neutral with a price target of $135, down from $140. The firm’s recent channel checks on Cloudflare were more favorable than expected, and included strengthening pipelines, large-deal activity, and growing traction with Workers AI.
Needham upgraded Boston Scientific (BSX) to Buy from Hold with a $113 price target. Needham’s latest electrophysiologist survey shows the threat of pulsed field ablation competition appears less severe than previously anticipated, the firm tells investors in a research note.
Redburn Atlantic upgraded Union Pacific (UNP) to Buy from Neutral with a $259 price target. The company has made “material progress” over the past 18 months, improving service, trimming headcount, and growing volumes, the firm says.

Top 5 Downgrades:

Goldman Sachs downgraded Target (TGT) to Neutral from Buy with a price target of $101, down from $142. The firm cites concerns around seeing a recovery in growth for discretionary categories, more downside risk in earnings than upside given possible sales deleverage and tariff risk, and recent data indicating Target’s sales may be slowing for the downgrade.
Morgan Stanley downgraded General Dynamics (GD) to Equal Weight from Overweight with a price target of $305, down from $315. Morgan Stanley sees General Dynamics as relatively more exposed to tariff headwinds versus its prime peers given its Gulfstream business and higher DOGE risks from its Technologies business.
Wells Fargo downgraded Ecolab (ECL) to Equal Weight from Overweight with a price target of $240, down from $265. The firm expects Ecolab to guide down organic constant currency growth but maintains its earnings outlook from lower-than-expected currency headwinds and “aggressive” cost cutting.
Piper Sandler downgraded Epam Systems (EPAM) to Neutral from Overweight with a price target of $170, down from $251. The firm believes the company’s Q1 results will likely be in-line, but sees greater risk for second half numbers
JPMorgan downgraded U.S. Steel (X) to Neutral from Overweight with a price target of $38, down from $43. The firm views U.S. Steel shares as relatively fairly valued, and says the stock is likely to see a “knee-jerk pullback” when and if and Nippon deal is blocked.