Stock Upgrades and Downgrades Today

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•  21 Jan 2025
 

Today brings a mix of stock upgrades and downgrades, reflecting the dynamic shifts in market sentiment and individual company outlooks. These changes to make informed decisions in such a fast-moving environment. As we head into the trading day on Tuesday, there are a few notable stock moves that investors should be aware of, especially those that could influence the broader market sentiment in the near term.

Apple Inc. $AAPL has faced a downgrade from JPMorgan, with analyst Samik Chatterjee outlining a challenging road ahead for the tech giant. Apple’s AI advances may be notable, but Chatterjee highlights the significant hurdles the company faces, particularly in the Chinese market and currency struggles. The analyst suggests that despite Apple's strides in artificial intelligence, the slow adoption of AI in China and other headwinds could result in a slowdown in its growth. This is a pivotal moment for Apple investors, as the company has long been a key driver of market performance, and any downgrade could signal potential turbulence. With the tech stock’s historical resilience, however, some might view this as a buying opportunity if they believe the company can navigate through these challenges. But caution is advised as analysts seem to expect more short-term volatility.

Affirm Holdings $AFRM received a downgrade today. Susquehanna lowered the stock to Neutral, citing concerns over valuation and GMV (gross merchandise volume) issues. After its recent surge, the stock’s current valuation no longer seems justified, and the company’s long-term growth prospects may be more constrained than initially thought. Investors may want to reassess their positions here, especially with Affirm facing mounting pressure in an increasingly competitive space.

On the other side, there’s some optimism for stocks like Delta Air Lines $DAL, which continues to impress even after its remarkable 71% surge in the past year. Some analysts, including those from Wall Street, believe there’s still room for this stock to grow. With the travel industry bouncing back and Delta continuing to capitalize on increased demand, investors might view this as a stock to hold for the near future. As for Qorvo $QRVO, an upgrade from Morgan Stanley following an activist investor’s stake is making waves today. This has led to a positive uptick in the stock price, signaling that investor sentiment is turning more favorable. Qorvo, a semiconductor and radio frequency chipmaker, may be in a strong position to benefit from the growing demand in the semiconductor space, and this upgrade comes at a time when many investors are focused on tech’s role in the broader market.

Meanwhile, stocks like Teradyne $TER have taken a hit today, with a downgrade from Morgan Stanley attributed to market share losses. This is a cautionary tale for investors in the semiconductor industry, where competition is fierce and the ability to maintain market dominance is critical. For those holding Teradyne, this downgrade could be a sign to reevaluate your position in the company. Similarly, Home Bancshares $HOMB has been downgraded to Hold, despite a positive earnings outlook. This may reflect broader market concerns about financial stocks in the current environment. While the bank’s earnings prospects are solid, the potential for higher interest rates and other market challenges could weigh on its performance.

For those looking for potential buys, stocks like Equity Lifestyle Properties $ELS, Hamilton Lane $HLNE, and Wix.com $WIX stand out today. Wix.com, in particular, is seeing an upgrade from Raymond James, based on its strong product market fit. As the online platform continues to attract users, the stock could see further growth, driven by its innovation and expansion. Similarly, Hamilton Lane is seeing renewed optimism from Oppenheimer, which has raised its rating to Outperform after a pullback. The firm believes the investment firm is well-positioned to take advantage of market opportunities in the coming quarters.

Investors should also keep an eye on Brinker International $EAT, which is seeing accelerating same-store sales and strengthening margins. Analysts are feeling more confident in Brinker’s ability to maintain its momentum, making it a solid buy for those interested in the restaurant sector.