Wall Street Buzz: Top Buy and Sell Calls of the Week (March 10-14)
The past week saw Wall Street analysts making significant moves on some high-profile stocks, with upgrades and downgrades that could signal shifts in market sentiment. This summary breaks down the top 5 Buy calls and the top 5 Sell calls from the week, providing insights into the reasoning behind these analyst decisions and what they might mean for investors.
Top 5 Buy Calls: What Analysts Are Bullish About
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Microsoft (MSFT): Best Positioned for a Slowing Consumer Economy
DA Davidson upgraded Microsoft to a "Buy" rating, raising its price target to $450 from $425. The firm highlighted Microsoft’s shift to a more rational capital expenditure strategy and its strong positioning as the "best equipped" among the "Magnificent Six" tech giants. Despite being the worst performer in the group over the past six months, DA Davidson believes Microsoft’s stock now reflects the challenges of its previous capex increases, with the company guiding toward flat sequential capex in the near term. -
Airbnb (ABNB): Lodging Share Gains and Experiences Growth
Jefferies upgraded Airbnb to "Buy" with a price target of $185, up from $165, citing the company’s growing share in the lodging market and its unique position to capitalize on the adoption of experiences. The firm believes Airbnb’s core lodging business alone justifies its current valuation, with potential upside from its "take rate" improvements, particularly from the launch of sponsored listings. -
Chipotle (CMG): Attractive Buying Opportunity
Loop Capital upgraded Chipotle to "Buy" with a price target of $65, up from $58, noting that the stock has pulled back nearly 10% since its last report. The firm sees an attractive buying opportunity, as comparable sales have continued to beat expectations despite unfavorable weather conditions. Chipotle could see 7-8% upside to its 2025 EPS estimates if this momentum continues. -
UPS (UPS): Strategic Focus on High-Margin Growth
Truist initiated coverage of UPS with a "Buy" rating and a $140 price target, citing the company’s strategic focus on high-margin growth areas such as small and medium-sized businesses and healthcare logistics. The firm also believes UPS is well-positioned to limit competition from Amazon, given its retail footprint and the scale of its Express business. - FedEx (FDX): Efficiency and Cash Flow Growth
Truist also initiated coverage of FedEx with a "Buy" rating and a $305 price target, highlighting the company’s efforts to integrate its Ground and Express networks for better efficiency and margins. With lower capital expenditure requirements going forward, FedEx is expected to generate higher levels of free cash flow.
Top 5 Sell Calls: What Analysts Are Cautious About
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UiPath (PATH): Weak Outlook and Macro Pressure
Bank of America (BofA) downgraded UiPath to "Underperform" with a price target of $10, down from $18, following a disappointing FY26 outlook. The firm noted broad-based macro pressure, particularly in the Federal vertical, and sees few catalysts for the stock even at current levels. -
Emerson (EMR): Soft Oil and Gas Capex Outlook
Barclays downgraded Emerson to "Underweight" with a $110 price target, down from $135, citing the company’s high exposure to the oil and gas sector, where capital expenditure is expected to remain soft for the rest of the decade. The firm believes Emerson’s recent margin expansion is unsustainable and that consensus estimates remain overly optimistic. -
Sutro Biopharma (STRO): Deprioritization of Luvelta
BofA downgraded Sutro Biopharma to "Underperform" with a $1 price target, down from $11, after the company announced it would deprioritize the development of its key drug candidate, luvelta. The firm removed all value for luvelta from its model, as the drug was the primary driver of its prior Buy thesis. -
Vivid Seats (SEAT): Weakening Live Events Market
BofA also downgraded Vivid Seats to "Underperform" with a $2.60 price target, down from $6.25, citing a tonal shift in management’s 2025 outlook for live events. The firm noted persistent competition and a trend of negative growth in the industry over the past six weeks, with no expectation of relief from competitive pressures in 2025. - Moelis (MC): High Earnings Beta in a Risk-Off Environment
Morgan Stanley double downgraded Moelis to "Underweight" from "Overweight" with a $70 price target, down from $100. The firm cited the company’s high earnings beta and the lower probability of a "bull case" scenario in a risk-off environment. Despite Moelis stock already underperforming its peers, Morgan Stanley expects further relative underperformance.
Key Themes and Takeaways
The week’s analyst calls highlight a mix of optimism and caution across different sectors. On the Buy side, there is a focus on companies with strong positioning in their respective industries, such as Microsoft’s leadership in tech and UPS and FedEx’s logistical advantages. Airbnb and Chipotle, meanwhile, are seen as beneficiaries of consumer trends and operational efficiency. On the Sell side, weaker outlooks and sector-specific challenges dominate, particularly in tech, energy, and live events.
Investment Implications
Investors should take note of these analyst calls as they reflect broader market trends and potential risks. The Buy calls suggest opportunities in resilient sectors like technology, logistics, and consumer discretionary, while the Sell calls highlight areas where macroeconomic headwinds and company-specific challenges may weigh on performance. However, it’s important to remember that analyst sentiment is just one factor to consider in making investment decisions.
Conclusion
The past week has seen significant moves from Wall Street analysts, with upgrades for companies like Microsoft, Airbnb, and UPS signaling confidence in their growth prospects, and downgrades for UiPath, Emerson, and others reflecting caution amid challenging market conditions. As always, investors should approach these calls with a critical eye, considering both the reasoning behind the upgrades and the risks highlighted in the downgrades.
