| | | Notable analyst calls this week: Uber, Twilio and EQT among top picks
May 10, 2025 9:25 AM ET
By: Tiyashi Datta, SA News Editor
The S&P500 ( SP500) closed in the red, as investors assessed new earnings reports and a new trade agreement inked between the U.S. and the United Kingdom.
For the week, both Nasdaq ( COMP:IND) and Dow ( DJI) rose 0.4%.
Wall Street had a slew of upgrades and downgrades from analysts. Here are some of the major calls for the week:
Uber loses bull rating from Wedbush
Wedbush Securities lowered its rating on Uber Technologies (NYSE: UBER) to Neutral from Outperform after factoring in the share price appreciation over the last few years as the business model recovered post-pandemic.
"We view the risk/reward as more balanced versus prior periods due to the cyclical nature of the business and limited potential for further beats versus investor expectations," highlighted analyst Scott Devitt.
Wedbush assigned a 12-month price target of $85 to Uber.
Microchip Technology upgraded after strong quarter
BofA upgraded ratings on Microchip Technology (NASDAQ: MCHP) to Neutral from Underperform after the semiconductor company reported better-than-expected quarterly results and guidance.
The brokerage upped his price target to $56 from $44, saying that even a “modest” sales rebound could result in “outsized” earnings growth.
“The return of well-regarded prior CEO Steve Sanghi has greatly enhanced the level of restructuring urgency and customer/product focus at Microchip, helped by recovery in key industrial (aerospace/defense) markets,” analyst Vivek Arya wrote.
EQT upgraded by UBS on better natural gas outlook
EQT (NYSE: EQT) was upgraded by UBS to Buy from Neutral, driven by the natural gas provider's "visibly improved operational performance" following the Equitrans acquisition and a continued positive natural gas outlook through 2026.
UBS analyst Josh Silverstein, who raised PT to $64 from $54, said the company looks positioned to capture rising upside prices while minimizing downside risk.
He noted that EQT's positive skew to rising natural gas prices, ramping 2026 shareholder returns to 57% of free cash flow, and potential M&A and power supply contracting catalysts from improving local power generation demand in 2027 and beyond are additional drivers which currently are not reflected in the stock price.
Sea Limited downgraded on balanced risk-reward
Bank of America downgraded Singapore-based Sea Limited (NYSE: SE) to Neutral from Buy, citing a more balanced risk-reward scenario after the stock's recent outperformance.
The research firm noted that SE stock is up 270% since January 2024 on the back of its improving fundamentals. However, they see limited material upside in the near term for the company due to slowing macro.
While still positive about its fundamentals, BofA thinks it may be difficult for Sea to consistently deliver “beat and raise” quarters.
HSBC upgraded Twilio (NYSE: TWLO) to Hold from Neutral, citing “signs of growth” and a “more reasonable” valuation. The brokerage raised PT to $99 from $77.
Hecla Mining (NYSE: HL) received a downgrade to Market Perform from Outperform with a $5.50 price target, cut from $7.50, at BMO Capital, which cited uncertainty surrounding the ramp-up at the Keno Hill mine in Canada's Yukon territory and visibility on long-term growth.
The Mosaic Co. (NYSE: MOS) was upgraded to Outperform from Sector Perform by RBC Capital Markets. They said tightening phosphate markets and operational tailwinds position the fertilizer giant for renewed earnings momentum. |
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