Notable analyst calls this week: Southwest Airlines, Regeneron and Nvidia among top picks
May 31, 2025 9:35 AM ET
By: Tiyashi Datta, SA News Editor
The S&P500 ( SP500)closed in the red, after the week witnessed muted inflation data, a court striking down President Trump's April tariffs and earnings reports from firms including Nvidia (NASDAQ: NVDA) and Costco ( COST).
For the week, Nasdaq ( COMP:IND) declined 0.12%, while Dow ( DJI) fell 0.3%.
Wall Street had a slew of upgrades and downgrades from analysts. Here are some of the major calls for the week:
Deutsche Bank gives bullish rating to Southwest Airlines
Southwest Airlines (NYSE: LUV) was upgraded by Deutsche Bank to Buy from Hold, with analyst Michael Linenberg pointing to its refreshed board of directors and Elliott Management as having ushered in a new era of change at the company, which the firm thinks will drive higher shareholder returns.
Buybacks were also highlighted as a potential tailwind for shares. The brokerage also added that Southwest's return on invested capital will significantly improve over the next two years.
Regeneron downgraded on COPD trial data
Wells Fargo downgraded Regeneron (NASDAQ: REGN) to Equal Weight from Overweight, as a Phase 3 trial failure for its antibody therapy itepekimab, developed with Sanofi for a lung disorder known as chronic obstructive pulmonary disease (COPD).
“We think itepekimab’s disappointing data create a big challenge for REGN in the long term,” Wells Fargo analyst Mohit Bansal wrote.
Bansal, who kept a PT of $580 per share, said investors are less excited about the rest of the pipeline.
Salesforce downgraded by RBC on Informatica deal
RBC Capital downgraded Salesforce (NYSE: CRM) to Sector Perform from Outperform and set a $275 PT, citing “execution risk” tied to the planned acquisition of Informatica.
Analyst Rishi Jaluria flagged concerns over the integration of past deals and warned the move could distract from Salesforce’s core operations.
Meanwhile, most analysts were impressed after the company surpassed estimates in its first quarter financial results and guidance. Evercore and Morgan Stanley reiterated their Outperform rating, while Wells Fargo maintained its Equal-weight rating.
BofA cuts rating on SentinelOne after Q1 results
BofA downgraded SentinelOne (NYSE: S) to Neutral from Buy, and cut PT to $21 from $24, after the cybersecurity company reported mixed first-quarter results and guidance.
“The focal point of the last two quarters has been weaker guidance, with growth of 21%, -500bps off Street’s initial FY26 expectations,” Bank of America analyst Tal Liani said, adding that the brokerage sees weaker business trends.
Liani said while the endpoint market is one of the most attractive in cybersecurity, SentinelOne is already benefiting from it, and therefore he believes “the valuation is already reflective of the risks, yet the stock lacks upside catalysts,”
Wall Street praises Nvidia after strong quarter
Nvidia (NASDAQ: NVDA) was in focus after the AI-giant’s stronger-than-expected results and guidance impressed investors and analysts.
Wedbush analyst Dan Ives reiterated his Outperform rating and described the quarterly results as “robust” and the commentary around demand as “very positive,” even when taking China into account.
Morgan Stanley analyst Joseph Moore kept his Overweight rating and upped PT by $10 to $170, while BofA analyst Vivek Arya hiked PT to $180 from $160. Jefferies analyst Blayne Curtis noted that the second-half of the year is “shaping up nicely” for Nvidia, with “likely beat/raises from here.”
Leidos Holdings (NYSE: LDOS) was downgraded to Neutral from Outperform by Baird, citing a tougher outlook for government services providers and a softening bookings environment. Analyst Peter Arment expressed caution regarding the sector's near-term trajectory, warning that headline risks are likely to weigh on sentiment in the coming months.
Wells Fargo upgraded HCA Healthcare (NYSE: HCA) and Tenet Healthcare (NYSE: THC), noting that policy risks related to the hospital sector are receding with the House passage of budget reconciliation legislation.
Deutsche Bank resumed coverage on Ralph Lauren (NYSE: RL) with a Buy in a note titled "Not Your Grandpa's Polo." Analyst Krisztina Katai highlighted that few companies within the DB's coverage fit the description of high-quality with good underlying fundamentals, pricing power, white space opportunity, and limited China sourcing, but the firm thinks Ralph Lauren checks all the boxes. |
