Recent analyst actions include notable rating changes for Apple Inc. (NASDAQ:AAPL), Palo Alto Networks (NASDAQ:PANW), Robinhood Markets, Inc. (NASDAQ:HOOD), and Lowe’s Companies (NYSE:LOW). Seeking Alpha analysts placed upgrades on both AAPL and PANW while also tagging shares of HOOD and LOW with downgrades.
Upgrades
Apple Inc. (NASDAQ:AAPL): Upgrade Sell to Buy by Agar Capital. The analyst cites Apple’s resilience, renewed momentum, and strong demand for the iPhone 17 lineup, especially the premium models and new Air variant, as key factors for the rating change.
- “I have always been a fan of the brand, both as a consumer of the products and services that it offers and as a long-term investor, but in July I was convinced that the stock would have to stay at a plateau, at least for a period. I had worries regarding the overpriced assessment of the stock and the hints of deceleration and lack of visibility on the AI issue it was suffering from, which made me feel upset. Apple has been a lot more durable than I expected for the last two months, so at this point, I am changing my decision.”
Palo Alto Networks (NASDAQ:PANW): Upgrade to Buy by Gary Alexander. The analyst’s optimism stems from the company’s accelerating growth metrics and the strategic benefits of its CyberArk acquisition, which extends PANW’s reach into the rapidly growing identity security arena.
- “During Q4, many of the deals our teams had been working on during our fiscal year came to fruition. We saw robust activity across the board. In Q4, our bookings growth turned a corner and was the highest we’ve seen in 2.5 years. This growth is driven by deals across our platforms and also as a result of strong renewals and upsells across our existing portfolio. … I’m optimistic about Palo Alto Networks’ potential, especially after the company’s standalone acceleration in its most recent quarter.”
Downgrades
Robinhood Markets, Inc. (NASDAQ:HOOD): Downgrade Buy to Hold by Mike Zaccardi, CFA, CMT. Despite robust Q2 results, record Gold subscribers, and strong trading activity, the analyst believes the stock’s 227% YTD rally has pushed valuation ahead of fundamentals.
- “Today, I’m downgrading HOOD from a buy to a hold. I am lifting my price target to bring it more in line with peers, while the technicals point to potential downside… The stock has been very strong since the April low, but the valuation is now in question, while the technicals point to a potential pullback ahead of earnings.”
Lowe’s Companies, Inc. (NYSE:LOW): Downgrade Hold to Sell by Seeking Profits. The analyst points to the stock’s premium valuation above 20x earnings, paused buyback program until at least 2027, and increased exposure to cyclical new construction through recent acquisitions as creating significant downside risk.
- “Back in June, I was targeting $12.00-$12.35 in EPS. With some downside risks removed given a more accommodative Fed, I now see $12.20-$12.40 in EPS. That leaves shares over 20.5x earnings, which is relatively expensive. Indeed, shares are now trading at a meaningful premium to both peers and its own history… We are likely two years away from buybacks as Lowe’s shifts to a more aggressive M&A policy, which will leave it susceptible to a more prolonged downturn in new residential construction. With shares over 20x, there is little margin for error, and further economic slowing can cause shares to underperform. I struggle to see LOW’s worth more than 17-18x given the lack of buybacks or no more than $220. With meaningful downside, I would be a seller of LOW.”