Analysts have upgraded Aurora Cannabis (ACB) and Tesla (TSLA), driven by positive growth expectations and strategic initiatives. Conversely, United Parcel Service (UPS) and Palantir Technologies (PLTR) faced downgrades due to market challenges and valuation concerns. These actions reflect careful evaluations of each company’s potential in the current economic climate.
Upgrades
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Aurora Cannabis (ACB): Upgrade from Hold to Buy by Henrik Alex. The analyst cites strong growth in high-margin medical cannabis sales and an optimistic outlook for the upcoming quarters as key factors for the upgrade.
“With Aurora Cannabis increasingly focused on the high-margin Medical Cannabis segment… strong margins are expected to result in record Adjusted EBITDA and a return to positive free cash flow.”
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Tesla, Inc. (TSLA): Upgrade by Bashar Issa. The analyst’s upgrade is based on confidence in Tesla’s ability to leverage strategic growth opportunities, particularly in its software subscription services and energy solutions.
“Tesla is in the best position among its peers to capture the growth potential… The EV market’s growth will do the heavy lifting for Elon to achieve his EBITDA milestones.”
Downgrades
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United Parcel Service, Inc. (UPS): Downgrade to Hold by Dhierin Bechai. The downgrade reflects ongoing market and operational challenges that UPS is facing, including declining revenues and international trade pains, which have hampered its growth prospects.
“The company is managing the best it can but results such as the acquisition of the healthcare business are not expected to see positive impacts until 2026 while the overall trade environment remains unpredictable.”
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Palantir Technologies Inc. (PLTR): Downgrade to Hold by The Alpha Analyst. Despite robust quarterly results, the analyst points to stretched valuations and declining cash flow yields as key reasons for a more cautious outlook.
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“The biggest area of caution for me is the fact that the adjusted free cash flow margins have actually declined… showing cash generation is stalling despite high growth numbers.”