Recent analyst actions show a mix of upgrades and downgrades, with Upstart (UPST) and Workday (WDAY) receiving favorable analyst reviews, with potential for growth and improved profitability. On the other hand, Meta (META) and e.l.f. Beauty (ELF) are facing downgrades due to various challenges, from decelerating growth to execution risks.
Upgrades
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Upstart Holdings (UPST): Upgrade Sell to Buy by Julian Lin. The analyst cites the current stock price decline as a strategic growth opportunity for investors, despite concerns over long-term business model quality.
“I am upgrading the stock to a ‘Buy’ rating. The recent slide in the stock price has made the stock quite buyable as it is trading at a low multiple relative to forward growth rates.”
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Workday (WDAY): Upgrade to Hold by Vladimir Dimitrov, CFA. Improved signs of profitability and reasonable stock pricing are key factors in the analyst’s assessment, despite historic challenges.
“Following this catastrophic share price performance, it now seems that more and more market participants are flocking into WDAY stock as extreme valuations within the technology sector prompt them to look for value in more reasonably priced areas of the industry.”
Downgrades
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Meta Platforms (META): Downgrade Strong Buy to Hold by Weebler Finance. The analyst identifies concerns over monetization ceilings and slowing growth due to a saturated user base.
“Given the broader dynamics at play here, I see Meta’s recent price plunge as largely a rational market re-pricing rather than a panic-based sell-off. Meta’s decelerating growth trend on its topline, its saturated base, which only allows for increased monetization per user as the primary growth lever, its uncertain ROI on its heavy AI infrastructure investments, and its fair value, all suggest to me collectively that there isn’t much of a value opportunity with Meta at its current price..”
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e.l.f. Beauty (ELF): Downgrade Buy to Hold by Amrita Roy. The downgrade follows missed revenue estimates and weaker forward guidance, raising concerns about short-term execution risks.
“While short-term investors can use the 40%+ drop as an opportunity for a trade … I won’t consider this a long-term investable opportunity at the moment, as risks to further downward revisions remain intact.”