Expedia (EXPE) has seen an upgrade, with analysts optimistic about its growth prospects relative to peers. In the technology sphere, Tesla (TSLA) has been upgraded as analysts project significant future growth driven by new ventures. Conversely, Albemarle (ALB) and ZIM Integrated Shipping Services (ZIM) have faced downgrades due to emerging industry risks and declining market conditions.
Upgrades
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Expedia Group (EXPE): Upgrade Neutral to Buy by Gary Alexander. The analyst points to Expedia’s closing of the bookings growth gap with competitors like Booking Holdings and Airbnb, alongside the strength of its One Key rewards program as catalysts for continued upward momentum.
“While we think there is still a macro overhang over the travel industry, we think this is more than priced into Expedia’s cheap multiples, and I’m raising my rating on Expedia to a buy following the upward spike.”
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Tesla (TSLA): Upgrade Hold to Buy by The Techie. Despite concerns over valuation, the analyst expects Tesla’s diversification into robotics and AI, particularly through the Optimus project, to serve as a major growth catalyst.
“Tesla remains a high-conviction long-term investment in my book… I strongly believe that’s because the market is forward-looking, and what you’re paying for isn’t Tesla today, but what it is building itself into. I think what will ultimately push Tesla to a point where it can defend its valuation is Optimus and its aggressive push into robotics.”
Downgrades
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Albemarle (ALB): Downgrade Buy to Sell by Trapping Value. The analyst cites an excessive supply within the lithium market and potential vulnerability to price corrections as factors underpinning a bearish outlook.
“While not in bubble territory, it is extremely vulnerable if the anticipated supply shock materializes. One other fact that points to this is that ALB is expected to make losses in 2025, despite this price improvement in the underlying commodity. The P/E multiple (granted that it is not the best metric), is also extremely high.”
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ZIM Integrated Shipping Services (ZIM): Downgrade Buy to Sell by Invest Heroes. The downgrade is fueled by declining freight rates and an expectation of a weaker fourth quarter despite a temporary boost in ZIM’s rates.
“ZIM’s strong quarterly surprise looks largely one-off, while global freight rates keep trending lower and management itself warns of a weaker Q4. With the stock already up 50% since our last call… we see this as a good moment to take profits.”