The S&P500 (SP500) closed in the red on Friday, after the week saw major headlines including President Trump announcing to put a 50% tariff on copper imports after saying no to August 1 deadline extension and Nvidia becoming the first company to achieve $4T in market cap.
For the week, Nasdaq (COMP:IND) rose over 1%, while Dow (DJI) advanced 0.6%.
Wall Street had a slew of upgrades and downgrades from analysts. Here are some of the major calls for the week:
Microsoft gets bullish rating on AI opportunity
Oppenheimer upgraded Microsoft (NASDAQ:MSFT) to Outperform from Perform and set a $600 price target, spotlighting the U.S. tech giant’s AI opportunity.
The analysts said that sustaining robust growth in its AI business is not fully in the stock, nor is a reacceleration in Azure’s growth in fiscal 2026.
“In our view, investors’ attention on the ramp of Microsoft’s AI revenue stream will only increase as Azure’s growth remains strong, offering not only valuation support, but also upside potential as this revenue stream continues scaling fast and investors embrace Microsoft as one of the long-term AI winners in software,” said analyst Brian Schwartz.
Tesla downgraded due to changes in EV tax credits and incentives
William Blair downgraded Tesla (NASDAQ:TSLA) to Market Perform from Outperform, as analyst Jed Dorsheimer points to the elimination of the $7,500 tax credit for the purchase or lease of a new electric vehicle in the Republican tax and spending bill as a clear negative for the company.
“While the $7,500 tax credit is likely to affect demand, the combination of a demand headwind and over $2 billion in profit from regulatory credits at risk may be too much for investors to bear,” advised Dorsheimer.
However, Dorsheimer also noted that investors should weigh the impact of the bill’s cut on fines that automakers would have faced under Corporate Average Fuel Economy standards.
Melius upgrades Caterpillar on AI demand
Melius Research upgraded Caterpillar (NYSE:CAT) to Buy, as analyst Rob Wertheimer highlighted stronger-than-expected momentum in the company’s Engines & Transportation division, driven by surging demand from data center expansions tied to AI infrastructure.
Wertheimer added $6 billion to his 2027 revenue forecast for the segment and set a Street-high price target of $500 a share for Caterpillar.
While the brokerage doesn’t anticipate price increases on par with those seen at GE Vernova, it expects pricing to contribute meaningfully to growth over the next few years.
Illumina in focus after Scotiabank, Citi downgrade
Scotiabank cut rating on Illumina (NASDAQ:ILMN) to Sector Perform from Sector Outperform, citing concerns over the company’s 2026 outlook.
Analyst Sung Ji Nam cited headwinds ILMN is facing in China, where its gene sequencers were banned in March, and Illumina’s relatively high exposure to the U.S. Academic & Government segment.
Similarly, Citi downgraded its stock to Sell from Neutral, arguing that the firm’s bearish views don’t support the recent rally in the gene sequencing company’s shares.
Meanwhile Citi analyst Patrick Donnelly upgraded contract research organization Charles River Laboratories (NYSE:CRL) and diagnostics test maker Hologic (NASDAQ:HOLX) to Buy from Neutral.
Sung Ji Nam also upgraded Illumina’s peers in the life sciences industry, namely Danaher (NYSE:DHR) and Thermo Fisher Scientific (NYSE:TMO), to Sector Outperform from Sector Perform. The analyst, however, trimmed PT on Thermo Fisher to $590 from $605, citing a disproportionate impact for the company from the discussions surrounding the U.S. healthcare and trade policy.
TD Cowen, Goldman cuts rating for Enphase Energy
TD Cowen downgraded Enphase Energy (NASDAQ:ENPH) to Hold from Buy with a $45 PT, slashed from $58, citing the cancelation of the residential solar credit.
Goldman Sachs also downgraded Enphase to Sell from Buy, slashing price target to $32 from $77, noting that “following the recent resi solar tax changes, we believe the company’s outlook beyond 2027 is likely to remain under pressure.”
“We see demand for inverters to begin to deteriorate in [the fourth quarter of 2025], given distributor inventory and building permit timing, though there may be a pull-forward of demand to lock in the tax credit by the end of 2025,” TD Cowen’s Jeff Osborne wrote.
Piper Sandler downgraded CrowdStrike (NASDAQ:CRWD) to Neutral from Overweight, saying that it does not see a near-term scenario that would meaningfully increase numbers or its terminal multiple. The brokerage kept PT unchanged at $505 on the stock. CFRA also downgraded the stock to Hold from Buy due to its high valuation.
Wedbush analyst led by Alicia Reese upgraded movie theater operators AMC Entertainment (NYSE:AMC) and Cinemark (NYSE:CNK) to Outperform from a Neutral, as both companies stand to benefit from a more “consistent release slate over the next several quarters.”
Deutsche Bank began coverage of Micron Technology (NASDAQ:MU) with Buy and a $150 PT. The analysts said they are constructive on both the cyclical and secular setup facing Micron.
BofA upgraded Warner Music Group (NASDAQ:WMG) to Neutral from Underperform, with analysts led by Jessica Reif Ehrlich saying that the recent cost savings announcement, along with the commercial agreements signed with DSPs, will provide greater visibility and predictability in the subscription streaming business and pave a clear path to healthier earnings growth. WMG has a price target of $33, hiked from $28.