Recent analyst actions include Accenture (ACN) receiving an upgrade as bookings rebound and GenAI demand accelerates, while lululemon (LULU) was upgraded to Hold amid CEO transition hopes despite shaky fundamentals. On the downgrade side, AMD (AMD) faces valuation concerns despite strong AI sentiment, and Netflix (NFLX) continues its slide as analysts argue the stock price must adjust to reality.
Upgrades
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Accenture (ACN): Upgrade Hold to Buy by Redfox Capital Ideas. The analyst upgraded based on a massive bookings rebound, with new bookings up 12% year-over-year to $20.9 billion, and GenAI bookings now exceeding 10% of total bookings.
“Bookings have recovered nicely, the mix has improved, and GenAI bookings are becoming a more tangible growth driver. With valuation still undemanding relative to the market, I believe the risk-reward has turned positive. … ACN still trades near its 10-year low, at a ~10% discount to the S&P 500, but the operating data has clearly shown a solid recovery.”
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lululemon athletica (LULU): Upgrade Sell to Hold by Bay Area Ideas. The analyst sees improved risk/reward due to upcoming CEO transition and aggressive international expansion plans, despite continued fundamental weakness.
“While lululemon’s fundamentals are currently weaker than desired, there are some good reasons for investors to be hopeful. … A CEO transition is not an easy thing per se, and some headwinds like tariffs will be hard to mitigate in the near term. Therefore, a cautious stance right now will likely pay off, and I believe investors should avoid jumping the gun.”
Downgrades
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Advanced Micro Devices (AMD): Downgrade Buy to Hold by Oliver Rodzianko. The analyst cites extreme market valuations and warns that the AI capex cycle is near peak sentiment, suggesting now is the time to trim positions rather than add exposure.
“When I look at AMD, I see a genuinely remarkable company and CEO. But I also see a crowd of market participants that have projected their value onto the stock to the detriment of the equity’s intrinsic valuation being accurately depicted in public markets. … A consensus rating of +23.5% upside in the next 12 months means nothing in the face of an aggregate market valuation that is more than +2 standard deviations above fair value.”
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Netflix (NFLX): Downgrade to Sell by Long Player. The analyst argues that despite earnings and cash flow growth, the current valuation implies unsustainable 30%+ annual growth, with potential for 50% more downside.
“The business is fine. It is the stock price that needs adjusting. Mr. Market is coming out of one of those periods of irrational exuberance that has marked this stock price since it went public. … The latest earnings report continues a growth rate that is expected for a large company like this that is nothing close to that price-earnings ratio.”