Broadcom and QuantumScape received notable upgrades based on AI growth potential and technical milestones, respectively. Meanwhile, JPMorgan Chase saw a downgrade despite strong performance, with analysts citing fair valuation after significant share price appreciation. United Parcel Service also faced a downgrade amid persistent economic headwinds and concerns about dividend sustainability, highlighting the cautious approach some analysts are taking toward companies facing macroeconomic challenges.
Upgrades
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Broadcom Inc. (NASDAQ:AVGO): Upgrade Hold to Buy by Star Investments. The analyst cites accelerating AI semiconductor growth, strong profitability metrics including a 67% EBITDA margin, and CEO Hock Tan’s commitment through 2030 as key factors supporting the bullish outlook.
“Despite a lot of positive developments, QuantumScape Corporation is actually trading much lower than it was a couple of months ago. The first live demonstration of an electric vehicle powered by QuantumScape solid-state batteries was a huge step forward towards a production launch… If the company can execute on its AI opportunity and VMware opportunity, and if the non-AI semiconductor market eventually rebounds, its FY 2025 PEG ratio implies that the stock has at least a 56% upside.”
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QuantumScape Corporation (NYSE:QS): Upgrade to Buy by Stone Fox Capital. The analyst highlights recent technical and partnership milestones, including the Cobra separator technology and expanded PowerCo deal, which significantly advance the commercialization timeline and reduce financial risk.
“The company now has a forecasted cash runway into 2029 via the 6-month extension from previous guidance. QuantumScape has a nearly $800 million cash balance and the future pre-payment from PowerCo. alone provides over $1 billion in liquidity… The key investor takeaway is that QuantumScape is interesting at $8 after this dip and the solid technical setup with a gap close just below this price.”
Downgrades
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JPMorgan Chase & Co. (NYSE:JPM): Downgrade Buy to Hold by Seeking Profits. Despite JPMorgan’s strong performance, fortress balance sheet, and growth in wealth management, the analyst believes the stock’s valuation now fully reflects these strengths after gaining nearly 50% over the past year.
“In other words, this rally in JPM shares is entirely justified by its strong position and growth levers. However, these fundamental strengths are now largely reflected in valuation, meaning future returns are more likely to be market-like. As such, I see shares now as a suitable “hold” and am downgrading them from a “Buy.” With shares around fair value, there is no need to sell, but I would like to see a pullback into the mid-$280s before buying more JPM.”
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United Parcel Service, Inc. (NYSE:UPS): Downgrade to Hold by The Dividend Collectuh. The analyst cites ongoing headwinds from high interest rates and tariffs, leading to weak financials and concerns about dividend sustainability despite management’s commitment to maintaining payouts.
“With the company’s financials seemingly in a free fall, this has put pressure on their ability to maintain the dividend. Back in February, UPS raised the dividend less than 1% to $1.64 a share. And seeing by their latest earnings, this was not covered by (earnings) of $1.55… While UPS appears to be a bargain, further downside poses a risk if the company is forced to cut its dividend. Management seems committed to it and does have some flexibility with no near-term debt and available liquidity.”