Recent analyst actions have focused on upgrading companies like Hasbro (NASDAQ:HAS) and PepsiCo (NASDAQ:PEP). These upgrades are driven by robust growth in select segments, offering positive outlooks for the companies’ futures. In contrast, downgrades for UiPath (NYSE:PATH) and Zillow (NASDAQ:Z) reveal concerns over demand stability and regulatory hurdles. The latest evaluations underscore the varying challenges and opportunities present across different market sectors.
Upgrades
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Hasbro Inc. (NASDAQ:HAS): Upgrade Hold to Buy by Seeking Profits. The analyst notes strength from the company’s Wizards and Digital segments, which are offsetting weaknesses in its consumer products division.
“With buybacks coming into the horizon over the next 12 months and HAS guiding conservatively, shares look increasingly attractive…Wizards momentum shows no sign of stopping.”
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PepsiCo Inc. (NASDAQ:PEP): Upgrade Hold to Buy by Luca Socci. Despite recent challenges, insights from Elliott Investment Management indicate a potential turnaround through strategic restructuring.
“The biggest catalyst for Pepsi is the potential turnaround. If Pepsi sells its bottling business and manages to raise margins, the stock will react positively…All in all, I am upgrading Pepsi to a buy. I am not convinced by its fundamentals and by the macroeconomic data. However, I think that when Elliott moves several billion, the likelihood of a positive outcome over a 12-24 month period increases.”
Downgrades
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UiPath Inc. (NYSE:PATH): Downgrade Buy to Hold by Bay Area Ideas. Although the company is making progress in Agentic Automation, slowing ARR growth and retention rate issues pose concerns.
“UiPath has all the ingredients to be an Agentic leader… However, perhaps adoption and demand haven’t been great so far. ARR growth slowdown and retention rate deterioration are potentially ominous signals.”
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Zillow Group, Inc. (NASDAQ:Z): Downgrade Buy to Neutral by Gary Alexander. The uncertainty looming from the FTC’s lawsuit against Zillow’s Rentals segment presents a significant risk.
“While I typically think lawsuits are a mere distraction for most companies, I am particularly concerned about fallout impacts that the FTC suit could have on Zillow’s Rentals business, which has become the lifeblood of the company’s growth. Considering the substantial added uncertainty on this stock, I’m downgrading my position on Zillow to “Neutral.”