Recent analyst actions include significant upgrades for MARA Holdings (MARA) and changes in outlook for Hershey (HSY) amid commodity price fluctuations. Bay Area Ideas has upgraded MARA from Hold to Buy, citing strong Q3 performance and promising AI expansion opportunities. Meanwhile, Luca Socci has revised Hershey from Sell to Hold, noting potential recovery as cocoa prices moderate. On the downside, Juxtaposed Ideas has downgraded Unity Software (U) despite robust growth engines, while Chris Lau has moved Futu Holdings (FUTU) from Buy to Hold amid cryptocurrency market volatility.
Upgrades
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MARA Holdings (MARA): Upgrade Hold to Buy by Bay Area Ideas. The analyst cites MARA’s strong Q3 financial and operational results with 92% YoY revenue growth, improved efficiency metrics, and strategic expansion into AI and HPC markets as key factors behind the upgrade.
“MARA’s strong operational metrics show that the company is well-positioned for the future of computing, whether that’s for AI or for crypto mining. As stated above, Bitcoin prices are, of course, weighing on the stock now, but this is just a temporary headwind. Internally, MARA is as strong as ever, and AI provides a new growth driver in the years to come. The valuation is really at a quite low level right now, and so I view this as a prime buy the dip opportunity in the stock.”
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The Hershey Company (HSY): Upgrade from Sell to Hold by Luca Socci. Despite margin pressure due to high commodity costs, the analyst sees potential recovery as cocoa and sugar prices begin to moderate, with improving guidance suggesting stabilization.
“If cocoa and sugar prices keep moving downward during the quarter, then I think Hershey would be a very good fit for many portfolios. I will consider even adding it back as it adds a bit of protection and high-quality diversification from a possible tech sell-off that could be forming right now. As a result, I revise my rating up by one notch to a hold, believing that a new bull case could be on its way for this beaten-down stock.”
Downgrades
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Unity Software (U): Downgrade Buy to Hold by Juxtaposed Ideas. Despite promising growth in ad-tech and gaming development segments, the analyst cites premium valuations and mixed technical indicators suggesting sideways trading as reasons for caution.
“I am of the opinion that the Audience Hub exuberance has already been priced in, as observed in U’s inflated FWD EV/Sales valuations of 8.94x and FWD EV/EBITDA valuations of 41.22x, compared to its diversified ad-tech peers. Pending a further acceleration in U’s growth prospects in the high double digits to warrant the premium valuations, I am of the opinion that the stock appears somewhat expensive at my estimated 3Y PEG non-GAAP ratio of 1.88x.”
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Futu Holdings (FUTU): Downgrade Buy to Hold by Chris Lau. While the company posted strong Q3 results with 86.1% revenue growth, the analyst expresses concern about FUTU’s reliance on crypto trading momentum amid Bitcoin’s recent correction.
“Futu’s reliance on crypto trading momentum is a risk factor for the current quarter. A few experts have raised the alarm on Bitcoin since its peak in late October… Although investors should not try to predict how stock markets will fare this quarter, they should not ignore the strong selling in the Magnificent Seven technology stocks in the last week. The decline might spread to Hong Kong technology stocks.”