Recent analyst actions include significant updates on high-profile companies such as Meta Platforms (META) and Palantir Technologies (PLTR). Analysts have upgraded these stocks, citing optimistic future prospects and strategic investments. On the flip side, there are notable downgrades for Apple (AAPL) and Crocs (CROX), reflecting concerns over valuation and market performance.
Upgrades
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Meta Platforms (META): Upgrade by Stone Fox Capital. The analyst highlights the company’s strategic investment in AI and the Metaverse despite short-term earnings pressure.
“The key investor takeaway is that Meta spending aggressively is clearly scary to the stock market. Ultimately, as long as the business continues to grow at a solid clip, the company will grow into any additional capacity built for the AI opportunity.”
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Palantir Technologies (PLTR): Upgrade to Buy by Gary Alexander. The analyst points to Palantir’s accelerating commercial momentum and robust operational leverage as key reasons for the upgrade.
“Palantir isn’t just a growth story anymore, but its growth/profitability balance is off the charts in the industry. The company’s revenue growth plus pro forma operating margins exceed 110, whereas most traditional SaaS companies struggle to simply hit the Rule of 40.”
Downgrades
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Apple (AAPL): Downgrade to Hold by The Asian Investor. The analyst raises concerns about Apple’s premium valuation despite robust revenue growth in its Services segment.
“Apple is now 10% more expensive than the average big tech company in the industry group, which may be an indication of overvaluation… I see long-term value for investors in Apple’s capital returns, high profitability and shifting revenue mix, but I would not consider buying into the technology company at current valuation highs.”
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Crocs (CROX): Downgrade to Sell by Gary Alexander. The analyst points to waning sales, eroding margins, and a heavy debt load as primary factors for the downgrade.
“The deterioration in wholesale is a reflection of retailers’ reticence to carry slow-selling inventory in the wake of a weaker consumer spending environment. Yet we have cause for concern in DTC as well. The company decided to pull back on promotions in its own channels to try to offset margin losses, but clearly this has had the impact of muting growth.”