Recent analyst actions have spotlighted significant movements for companies like Roblox (RBLX) and Palantir Technologies Inc. (PLTR), with both receiving upgrades justifying optimistic growth prospects. Conversely, GlobalFoundries (GFS) and Intel Corporation (INTC) have experienced downgrades due to concerns over valuation and market dynamics.
Upgrades
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Palantir Technologies (PLTR): Upgrade to Buy by RI Research. The analyst acknowledged previous valuation concerns but now emphasizes Palantir’s quality and growth prospects, outweighed by any valuation fears.
“Palantir remains a wonderful company and I am buying it despite extremely high valuation ratios… My motto will rely on eternal wisdom from Warren Buffett, which says that it is better to buy a wonderful company at a fair price rather than vice versa.”
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Roblox (RBLX): Upgrade to Buy by Gary Alexander. The analyst highlights strong acceleration in key growth metrics, such as daily active users (DAUs) and bookings, suggesting now is an opportune time to invest.
“Roblox’s bookings has accelerated for three straight quarters… One of the biggest possible tailwinds will be for Roblox to retain these young-adult gamers as they transition into adulthood.”
Downgrades
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Intel (INTC): Downgrade to Hold by Oakoff Investments. The analyst cites concerns over recent exuberant market sentiment and the incomplete status of Intel’s operational turnaround.
“The room for further expansion has shrunken significantly in recent weeks, and Intel needs to overdeliver versus the current already bullish estimates to fuel the current rally further. I simply doubt it can happen because after the low-hanging fruit is cut (the initial cost-cutting is over), the further they go in optimizing their OPEX and trying to boost top-line growth, the more difficult it becomes.”
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GlobalFoundries (GFS): Downgrade to Hold by Grassroots Trading. The analyst stresses that while the company remains strategically important, the current valuation already reflects its promise, with weak near-term growth standing out.
“The stock looks inexpensive based on EV/EBITDA and price-to-cash-flow ratios, especially given its strong free cash flow and low debt levels. However, the earnings-based fair value estimate comes in below the current share price, and near-term growth metrics aren’t strong at all.”