Palo Alto Networks (NASDAQ:PANW) received a significant upgrade from Johnny Zhang, who sees sustained growth momentum and successful platformization strategy as key drivers for the cybersecurity leader. Hertz Global Holdings (NASDAQ:HTZ) also saw a modest improvement in outlook following signs of operational progress in its latest quarterly results.
On the downside, PepsiCo (NASDAQ:PEP) faced a downgrade as expected growth recovery failed to materialize, while Palantir Technologies (NASDAQ:PLTR) was downgraded amid concerns of speculative trading and extreme valuation multiples despite strong revenue performance.
Upgrades
- Palo Alto Networks (NASDAQ:PANW): Upgrade Hold to Buy by Johnny Zhang, CFA. The analyst cites the company’s strong 4Q FY2025 performance, accelerating RPO growth to 24% YoY, and continued achievement of the Rule of 40 for four consecutive quarters. “PANW’s 4Q FY2025 results and FY2026 guidance point to sustained growth momentum, driven by accelerating demand and meaningful success for its platformization strategy. The recent deal with CyberArk adds accretive synergies, with management targeting a 40% FCF margin by FY2028, signaling steady expansion in the next three years.”
- Hertz Global Holdings (NASDAQ:HTZ): Upgrade Sell to Hold by Ian Bezek. The analyst acknowledges tangible signs of operational progress in Q2 earnings, including improved fleet efficiency, better cost controls, and a return to positive adjusted EBITDA. “While the improvement has been incremental rather than transformative, there are enough positives here to nudge my outlook to a slightly more favorable perspective. Hertz shares have underperformed the S&P 500 by about 40% since my prior article. That’s enough to get me to move my rating up to a hold as opposed to my previous sell call.”
Downgrades
- PepsiCo, Inc. (NASDAQ:PEP): Downgrade Buy to Hold by YR Research. The analyst cites continued market share losses and failure of expected 2025 growth recovery to materialize, with negative volume growth and earnings declines persisting. “I made the mistake of upgrading PepsiCo to ‘Buy’ due to depressed valuation and expectations for a turnaround. As it becomes increasingly clear that a turnaround isn’t happening in the foreseeable future, I have to revise my thinking and stay true to perhaps the most important rule in investing. Stock prices follow earnings growth over time, and this doesn’t spell good fortune for a company that’s expected to see earnings decline.”
- Palantir Technologies Inc. (NASDAQ:PLTR): Downgrade from previous position to rating downgrade by Bashar Issa. Despite strong quarterly growth fueled by AI hype and government contracts, the analyst believes Palantir’s high installation and maintenance costs will restrict broad market penetration. “With a forward P/E ratio of 278, it is one of the most expensive companies in the U.S., dwarfing other big tech, such as Microsoft, Alphabet, and Meta, which are at the forefront of AI development. In our view, the ticker is driven by speculative retail traders, who, in July alone, poured $1.2 billion into Palantir.”