Recent analyst activity highlights notable upgrades for Tesla (TSLA) and CrowdStrike (CRWD), while Stellantis (STLA) and Merck (MRK) received downgrades. Tesla’s upgrade reflects optimism around Elon Musk’s pivot toward AI and robotics, while CrowdStrike’s 30% drawdown amid the broader software selloff has created a buying opportunity according to one analyst. On the downside, Stellantis faces continued challenges despite strategic changes under new leadership, and Merck’s valuation now reflects its improved outlook, limiting further upside.
Upgrades
- Tesla (TSLA): Upgrade Hold to Buy by Doron Levin. The analyst sees Tesla’s massive $20 billion capital investment in robotaxi infrastructure, AI, and humanoid robots as a speculative but potentially rewarding bet on Musk’s innovation track record.
“Musk’s business and innovation track record – with all the missed deadlines, pivots, delays, evasions and disappointments – remain a stellar achievement, one that will be studied and debated for years to come. For this reason alone, I rate TSLA a Buy. It will be a small position relative to my overall portfolio, one that I can afford to lose if Musk fails.”
- CrowdStrike Holdings (CRWD): Upgrade Hold to Buy by Mike Zaccardi, CFA, CMT. The analyst believes the 30% drawdown amid sector-wide software weakness has created an attractive entry point for the cybersecurity leader, citing robust fundamentals including 22% YoY revenue growth and record free cash flow.
“The company’s strategy of consolidating point products onto its single agentic security platform continues to gain traction, with 49% of subscription customers now utilizing six or more modules. CrowdStrike’s Next-Gen SIEM and Cloud business segments also achieved new high-water marks.”
Downgrades
- Stellantis (STLA): Downgrade Buy to Hold by Caffital Research. The analyst steps back from the previous bullish thesis as the company’s strategic reset under CEO Antonio Filosa, including a costly pullback on EV investments, underscores significant execution risks despite some early signs of improvement in North America.
“While the company has shown some green shoots in its financial performance in North America, a recovery is still dependent on Stellantis’ strategic changes’ success. … Much hasn’t been priced in, as the stock declined by -24% following recent announcements, but mostly for good reason, as the competitive landscape and previous failed EV investments weigh on the outlook.”
- Merck & Co (MRK): Downgrade Buy to Hold by The Alpha Analyst. The analyst notes that after a 60% total return since May 2025, Merck is no longer a deep-value patent cliff trade but a fairly valued compounder, with the easy gains likely behind and meaningful Keytruda erosion risks still ahead.
“Overall, Merck is today no longer a mispriced risk play, but a fairly priced, high-quality compounder, which is still undergoing transition, though. … The risk-reward of what Merck was priced for in May – a worst-case patent cliff – has become more balanced today. The rerating part of the story has also mostly played out.”