What were the key talking points on Wall Street this past week? Highlighted below are the five most prominent Buy recommendations and the five most notable Sell calls issued by top-tier Wall Street analysts for the period spanning January 26th to January 30th.
Top 5 Buy Calls:
1. Freedom Capital Upgrades Netflix to Buy on Recent Selloff
Freedom Capital elevated its rating for Netflix (NFLX) from Hold to Buy, setting a price target of $104. In a research note to clients, the firm pointed to the company's "strong" Q4 performance, which featured robust expansion in both its subscriber numbers and advertising segment. The upgrade was primarily driven by valuation considerations following a "significant share price correction" after the earnings report.
2. Meta Platforms Upgraded to Buy at Rothschild & Co Redburn
Rothschild & Co Redburn raised its stance on Meta Platforms (META) from Neutral to Buy, boosting its price target to $900 from $740. In a pre-earnings analysis, the firm cautioned investors that shares could potentially retreat to the mid-$500s if rising costs lead to a reduction in 2026 earnings forecasts. However, Rothschild perceives a significant "disconnect" between the current stock price and Meta's long-term intrinsic value. The firm contends that at $650, the upside potential for Meta substantially overshadows near-term downside risks. Rothschild concludes that with the upcoming fiscal 2026 guidance likely to reflect all cost factors and limited AI-driven upside, the present moment appears opportune for investors to initiate positions.
3. CoreWeave Upgraded to Buy at Deutsche Bank
Deutsche Bank upgraded CoreWeave (CRWV) from Hold to Buy, assigning a $140 price target. The firm informed investors that the company's medium-term outlook appears "solid" as it approaches its Q4 report. Deutsche Bank believes that consensus revenue estimates for CoreWeave could be revised "materially higher" throughout 2026 if the company successfully delivers planned capacity to its contracted customers. The firm also sees an opportunity for CoreWeave to "differentiate versus peers" in the coming year.
4. Cantor Starts Block at Overweight, Says Momentum Starting to Build
Cantor Fitzgerald commenced coverage of Block (XYZ) with an Overweight rating and an $87 price target. The firm indicated to investors that with the initial phases of Block's operational turnaround now complete, positive momentum is beginning to accelerate, as new product initiatives demonstrate that the company's innovation engine is "firing on all cylinders." Cantor Fitzgerald also noted that while the company's medium-term guidance was impressive, the focus now shifts entirely to execution.
5. Spotify Upgraded to Buy at Citi
Citi upgraded Spotify (SPOT) from Neutral to Buy, maintaining its price target of $650. The firm communicated to investors that the stock's current valuation is now attractive and that consensus estimates are achievable. Citi identifies potential catalysts for Spotify's share price in the form of forthcoming price increases and an acceleration in share buyback activities.
Top 5 Sell Calls:
1. PayPal Downgraded to Sell at Rothschild & Co Redburn
Rothschild & Co Redburn downgraded PayPal (PYPL) from Neutral to Sell, reducing its price target to $50 from $70. While acknowledging that PayPal's scale should ideally position it well for agentic commerce, the firm argues that this advantage will gradually erode as consumer payment preferences evolve. Rothschild states that the "marginal consumer" is increasingly opting for alternative payment methods, viewing solutions like Shop Pay, Stripe Link, Apple Pay (AAPL), and Google Pay (GOOGL) as "winning the incremental user."
2. Cantor Starts Western Union at Underweight, Sees Stablecoin Sentiment Headwinds
Cantor Fitzgerald initiated coverage of Western Union (WU) with an Underweight rating and a $9 price target. The firm acknowledged that Western Union's management has made impressive progress in enhancing the business. However, it highlighted that the company's extensive brick-and-mortar network represents a structural disadvantage compared to digital-first or digital-only remittance platforms. Cantor added that the company must additionally contend with ongoing U.S. immigration reform, regulatory changes, and headwinds related to stablecoin sentiment.
3. SLB Downgraded to Sell at Freedom Capital
Freedom Capital downgraded SLB (SLB) from Hold to Sell, increasing its price target slightly to $48 from $47. The firm stated that Q4 results continued to face pressure due to persistently weak global drilling activity and anticipates ongoing challenges for oilfield services earnings throughout 2026. Freedom Capital argues that SLB shares are trading above fair value and that the current valuation has "decoupled from oil market fundamentals."
4. Plains All American, GP Downgraded to Underperform at BofA After Outperformance
BofA downgraded both Plains All American (PAA) and Plains GP Holdings (PAGP) from Neutral to Underperform, keeping their respective price targets unchanged at $19. The analyst noted that Plains All American has been the top-performing MLP in its coverage universe in recent months, appreciating roughly 8.5%. However, the firm does not foresee a materially improved outlook, given the company's exclusive focus on crude oil. Compared to peers with more diversified contracts or terminal value, BofA believes the Plains entities are "less attractive for the risk."
5. DigitalBridge Downgraded to Underperform from Strong Buy at Raymond James
Raymond James downgraded DigitalBridge (DBRG) from Strong Buy to Underperform and did not provide a price target. This action follows the announcement that the company is being acquired by SoftBank (SFTBY) for $16 per share in cash. The analyst noted that the company was thoroughly shopped during the sale process, and Raymond James does not anticipate a competing offer that would surpass the current bid.
Comments