Here is a summary of key research rating changes from influential Wall Street analysts that can impact market movements. These are the institutional rating adjustments investors should be aware of today.
**Major Rating Upgrades**
Morgan Stanley upgraded Block (XYZ) from Equal-Weight to Overweight, raising its price target from $72 to $93, citing the company's quarterly earnings performance. The firm believes Block's growth will accelerate following recent product upgrades, expanding its total addressable market.
TD Cowen upgraded Southwest Airlines (LUV) from Hold to Buy, increasing its price target from $50 to $66. The firm anticipates Southwest will raise its performance guidance in March, with upward revisions to profit expectations likely to drive the stock price higher.
Wolfe Research upgraded Honeywell (HON) from Peer Perform to Outperform, with a price target of $293. The analyst believes Honeywell's planned spin-off of its aerospace business could unlock a sum-of-the-parts valuation of approximately $290.
UBS upgraded Palantir (PLTR) from Neutral to Buy, with a price target of $180. This upgrade is primarily valuation-based, recommending investors buy the stock after it retreated 35% from its highs.
Redburn Atlantic upgraded Live Nation (LYV) from Neutral to Buy, raising its price target from $166 to $193. The firm stated that the U.S. Department of Justice's rationale for seeking to break up the company is "losing its persuasiveness" and that the two parties "appear close to a settlement."
**Major Rating Downgrades**
Benchmark downgraded Warner Bros. Discovery (WBD) from Buy to Hold and removed its prior price target. This follows the WBD board's acceptance of a $31 per share acquisition offer from Skydance, part of Paramount Global, the previous day. Deutsche Bank also downgraded Warner Bros. Discovery from Buy to Hold, while raising its price target from $29.50 to $31.
Citigroup downgraded Dollar Tree (DLTR) from Buy to Neutral, maintaining a $132 price target. The downgrade was attributed to elevated valuation, as the stock has doubled since April 2025.
Citigroup downgraded Duolingo, Inc. (DUOL) from Buy to Neutral, lowering its price target from $270 to $101. The bank views 2026 as a "transition year" for Duolingo due to its decision to prioritize user growth over monetization and subscription growth. Scotiabank, Evercore ISI, Morgan Stanley, and JPMorgan also concurrently downgraded Duolingo to Neutral-equivalent ratings.
GLJ Research downgraded Sunrun (RUN) from Hold to Sell, stating that its view has become "incrementally more negative" based on the previous evening's earnings report and disclosures. Jefferies also downgraded Sunrun from Buy to Hold, maintaining a $22 price target.
Morgan Stanley downgraded Synopsys (SNPS) from Overweight to Equal-Weight, reducing its price target from $550 to $480. The firm noted that while first-quarter revenue reached the high end of guidance, growth in its core Electronic Design Automation business continues to slow.
**Major Initiations/Resumptions of Coverage**
Bank of America resumed coverage on Costco (COST) with a Buy rating and a $1,185 price target. The bank believes Costco is well-positioned as a leader in a K-shaped economy, strongly appealing to high-income households while also attracting value-conscious consumers with industry-leading value.
Bank of America resumed coverage on Walmart (WMT) with a Buy rating and a $150 price target. The bank highlighted Walmart's ongoing gains in high-income shopper share through faster delivery services, coupled with its Everyday Low Price strategy for lower-income consumers. Sustained sales growth and accelerating profit increases are expected to drive EPS revisions and further valuation expansion.
Bank of America resumed coverage on Target (TGT) with an Underperform rating and a $103 price target. The bank considers market expectations for sustained comparable sales growth after the first fiscal quarter to be "overly optimistic" (Q1 benefited from increased tax refunds), and believes EPS recovery will still take time.
Canaccord initiated coverage on Neurogene (NGNE) with a Buy rating and a $200 price target. The firm projects the company's core product, NGN-401, could launch by early 2028, with global peak sales potentially reaching $2.2 billion by 2033.
Rosenblatt initiated coverage on Palantir (PLTR) with a Buy rating and a $150 price target. The firm positions Palantir as a "disruptive, uniquely advantaged AI software leader."
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