Street Calls of the Week

Market Recap: Key Insights from Wall Street Analysts

This week, we highlight the latest insights from Wall Street analysts on significant market movements.

Oracle

What happened?
On Monday, Erste Group upgraded Oracle Corporation to a Buy rating without assigning a price target.

Overview:
Erste anticipates that Oracle will see an increase in operating margins and a continuation of its stock’s upward trajectory. The company’s diverse software offerings and the expansion of its cloud services—now boasting a total of 162 data centers—are expected to enhance sales and profit growth. In the first quarter alone, Oracle signed 42 new cloud GPU contracts, setting a solid foundation for growth in the current and upcoming fiscal years. The analysts view Oracle’s stock as favorably valued based on its price-to-earnings ratio, supporting their prediction of sustained upward movement.

Ford

What happened?
On Tuesday, Goldman Sachs upgraded Ford to a Buy rating with a price target of $13.

Overview:
Goldman Sachs identifies a key margin opportunity for Ford driven by its profitable Ford Pro segment and a growing software services mix. The bank projects Ford will generate $1 billion in software revenue by 2025, with the aim of software and physical services making up 20% of Pro’s EBIT by 2026. Despite a 13% decline in stock value year-to-date amid cyclical concerns, Goldman notes Ford’s current trading at an attractive multiple compared to historical levels, with potential upside to the new price target, which includes a dividend yield of 6%.

Harley-Davidson

What happened?
On Wednesday, Baird downgraded Harley-Davidson to Neutral with a price target of $40.

Overview:
Baird analysts reported weak retail activity, excess inventory, and negative sentiment based on feedback from Harley-Davidson dealers. These factors indicate risks to the company’s guidance, with the summer presenting several challenges that frustrated stakeholders. Although Baird acknowledges the value of the Harley-Davidson brand, the surrounding negative sentiment has led to a cautionary outlook for the company moving forward.

Shoals Technologies Group

What happened?
On Thursday, Citi upgraded Shoals Technologies Group Inc to Neutral with a price target of $5.50.

Overview:
Citi analysts believe the stock is currently aligned with their target price, presenting a balanced risk/reward scenario. The resolution of a patent infringement case has alleviated some concerns, but potential risks remain, such as the upcoming launch of a product by a competitor and rising competition in the market. Analysts are cautious about gross margin volatility as operations stabilize.

M&T Bank

What happened?
On Friday, Wolfe upgraded M&T Bank to Outperform with a price target of $210.

Overview:
Wolfe expects M&T Bank to sustain peer-leading Net Interest Margins through 2026, pointing out that its margin has not faced significant pressure from cash flow swaps. The bank’s noninterest-bearing deposit mix outperforms industry averages, which underlines Wolfe’s confidence in M&T’s ability to surpass its peers in this area over the coming years.

This summary encapsulates the latest insights from leading analysts and provides a glimpse into potential investment opportunities and market challenges in various sectors.