Image Source: PexelsWhat has Wall Street been buzzing about this week? Here is a look at the top 5 buy calls and the top 5 sell calls made by Wall Street’s best analysts during the trading week of Jan. 13-17, 2025. First, here are the top 5 buy calls of the week.
1. Netflix Upgraded to Buy at Seaport Research, Price Target $955
Seaport Research upgraded Netflix (NFLX) to Buy from Neutral with a $955 price target ahead of its Q4 results.The firm is boosting its net member addition estimate to up 9.0 million from up 5.7 million, while citing the operational tailwinds that should support Netflix’s position with industry-leading original content accolades, including gross additions, attraction of more top content projects, advertising growth, and live sports rights wins that should come with that reputation. Seaport believes that Netflix should be a “core holding” for investors given its revenue growth, operating margin expansion, and free cash flow conversion.
2. Visa Upgraded to Buy at Seaport Research on U.S. Exposure
Seaport Research upgraded Visa (V) to Buy from Neutral with a $359 price target. For 2025, the firm prefers Visa on a relative basis over Mastercard (MA), primarily due to Visa’s more significant U.S. exposure. Seaport expects upside to consensus revenue and EPS expectations for Visa this year, and it argues that the company’s upcoming investor day should “also be a positive catalyst.”
3. Instacart Upgraded to Buy at BTIG
BTIG upgraded Instacart (CART) to Buy from Neutral with a $58 price target. The immediate catalyst for the upgrade is a step-up in estimates with BTIG’s tracking pointing to strong order growth, putting it above consensus for Q4 and 2025, the firm tells investors in a research note. BTIG says Instacart is a leader in a secular growth category, unburdened by the risk “bedeviling rideshare.” The stock’s valuation is “not particularly challenging,” adds the firm.Meanwhile, Mizuho initiated coverage of Instacart with an Outperform rating and a $55 price target. The firm believes Instacart’s “category-leading position” in grocery delivery is underappreciated at recent share levels.According to the firm, competitive concerns are overstated given the company’s “deep” technology integration with grocers on inventory, combined with its largest transactions data and specialized delivery workforce, which creates an unparalleled user experience. Mizuho says that with “significant” total addressable market and low penetration, Instacart is investing in growth by lowering grocery costs while its volume growth has accelerated.
4. UPS Upgraded to Buy at BofA
BofA upgraded UPS (UPS) to Buy from Neutral with an unchanged price target of $150. The firm sees a potential end to the freight recession in 2025 and cites benefits from the company’s dynamic pricing model and cost initiatives. BofA believes gains from these factors will offset potential volume losses as UPS insources the remainder of the SurePost last mile volumes from the USPS.
5. Lumentum Double Upgraded to Overweight at Barclays
Barclays double upgraded Lumentum (LITE) to Overweight from Underweight with a price target of $125, up from $80. The firm says the combination of “massive” port count increases, combined with a strong desire to use a U.S. supply chain, have driven hyperscalers to “qualify at an alarmingly fast rate.”The firm’s math suggests Lumentum’s module business opportunity is so large in 2025 “that we need to get on the right side of history.” Barclays is now incrementally positive on Lumentum, as it sees module share gains and capacity expansions driving a strong multi-year growth profile across 2025 and 2026.Next, here are the top 5 sell calls of the week.
1. Southwest Downgraded to Sell at Citi and BofA
Citi downgraded Southwest (LUV) to Sell from Neutral with a price target of $29.50, down from $31.50. Southwest’s earnings quality and free cash flow conversion look weaker than they did before the pandemic, the firm tells investors in a research note.Citi says that as U.S. network airlines enjoy positive earnings quality and free cash flow trajectories, other carriers “have overtaken Southwest on these fronts.” However, Southwest now trades at a bigger price-to-earnings premium to the group than it did pre-COVID, contends the firm.Over time, Citi sees Southwest’s valuation correcting to more normalized levels, as the network carriers’ premium travel gains, limit Southwest’s efforts to penetrate that category.Meanwhile, BofA also downgraded Southwest to Underperform from Neutral with a price target of $31, down from $33. Given less exposure to corporate, premium, and international routes, the firm downgraded both Southwest and JetBlue (JBLU), arguing that both airlines trade at the high end of historical valuation ranges despite less exposure to “the strongest industry trends.” Both also are exposed to execution risk as Southwest expands its product offering and JetBlue continues to fine tune its network, the analyst added.
2. Exane Downgrades Intuit to Underperform on Risks, Valuation
Exane BNP Paribas downgraded Intuit (INTU) to Underperform from Neutral with a price target of $530, down from $610. The company’s risks include its over-reliance on price versus seat and unit growth, market expectations for “big earnings beats” of guidance, potential generative artificial intelligence competitive disruption, the need to invest in research and development, a lack of generative AI monetization, and the stock’s “premium valuation,” the firm tells investors in a research note.Exane says that with H&R Block (HRB) leveraging its Assisted “pedigree,” Block’s (SQ) Cash App looking to cannibalize the segment with free offerings, and the Internal Revenue Service’s Direct File launching in all 50 states this tax season, there is risk that Intuit’s recently lowered consumer growth outlook “is not as de-risked as many investors think.”
3. Edwards Lifesciences Downgraded to Underperform at Wolfe Research
Wolfe Research downgraded Edwards Lifesciences (EW) to Underperform from Peer Perform with a $60 price target. The firm says its core transcatheter aortic valve replacement market share concerns have increased since the discovery of FDA information suggesting further deterioration in mortality data at six years in the Partner 3 trial. Also, after another material miss and lower cycle in 2024 that brought the Street closer to Wolfe’s prior thinking, the firm’s out-year estimate variance versus the Street has grown again.
4. Ball Corp. Downgraded to Underweight at Wells Fargo
Wells Fargo downgraded Ball Corp. (BALL) to Underweight from Equal Weight with a price target of $49, down from $56. The firm believes beverage can manufacturers face the most significant headwinds within its coverage to start 2025, driven by an “already challenging” macro backdrop, trade policy risks, the “Make America Healthy Again” agenda, and the Surgeon General’s warning on alcohol.For Ball, Wells’ concerns are its over-exposure to beer, near-term exposure to beverage consumption associated with the Los Angeles fires, and the stock’s valuation.
5. Nokia Downgraded to Sell at Goldman Sachs
Goldman Sachs downgraded Nokia (NOK) to Sell from Neutral with an unchanged price target of $3.60. The firm cites valuation for the downgrade following the stock’s outperformance. Nokia shares rose 40% in 2024, which is unwarranted, as the company saw continued downwards consensus earnings revisions through the period, as well as pushouts in Networks Infrastructure owing to delayed conversion of orders to revenue, Goldman tells investors in a research note.At the recent valuation, the shares already reflect an upside scenario of improving sentiment and recovery in Networks Infrastructure, where visibility has historically been low, contends the firm.More By This Author:Here’s What Wall St. Experts Are Saying About These Banks Ahead Of EarningsMint, 3 E Network Technology Make Public DebutWall Street’s Top 10 Stock Calls This Week – Saturday, Jan. 11
