Wall Street analysts revise ratings across tech, defense and consumer names

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Highlights

Morgan Stanley reiterates SpaceX as overweight, raising 2027 revenue and EBIT forecasts, lowering debt estimates, and bringing forward free cash flow break-even to 2031.
Citi upgrades Coupang to buy and Guggenheim initiates Lockheed Martin at buy with a $735 price target, while Barclays maintains overweight on AMD following strong earnings momentum.
Citi downgrades Adobe to sell on downside risk to 2027 growth estimates, and Morgan Stanley cuts Flagstar to underweight due to delayed turnaround amid higher rates.

Rating changes span growth, valuation and financing themes

As reported by CNBC, several of Wednesday's most notable calls focus on companies where analysts see either improving earnings trajectories or mounting pressure on outlooks. Morgan Stanley reiterates SpaceX as overweight, saying the company is "getting cheaper" after lifting its 2027 revenue and EBIT estimates, bringing forward free cash flow break-even to 2031 and reducing projected debt issuance.

Citi upgrades Coupang to buy from neutral, citing expected sequential adjusted EBITDA improvement from the fourth quarter of 2026, a smaller earnings drag from its developing offering business in 2027 and valuation metrics that suggest the share price is near a floor. Guggenheim initiates Lockheed Martin with a buy rating, pointing to long-term growth drivers and a $735 price target that implies 15% upside potential.

Rosenblatt upgrades Navitas Semiconductor to buy after earnings, saying the company's high-power strategy has reached an inflection point, with accelerating growth, a book-to-bill ratio above 1.0 and backlog extending into mid-2027. Barclays also reiterates Advanced Micro Devices as overweight following earnings, describing AMD as its favorite idea in the group as both CPU and GPU businesses accelerate.

Other positive calls include Truist's upgrade of Edwards Lifesciences to buy from hold on expected revenue growth and accelerating EPS potential, Wells Fargo's initiation of On Holding as overweight on expectations for renewed growth into 2027 and Deutsche Bank's reiteration of CoreWeave as buy despite a lower price target tied to somewhat higher near-term financing costs. Cantor Fitzgerald upgrades Ouster to overweight after a steep share-price decline, initiates Netskope as overweight, and Jefferies starts Core & Main at buy, citing durable demand from municipal water and repair and replacement activity.

Northland upgrades Astera Labs to outperform after what it calls a strong quarter and raised guidance, while Oppenheimer lifts Transcat to outperform on expectations that stronger organic service growth translates into margin expansion and earnings revisions.

Downgrades and special situations shape risk outlook

Not all of the day's calls are constructive, with some analysts warning about delayed turnarounds or softer growth expectations. Citi downgrades Adobe to sell from neutral, saying it sees downside risk to consensus growth estimates into fiscal 2027, while Morgan Stanley cuts Flagstar to underweight from overweight because higher rates are delaying the bank's turnaround more than previously expected.

Special-situation names also draw attention. Wolfe upgrades MSG Knickerbockers to outperform from peer perform, arguing that increasing team value and pressure around cash needs raise the chances of a minority sale or a take-private transaction. The same firm initiates MSG Rangers as outperform, saying cash burn and limited debt capacity make the odds of an equity transaction very high and increase the likelihood of a premium-priced minority sale.

Taken together, the analyst calls show Wall Street continuing to sort companies by balance-sheet flexibility, earnings visibility and strategic optionality. Technology names remain central to the day's activity, but defense, healthcare, financials, retail and infrastructure also feature prominently as firms weigh whether recent results support reratings or signal further downside.

Our earlier article looked at S&P Global Ratings’ warning that geopolitical shocks and sustained fiscal expansion are increasing sovereign borrowing risks as global funding costs stay elevated. It highlighted that emerging and frontier markets are especially exposed because debt-service burdens are high relative to narrower revenue bases, while energy- and food-price pressures linked to major conflicts can worsen inflation and strain public finances.

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