Ratings Weekly | AppLovin, Cloudflare, SolarEdge, CarMax, General Motors and More to Watch

Top 5 Buy Calls:

1. Argus starts AppLovin at Buy on strong double-digit revenue growth

Argus initiated coverage of AppLovin (APP) with a Buy rating and $520 price target. The stock had been hit by the so-called “SaaSamageddon” effect related to market sentiment based on a thesis that AI models, though the firm is citing AppLovin’s actual performance of strong double-digit revenue growth and profit margin expansion, the analyst tells investors in a research note. Valuation, which had been soaring, came back to earth on the negative market sentiment, presenting an entry point, the firm added.

2. Autodesk initiated with a Buy at Jefferies

Jefferies initiated coverage of Autodesk (ADSK) with a Buy rating and $300 price target. The firm believes concerns around architecture, engineering and construction software are unjustified. Autodesk is a “durable double-digit grower” with one of the highest EBIT margins in the sector and a capital-light model, Jefferies tells investors in a research note. The firm sees the shares trading at a “trough” valuation and attractive risk/reward.

3. Deutsche upgrades General Motors to Buy following pullback

Deutsche Bank upgraded General Motors (GM) to Buy from Hold with a price target of $90, up from $83, following the recent pullback in shares. The near-term volatility can be attributed to geopolitical developments, says the analyst, whose thesis is built on the resilience that GM has demonstrated multiple times in recent years. The firm views recent weakness as an “attractive entry point to gain exposure to a potential multi-year re-rate story,” the analyst tells investors.

4. KeyBanc upgrades T-Mobile on valuation, Q1 results catalyst

KeyBanc upgraded T-Mobile (TMUS) to Overweight from Sector Weight with a $260 price target. The firm sees accelerating organic EBITDA growth with “upside levers” for T-Mobile. The company has an “advantageous” network position driving a competitive advantage for fixed wireless access, the analyst tells investors in a research note. In addition, KeyBanc believes T-Mobile’s balance sheet offers “optimal optionality.” It views the stock’s valuation as “compressed” relative to history and thinks the company’s Q1 results will serve as a catalyst.

5. Cloudflare upgraded to Overweight at Piper Sandler

Piper Sandler upgraded Cloudflare (NET) to Overweight from Neutral with a $222 price target. The firm is positive on the company’s infrastructure positioning across multiple growth opportunities across Delivery, APSEC, NaaS, SASE, IAS, and IaaS. Piper adds that the landscape is shifting toward more EDPs, or edge distribution platforms, with Cloudflare seen as a dominant player here, with strong LLM relationships that should see it benefit from AI adoption.

Top 5 Sell Calls:

1. Best Buy downgraded to Sell from Buy at Goldman Sachs

Goldman Sachs double downgraded Best Buy (BBY) to Sell from Buy with a price target of $59, down from $76. The firm sees risk the company’s sales post the Q1 report as higher memory costs start to work their way into the price of laptops and computers. Best Buy faces margin compression risks as consumers potentially trade down to lower-priced models and volume declines as manufacturers prioritize fewer consumer electronic shipments, Goldman tells investors in a research note. The firm also believes the company continues to struggle in growing its appliance and consumer electronic categories.

2. Flutter Entertainment downgraded to Sell from Buy at Citi

Citi double downgraded Flutter Entertainment (FLUT) to Sell from Buy with a price target of 6,800 GBp, down from 15,800 GBp. Citi also opened a “negative catalyst watch” on Flutter and removed the shares from its European Focus List. The firm no longer values the company U.S. business on fiscal 2028 estimates due to reduced conviction in its growth forecasts over 2026 and 2027. In addition, FanDuel Predicts warrants minimal value amid the regulatory uncertainty, Citi tells investors in a research note.

3. SolarEdge cut to Sell at Goldman Sachs amid challenging valuation

Goldman Sachs downgraded SolarEdge (SEDG) to Sell from Neutral with a price target of $31, down from $36, as part of a broader research note previewing Q1 results in Solar. The firm is citing elevated expectations and challenging valuation for SolarEdge, especially when considering margin gains tied mostly to 45X credits. The stock’s recent rally also suggests expectations for potential upside from a material improvement in European demand, stemming from rising energy prices following the outbreak of war in Iran, appear to be creating a higher bar of expectations, Goldman added.

4. CarMax resumed with an Underperform at BofA

BofA resumed coverage of CarMax (KMX) with an Underperform rating and $40 price target after the company reported Q4 sales of $5.96B, down 1% year-over-year but above the Street at $5.74B, and EPS below expectations as unit declines moderate from lower prices. While “constructive” on CarMax’s overall long-term strategy, the firm cites continued comp unit declines and market share loss for its Underperform rating.

5. Mizuho double downgrades NXP to sell on auto headwinds

Mizuho double downgraded NXP Semiconductors (NXPI) to Underperform from Outperform with a price target of $188, down from $255. NXP’s “big” auto exposure is a headwind in 2026 amid soft volumes, the firm tells investors in a research note. Mizuho says the company also has “has significant in-house inventory” of $2.6B.