Wall Street analysts reviewed several major stocks after earnings reports and changes in companies’ business plans.
- Phillip Securities upgraded SpaceX to ‘Buy’ on strong computing demand and quick returns on new investments.
- BNP Paribas and CLSA upgraded Tesla amid speculation about a potential SpaceX merger.
- Wolfe Research and Needham downgraded Netflix as audience engagement and revenue growth weakened.
Wall Street turned bullish on SpaceX (SPCX) and Tesla Inc. (TSLA) as revenue outlook and merger buzz fueled optimism, while CoreWeave (CRWV) won an upgrade despite debt fears. Netflix (NFLX) and Chipotle Mexican Grill (CMG) faced slowing growth, while Salesforce’s Braze deal prompted analysts to reassess the stock’s upside possibility.
SpaceX Forecasts Drive Analyst Optimism
Phillip Securities upgraded SpaceX stock to ‘Buy’ from ‘Sell’ and lifted its price target to $250 from $75, implying a 72% upside from its last close. The firm listed strong demand for computing capacity, pricing hikes on renewed contracts and expectations that new infrastructure investments could recover their costs in less than a year. Management’s outlook also points to first-quarter 2027 revenue exceeding twice the level recorded in the third quarter (Q3) of 2026.
Bank of America raised its SpaceX price target to $275 from $235, maintaining a ‘Buy’ rating after Q3 results exceeded expectations. The firm expects SpaceX to reach its previously stated goal of $100 billion in annualized revenue by the end of 2026 quickly. SpaceX now projects $33 billion to $37 billion in revenue for Q1 2027, up from the roughly $22 billion analysts had anticipated.
Pivotal Research analyst Jeffrey Wlodarczak raised his price target on SPCX to $260 from $230 and kept a ‘Buy’ rating, citing Elon Musk’s prediction that the company could generate $500 billion to $1 trillion in annual recurring revenue by the end of 2027.
Tesla’s Potential SpaceX Merger Invokes Bullish Calls
BNP Paribas upgraded Tesla stock to ‘Neutral’ from ‘Underperform’ and increased its price target to $420 from $266, implying a 12% upside. The firm maintained concerns about the slow pace of AI development and huge spending requirements, but said the possibility of SpaceX acquiring Tesla has become an important consideration in its valuation.
CLSA also upgraded Tesla, moving to ‘Hold’ from ‘Underperform’ and raising its target to $400 from $310. The firm was positive about improved operating cash flow, including $1.53 billion in positive free cash flow during Q3, although the figure was 62% lower year-on-year. CLSA believes Tesla’s growing AI focus creates a strong connection with SpaceX. On Thursday, Elon Musk’s SpaceX and Tesla confirmed they set up independent board committees to explore closer ties between the companies, including a possible merger.
CoreWeave Wins Upgrade Despite Financing Risks
Goldman Sachs turned bullish on CoreWeave stock, upgrading it to ‘Buy’ from ‘Neutral’ but reduced its price target to $106 from $139. The new price target still suggests CoreWeave shares could rise 90.6%. However, the stock has dropped 38.4% since Aug. 11 and 30% over the past two weeks as market uncertainty raised concerns about the company’s ability to raise money and demand for AI infrastructure.
Goldman nevertheless sees room for stronger returns over the next two years, citing constrained computing supply and CoreWeave’s competitive position in the cloud infrastructure market.
Netflix Downgrades Reflect Content And Growth Concerns
Wolfe Research lowered Netflix stock to ‘Peer Perform’ from ‘Outperform,’ saying the company’s higher spending has not kept viewers more engaged. The firm also said recent changes in Netflix’s content leadership could delay efforts to fix the problem.
Netflix said last that its chief content officer, Bela Bajaria, will step down. Former Disney executive Peter Rice will take over her role. Netflix’s Q4 forecast disappointed investors as it expects revenue of $13.4 billion, slightly below Wall Street’s $13.5 billion estimate, and an operating margin of 26%.
Needham analyst Laura Martin separately cut Netflix to ‘Hold’ from ‘Buy’. Revenue growth adjusted for currency movements slowed from 14% in Q1 to 12% in Q2 and 11% in Q3. Needham expects growth to slip into single digits in fiscal 2027 and believes the company faces a difficult content strategy challenge as competition from Alphabet Inc. (GOOGL), particularly YouTube, intensifies.
Salesforce Deal Limits Braze’s Upside
Raymond James downgraded Braze stock to ‘Market Perform’ from ‘Outperform’ after Salesforce (CRM) agreed to buy the company for $47.50 per share in cash. The analyst sees benefits from the deal, including opportunities to sell more products to customers, and believes another buyer is unlikely to make a competing offer.
DA Davidson also moved Braze to ‘Neutral’ from ‘Buy’. The proposed transaction values Braze’s equity at the agreed cash offer and its business at $5.66 billion. The firm views the premium as favorable for shareholders and expects the acquisition to close in 2027.
Chipotle Faces A Tougher Sales Outlook As Consumers Scale Back Spending
TD Cowen downgraded Chipotle Mexican stock to ‘Hold’ from ‘Buy’ and cut its price target to $32 from $44. The firm flagged signs that October sales may fall short of expectations for an improvement in Q4. It also questioned whether Chipotle can achieve the expected 3% comparable-sales growth in 2027, given its reliance on sales initiatives that have yet to show results.
So far this year, SPCX, TSLA, CRWV, NFLX and CMG stocks have declined between 10% and 28%, while BRZE has gained over 33%.
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