Here are Wednesday's biggest calls on Wall Street: RBC downgrades Starbucks to sector perform from outperform RBC said the turnaround is taking longer than expected for Starbucks. "When we assumed coverage in November '24 at Outperform a key aspect of our thesis was relatively small/temporary investments were required to turn around the US business. That did not materialize given ongoing labor and additional future investments which makes it tougher to justify the Outperform, so we move to the sidelines." Read more. Wolfe upgrades NRG Energy to outperform from peer perform Wolfe said the stock is a data center beneficiary. "We see NRG well-placed as the additionality play with 6+ GWs of gas new build potential for data centers. The company is now better diversified and longer power generation, while still trading at an attractive double-digit FCF yield." Truist upgrades Block to buy from hold Truist says it sees upside potential for Block shares. "We now see upside potential to Street margin expectations following the ~40% reduction in force, the stock has meaningfully de-rated and we believe capital return could surprise to the upside as FCF generation improves." Read more. Citi upgrades Constellation Brands to buy from neutral Citi expects beer to show "topline acceleration" at the beverage company. "We upgrade STZ f rom Neutral to Buy as we forecast a beer topline acceleration in FQ4/FY'27 as scanner data has improved and comps remain easy throughout 2026 as STZ cycles beer category weakness, especially among Hispanic consumers." Deutsche Bank upgrades SL Green to buy from hold Deutsche Bank said it sees "strong execution on asset sales and refinancings this year to be a positive catalyst and calm investor nerves" for the real estate investment trust company. "With the market seeming to ignore strong on-the-ground leasing fundamentals given AI concerns, we think capital markets are a necessary catalyst. Fortunately for SLG, NYC is the deepest and most liquid office market nationally." UBS downgrades Logitech to neutral from buy UBS says the "positive consensus revision cycle is easing." "Logitech showed pricing power to pass on tariffs. As a consequence, EBIT margins expanded strongly, driving sound positive consensus revisions over the last several quarters. We now think the positive consensus revision cycle is easing." RBC initiates Weatherford as buy RBC says the oilfield services company is too attractive to ignore. "With a valuation already discounting meaningful risk associated with the Iran war, we note that shares tend to significantly outperform peers coming out of shock-events. We initiate coverage of shares of Weatherford with an Outperform rating and $105 price target." Citi reinstates Netflix as buy Citi resumed coverage of the stock and says it sees a host of positive catalysts ahead. "We like Netflix for three reasons: 1) We see scope for NFLX to increase its FY26 EBIT guidance, 2) we expect a US price hike in 4Q26 and 3) we expect larger share repurchases. We see ~5% to ~17% upside from these catalysts." TD Cowen upgrades TotalEnergies to buy from hold TD Cowen says the oil and gas company is firing on all cylinders. "TTE has peer-leading (or close to leading) FCF growth, production growth, reserve/production, and ROCE." Bank of America reiterates Nvidia as buy The firm says it's sticking with Nvidia f ollowing a robust Q & A session at the company's GTC Conference. "Maintain Buy, $300 PO and a top AI pick following financial analyst Q & A session at GTC 2026." UBS upgrades Knight-Swift to buy from neutral UBS says the transport company is best positioned. "We are upgrading KNX to Buy due to rising visibility to attrition in truckload supply and elevated spot rates which reflect the resulting tightening in the market." Compass Point initiates Lineage as buy Compass Point says the warehouse storage company is "defensive." "We are initiating coverage of Lineage, Inc . (LINE) with a Buy rating and a $47/share 12- month PT..." Morgan Stanley reiterates Tesla as equal weight Morgan Stanley says the robotaxi is key for the stock to work. "TSLA's ability to scale the unsupervised robotaxi fleet is the most important catalyst for the stock this year." Guggenheim reiterates Disney as buy Guggenheim lowered its price target on Disney but says it's bullish on the entertainment giant's new CEO. "Our updated 12-month price target is $115, down from our prior $140 as we reassess our valuation metrics and the path ahead." Oppenheimer initiates Graham as outperform Oppenheimer initiated coverage of the defense, missile and space supplier and says shares are compelling at this price. "GHM specializes in custom engineering/fabrication of large/tremendous strength defense and industrial products, forged of thick high-grade stainless steel (condensers/heat transfer technology and ejectors/vacuum technology for nuclear powered carriers/submarines." Bernstein reiterates Micron as outperform The firm raised its price target on the stock to $510 per share from $330 ahead of earnings on Wednesday afternoon. "We maintain Outperform on Samsung, SK hynix and Micron and raise price targets to KRW225,000 (vs 140,000), KRW1,150,000 (vs 750,000) and US$510 (vs 330) respectively, primarily driven by increased forecasts reflecting the stronger conventional memory pricing going forward."
