Pro Recap: Wall Street Analysts’ Top Takeaways

Investing.com — Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week.

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Oracle

What happened?

On Monday, Erste Group upgraded Oracle Corporation (NYSE:ORCL) to Buy without a price target.

TLDR:

Erste expects increased operating margin and continued stock upward trend. Software offerings and 162 data centers boost sales and profit growth.

What’s the full story?

Erste analysts highlight that Oracle’s attractive software offerings have significantly improved its sales situation. Oracle is expanding its cloud services with new data centers, totaling 162 either operational or under construction. Additionally, 42 new cloud GPU contracts were signed in Q1, setting the stage for strong sales and profit growth going forward.

Expectations include an increase in operating margins, with Erste noting that the stock is favorably valued based on its P/E ratio, suggesting an ongoing upward trend. The Buy rating implies an expected total return p.a. of over 15%.

Ford

What happened?

On Tuesday, Goldman Sachs upgraded Ford (NYSE:F) to Buy with a $13 price target.

TLDR:

Goldman sees Ford Pro’s profitable commercial business and software growth driving margin opportunities.

What’s the full story?

Goldman identifies margin growth potential for Ford, driven by its profitable commercial division, Ford Pro, alongside a growing software and services mix. The bank notes Ford’s aim for $1 billion in software revenue by 2025, with software and services expected to make up 20% of Pro EBIT by 2026. Growing subscriptions are projected at a 35-40% CAGR.

Despite the stock’s 13% decline year-to-date, Goldman sees it trading at a low 5x NTM EPS estimate, forecasting 23% upside to the new $13 price target and an overall approximate 30% total return including the 6% dividend yield.

Harley-Davidson

What happened?

On Wednesday, Baird downgraded Harley-Davidson (NYSE:HOG) to Neutral with a $40 price target.

TLDR:

Dealers report weak retail, excess inventory, and negative sentiment, risking Harley-Davidson’s guidance. Caution advised due to stakeholder frustration.

What’s the full story?

Baird gathered dealer insights that revealed weak retail performance, high inventory, and general negativity, suggesting potential risks to Harley-Davidson’s guidance. Past unfavorable news furthered frustration among stakeholders. While acknowledging the brand’s inherent value, Baird recommends caution due to the challenging market.

Shoals Technologies Group

What happened?

On Thursday, Citi upgraded Shoals Technologies Group Inc (NASDAQ:SHLS) to Neutral with a $5.50 price target.

TLDR:

Stock aligned with target; balanced risk/reward; patent case largely resolved. Risks include product launch, competition, and margin volatility.

What’s the full story?

Citi notes the stock is aligned with their target and has a balanced risk/reward profile. A concluded patent infringement case has bolstered sentiment, but downside risks include product launches from competitors, rising competition, and margin volatility, especially in the short-term.

M&T Bank

What happened?

On Friday, Wolfe upgraded M&T Bank (NYSE:MTB) to Outperform with a $210 price target.

TLDR:

Wolfe expects M&T Bank to maintain peer-leading NIMs through 2026.

What’s the full story?

Wolfe predicts that M&T Bank will continue to enjoy peer-leading Net Interest Margins until 2026. The bank’s NIM remains unaffected by underwater cash flow swaps, and its noninterest-bearing deposit mix surpasses the averages. Projections suggest a NIM of 3.67% for 2025 and 3.72% for 2026, well above the Mid-Cap Bank averages, confirming Wolfe’s confidence in MTB’s performance.