Goldman Sachs Upgrades Chime to Buy with $27 Price Target
The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.Top 5 Upgrades:Goldman Sachs upgradedChimeto Buy from Neutral with a price target of $27, up from $26, which offers 28% upside. The firm believes the market is underappreciating the take rate tailwinds from Chime's new Chime Card.BNP Paribas Exane upgradedToastto Outperform from Neutral with a $40 price target. While competition in point-ot-sale software for restaurants is accelerating, Toast's leadership is intact, the firm tells investors in a research note.B. Riley upgradedKratos Defenseto Buy from Neutral with an unchanged price target of $105. The firm sees a favorable risk/reward at current share levels, saying Kratos has "ample proprietary" intellectual property "enabling an array of affordable solutions."JonesResearch upgradedSpyre Therapeuticsto Buy from Hold with a $64 price target. Ahead of updates in 2026, the firm believes the stock's risk/reward "now skews positive."TD Securities upgradedNew Goldto Buy from Hold with a price target of $12, up from $7.50. The firm cites the proposed all-stock acquisition by Coeur Miningfor the upgrade.Top 5 Downgrades:Bernstein downgradedZscalerto Market Perform from Outperform with an unchanged price target of $264. While Zscaler continues to perform well, the company's fiscal Q1 report "added narrative issues" regarding 2026 annual recurring revenue guidance, driving concerns about increased competition, the firm tells investors in a research note.Baird downgradedTitan Machineryto Neutral from Outperform with a price target of $21, down from $24. The firm says further declines in both the company's U.S. and Europe businesses will pressure its earnings and book value.Barclays downgradedCrown Castleto Equal Weight from Overweight with a price target of $101, down from $104. The firm says collecting rent from EchoStar may prove challenging for the tower companies.Evercore ISI downgradedVICI Propertiesto In Line from Outperform with a price target of $32, down from $36. The firm has growing concerns over the regional gaming lease with Caesarsand how a low coverage ratio gets resolved.RBC Capital downgradedPTC Therapeuticsto Sector Perform from Outperform with a price target of $91, up from $82. With the shares rallying nearly 75% in the past three months, RBC's thesis has mostly played out, the firm tells investors in a research note.Top 5 Initiations:UBS initiated coverage ofCarvanawith a Buy rating and $450 price target. The firm says the company has a "differentiated, best-in-class" online platform and customer experience that positions it to gain share in the large used vehicle market.Benchmark initiated coverage ofCal-Maine Foodswith a Buy rating and $100 price target. While the Cal-Maine name is well-known, the firm believes its valuation is "over-indexed to its legacy as a commodity producer" and discounts sweeping changes throughout the egg category and Cal-Maine's subsequent mix shift to more valuable specialty production.Goldman Sachs initiated coverage ofBeta Technologieswith a Buy rating and $47 price target. The firm views Beta as best positioned among the electric vertical take-off and landing companies. Citi, BTIG, Cantor Fitzgerald, BofA, Morgan Stanley, and Needham also started the name with Buy-equivalent ratings.JPMorgan initiated coverage ofBillionToOnewith an Overweight rating and $150 price target. The firm likes the setup for the stock, saying the company will continue to build out its commercial infrastructure to capture growing demand in both prenatal and oncology. Piper Sandler, BTIG, William Blair, and Stifel also started coverage of the stock with Buy-equivalent ratings, while Jefferies and Wells Fargo initiated the name with Neutral-equivalent ratings.Morgan Stanley initiated coverage ofEvommunewith an Overweight rating and $36 price target. The firm sees a favorable risk/reward for the shares despite the data for EVO756 and EVO301 being early. William Blair, Cantor Fitzgerald, Leerink, and Evercore ISI also started the name with Buy-equivalent ratings.
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Geopolitical Conflict Boosts Drone Demand
- Drone Market Growth: Analysts indicate that the Ukraine-Russia war has driven demand for drone systems, which is expected to enhance the sector's attractiveness, particularly as U.S. investment in unmanned systems increases.
- Rising Demand for Counter-Drone Tech: With Iran deploying low-cost long-range drones against U.S. targets, BTIG analysts note that production and distribution of counter-drone systems are increasing to address escalating threats, with AeroVironment and Leonardo DRS positioned as primary beneficiaries.
- Increased Defense Budget: The fiscal 2025 National Defense Authorization Act raised the budget for counter-drone programs by approximately $336 million, reflecting the U.S. government's commitment to unmanned systems, especially in countering emerging threats.
- Optimistic Market Outlook: AeroVironment is projected to capture hundreds of millions in market opportunities, particularly after the U.S. military selected its counter-drone systems, and analysts' strong buy ratings reflect confidence in the company's future growth prospects.
Military Escalation Benefits Drone and Missile Suppliers
- Beneficiary Identification: KeyBanc Securities highlights that drone, missile, and hypersonic system suppliers are set to benefit directly from the military escalation between the U.S., Israel, and Iran, particularly following the strikes on Iranian nuclear facilities in mid-2025, which are expected to increase market demand.
- Optimistic Industry Outlook: Analyst Michael Leshock notes that while the deployment of U.S. ground forces remains uncertain, any prolonged conflict could provide additional upside for the aerospace and defense sector, especially in unmanned systems and missile production.
- Potential Winners: The report specifically names AeroVironment, Kratos Defense, and Karman Holdings as companies well-positioned due to their roles in loitering munitions and advanced defense systems, anticipating incremental demand in a heightened geopolitical environment.
- Risks and Uncertainties: Despite identifying potential sector winners, KeyBanc emphasizes that its ratings and financial estimates remain unchanged, as a broad de-escalation of global tensions, cuts to defense budgets, or shifts in technology and contract awards could limit the upside potential for these companies.
Trump Declares U.S. Munitions Stockpiles 'Unlimited'
- Military Readiness: Trump emphasized on social media that the U.S. possesses a 'virtually unlimited supply' of medium and upper-medium grade munitions, indicating strong military capabilities to address ongoing conflicts and aiming to restore public confidence in the military.
- Impact of Escalating Conflict: As U.S.-Israeli military actions against Iran intensify, investor interest in defense and drone-related stocks has surged, reflecting strong market expectations for the demand for unmanned systems.
- Surge in Drone Stocks: Amid geopolitical tensions, drone stocks like KTOS, ONDS, and RCAT have gained attention, with analysts noting that drone attacks have become a primary weapon in modern warfare, driving demand for counter-drone systems.
- Increased Investor Confidence: Experts suggest that sustained Pentagon investment in unmanned systems has led to an optimistic outlook for drone-related companies, although high market volatility remains, requiring investors to navigate cautiously.
The Iran Conflict Escalates, Yet Not All Defense Stocks Are Increasing. Here's the Reason.
- Defense Stocks Performance: Defense stocks continued to rise on Tuesday, showing resilience amid broader market selloffs.
- Market Context: This increase in defense stocks coincides with the ongoing conflict in the Middle East, which has now entered its fourth day.
Northrop Shares Rise While General Dynamics Falls as Defense Market Becomes More Selective
- Defense Stocks Performance: Many defense stocks saw gains on Tuesday despite a broader market selloff amid ongoing Middle East conflict.
- Market Dynamics: The performance of defense stocks varied, indicating that merely producing weapons is not sufficient for sustained financial success.
Israel ETFs Surge Amid Optimism Over War Resolution
- Israeli Market Rally: The TA-35 index, which tracks the largest stocks on the Tel Aviv Stock Exchange, rose 4.6% on Monday, while the broader TA-125 increased by 4.75%, indicating investor optimism likely tied to expectations of a short resolution to the ongoing conflict.
- Strong ETF Performance: The iShares MSCI Israel ETF (EIS) surged 5.5% on Monday, reaching a new high, and has gained 131% since the October 7 attack, reflecting robust market confidence in Israel's economic recovery amidst geopolitical tensions.
- Defense Sector Growth: The iShares U.S. Aerospace & Defense ETF (ITA) jumped 2.8% on Monday and is up 16.7% year-to-date, highlighting sustained investor interest in defense spending, particularly in light of current geopolitical uncertainties.
- Rising Oil Prices Impact: Both Brent and West Texas Intermediate crude futures rose over 6%, with Brent up 17% in the past month, which could have significant implications for the global economy and related sectors, especially energy and transportation.
Geopolitical Conflict Boosts Drone Demand
- Drone Market Growth: Analysts indicate that the Ukraine-Russia war has driven demand for drone systems, which is expected to enhance the sector's attractiveness, particularly as U.S. investment in unmanned systems increases.
- Rising Demand for Counter-Drone Tech: With Iran deploying low-cost long-range drones against U.S. targets, BTIG analysts note that production and distribution of counter-drone systems are increasing to address escalating threats, with AeroVironment and Leonardo DRS positioned as primary beneficiaries.
- Increased Defense Budget: The fiscal 2025 National Defense Authorization Act raised the budget for counter-drone programs by approximately $336 million, reflecting the U.S. government's commitment to unmanned systems, especially in countering emerging threats.
- Optimistic Market Outlook: AeroVironment is projected to capture hundreds of millions in market opportunities, particularly after the U.S. military selected its counter-drone systems, and analysts' strong buy ratings reflect confidence in the company's future growth prospects.
Military Escalation Benefits Drone and Missile Suppliers
- Beneficiary Identification: KeyBanc Securities highlights that drone, missile, and hypersonic system suppliers are set to benefit directly from the military escalation between the U.S., Israel, and Iran, particularly following the strikes on Iranian nuclear facilities in mid-2025, which are expected to increase market demand.
- Optimistic Industry Outlook: Analyst Michael Leshock notes that while the deployment of U.S. ground forces remains uncertain, any prolonged conflict could provide additional upside for the aerospace and defense sector, especially in unmanned systems and missile production.
- Potential Winners: The report specifically names AeroVironment, Kratos Defense, and Karman Holdings as companies well-positioned due to their roles in loitering munitions and advanced defense systems, anticipating incremental demand in a heightened geopolitical environment.
- Risks and Uncertainties: Despite identifying potential sector winners, KeyBanc emphasizes that its ratings and financial estimates remain unchanged, as a broad de-escalation of global tensions, cuts to defense budgets, or shifts in technology and contract awards could limit the upside potential for these companies.
Trump Declares U.S. Munitions Stockpiles 'Unlimited'
- Military Readiness: Trump emphasized on social media that the U.S. possesses a 'virtually unlimited supply' of medium and upper-medium grade munitions, indicating strong military capabilities to address ongoing conflicts and aiming to restore public confidence in the military.
- Impact of Escalating Conflict: As U.S.-Israeli military actions against Iran intensify, investor interest in defense and drone-related stocks has surged, reflecting strong market expectations for the demand for unmanned systems.
- Surge in Drone Stocks: Amid geopolitical tensions, drone stocks like KTOS, ONDS, and RCAT have gained attention, with analysts noting that drone attacks have become a primary weapon in modern warfare, driving demand for counter-drone systems.
- Increased Investor Confidence: Experts suggest that sustained Pentagon investment in unmanned systems has led to an optimistic outlook for drone-related companies, although high market volatility remains, requiring investors to navigate cautiously.
The Iran Conflict Escalates, Yet Not All Defense Stocks Are Increasing. Here's the Reason.
- Defense Stocks Performance: Defense stocks continued to rise on Tuesday, showing resilience amid broader market selloffs.
- Market Context: This increase in defense stocks coincides with the ongoing conflict in the Middle East, which has now entered its fourth day.
Northrop Shares Rise While General Dynamics Falls as Defense Market Becomes More Selective
- Defense Stocks Performance: Many defense stocks saw gains on Tuesday despite a broader market selloff amid ongoing Middle East conflict.
- Market Dynamics: The performance of defense stocks varied, indicating that merely producing weapons is not sufficient for sustained financial success.
Israel ETFs Surge Amid Optimism Over War Resolution
- Israeli Market Rally: The TA-35 index, which tracks the largest stocks on the Tel Aviv Stock Exchange, rose 4.6% on Monday, while the broader TA-125 increased by 4.75%, indicating investor optimism likely tied to expectations of a short resolution to the ongoing conflict.
- Strong ETF Performance: The iShares MSCI Israel ETF (EIS) surged 5.5% on Monday, reaching a new high, and has gained 131% since the October 7 attack, reflecting robust market confidence in Israel's economic recovery amidst geopolitical tensions.
- Defense Sector Growth: The iShares U.S. Aerospace & Defense ETF (ITA) jumped 2.8% on Monday and is up 16.7% year-to-date, highlighting sustained investor interest in defense spending, particularly in light of current geopolitical uncertainties.
- Rising Oil Prices Impact: Both Brent and West Texas Intermediate crude futures rose over 6%, with Brent up 17% in the past month, which could have significant implications for the global economy and related sectors, especially energy and transportation.
