Thursday’s analyst calls presented a divided of Wall Street sentiment, with several notable upgrades and downgrades emerging as the broader market rallied. The Dow Jones Industrial Average surged 3.03% to close at 53,356, while the S&P 500 gained 1.58% to 7,688 and the Nasdaq rose 1.44% to 25,736. The Russell 2000 also climbed 1.58% to 2,856. The rally followed a Democratic election victory that left a Republican president in the White House through 2028 and Democrats controlling both the House and Senate, a configuration investors often associate with gridlock that can benefit equities.
Upgrades: JetBlue and First Solar Win Favor
Deutsche Bank upgraded JetBlue Airways (NASDAQ: JBLU) to Buy from Hold and nearly doubled its price target to $5.50 from $3. The struggling airline earned a fresh vote of confidence from the analyst community.
First Solar (NASDAQ: FSLR) was upgraded to Outperform from Market Perform at William Blair, though the firm did not provide a price target. The solar giant joined JetBlue on the positive side of Thursday’s revisions.
Cinemark Holdings (NYSE: CNK) also received an upgrade to Overweight from Equal Weight at Morgan Stanley, which set a $50 target price. Joby Aviation (NYSE: JOBY) was raised to Buy from Hold at Canaccord, with a $7 target price down from $11.50. LabCorp of America Holdings (NYSE: LH) was lifted to Buy from Hold at HSBC, which raised its price target to $410 from $206.
Downgrades: Nike and HubSpot Slashed
Truist Financial downgraded Nike (NYSE: NKE) to Sell from Hold with a $29 target price. The athletic apparel giant faced a notably bearish call.
HubSpot (NYSE: HUBS) was cut to Underweight from Neutral at Cantor Fitzgerald, which slashed its price target to $170 from $265. The marketing software company saw one of the steepest target reductions of the day.
Cisco Systems (NASDAQ: CSCO) was downgraded to Equal Weight from Overweight at Barclays, which lowered its target price to $120 from $135. Dollar Tree (NASDAQ: DLTR) was reduced to Hold from Buy at Loop Capital with an unchanged $140 target. Skyworks Solutions (NASDAQ: SWKS) was cut to Equal Weight from Overweight at Barclays, which nonetheless raised its target price to $79 from $70.
New Coverage: Block and SpaceX Initiated
William O’Neil reinstated Block (NYSE: XYZ) with a Buy rating and no target price. The firm also reinstated Cintas Corporation (NASDAQ: CTAS) with a Buy rating and no target price.
Space Exploration Technologies (NASDAQ: SPCX) was started with a Buy rating at China Renaissance and a $194.20 target price. Astera Labs (NASDAQ: ALAB) was initiated with an Outperform rating at BMO Capital and a $375 target price, while ATI (NYSE: ATI) was started with a Buy rating at Citigroup and a $229 target price.
Market Context
The flurry of analyst activity came as investors weighed the implications of a divided government. With Democrats controlling Congress and a Republican in the Oval Office, many market participants anticipate legislative gridlock, a scenario that historically has been viewed as favorable for equities. The Dow’s 3% gain led the major indices, while technology stocks focused on AI and data centers lagged despite the Nasdaq’s overall advance.
Analyst ratings are one input among many, and individual reports should not be the sole basis for investment decisions. Thursday’s mix of upgrades and downgrades illustrates the lack of unanimity on Wall Street even as the broader market celebrated the election outcome.