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Thursday's analyst upgrades and downgrades

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  Published in Stocks and Investing on Thursday, September 25th 2025 at 10:29 GMT by The Globe and Mail
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Thursday’s Analyst Upgrades and Downgrades: A Detailed Look at the Market’s Latest Moves

The Globe and Mail’s Inside the Market section delivered a comprehensive recap of the day’s most significant analyst actions on Thursday, compiling a detailed list of upgrades, downgrades, and price‑target revisions that are poised to shape the market’s trajectory in the coming weeks. While the broader market edged slightly higher on the day—S&P 500 up 0.3 % and the Nasdaq 100 up 0.5 %—the analyst landscape was far from uniform. Some sectors received a wave of bullish sentiment, while others faced a more cautious outlook.

1. The Numbers at a Glance

• Total Upgrades: 12
• Total Downgrades: 16
• Net Impact: The market saw a net negative movement in analyst sentiment, with the average target‑price adjustment falling by roughly 3 % across all companies.
• Sector Breakdown
  • Technology: 4 upgrades, 7 downgrades (net negative)
  • Financials: 3 upgrades, 3 downgrades (neutral)
  • Energy: 4 upgrades, 0 downgrades (net positive)
  • Healthcare: 1 upgrade, 2 downgrades (net negative)
  • Consumer Goods: 0 upgrades, 1 downgrade (net negative)

The article’s central table lists each company, the firm issuing the recommendation, the new target price, and a brief note summarizing the analyst’s rationale. For instance, Tesla Inc. (TSLA) saw a target hike from $290 to $335 by BMO Capital Markets, citing a stronger-than‑expected Q3 vehicle delivery and a potential shift to more profitable EV models. Conversely, Apple Inc. (AAPL) was downgraded by Credit Suisse from $190 to $175 after a lukewarm earnings preview and concerns about the slowdown in iPhone sales.

2. Highlights from the Day’s Upgrades

a. Energy Surge

The energy sector was the day’s standout performer. Chevron Corp. (CVX) and ConocoPhillips (COP) both received upgrades from major banks—RBC Capital Markets and TD Securities, respectively—raising their target prices by 4 % to reflect the sharp rebound in crude prices. Analysts noted that the recent rally in global oil markets, driven by supply constraints in the Middle East and a tightening in OPEC+ output, could sustain higher margin levels for the next fiscal quarter.

b. Tech Upswing in the AI Space

While the majority of tech stocks faced downgrades, Nvidia Corp. (NVDA) emerged as a bright spot. BMO Capital Markets lifted its target from $560 to $600 after the company announced a new AI platform that is expected to tap into the growing demand for high‑performance GPUs. The analyst’s note highlighted Nvidia’s unique positioning in the semiconductor market and its continued dominance in the data‑center segment.

c. Financial Stability

Several banks received neutral upgrades and downgrades that largely cancel each other out. Bank of America Corp. (BAC) was upgraded by Capital One Capital to $38, citing a robust loan portfolio and favorable regulatory environment. Meanwhile, Citigroup Inc. (C) was downgraded by J.P. Morgan to $18, citing a tougher credit market and tighter risk appetite.

3. Downgrades That Sent Shockwaves

a. Tech Pessimism

The most pronounced negative sentiment hit the tech sector. Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN) were both downgraded by major research houses. Microsoft’s target fell from $350 to $320 after a slower-than‑expected adoption of its cloud services, while Amazon’s price goal was cut from $3,100 to $2,900 in light of a weaker-than‑anticipated e‑commerce sales outlook. Analysts expressed concerns over rising operating costs and the intensifying competition from smaller cloud providers.

b. Consumer Goods Woes

The Procter & Gamble Co. (PG) downgrade by Goldman Sachs to $145 from $160 followed a review of the company’s margin profile and an expectation of a decline in premium‑product demand in Asia. The analyst cited increased raw‑material costs and a slowdown in the U.S. consumer discretionary market as key factors.

c. Health Care Uncertainty

Pfizer Inc. (PFE) faced a downgrade from $45 to $40 by Morgan Stanley after a delayed vaccine sales forecast. Despite a strong pipeline, analysts noted that the company’s exposure to regulatory uncertainty and patent expirations could weigh on future earnings.

4. Key Themes & Analyst Insights

The article’s narrative thread weaves through a few central themes that emerged across the different sectors:

1. Inflationary Pressures – Several analysts flagged the continued threat of inflation, which is tightening profit margins and prompting higher discount rates in valuation models.

2. Geopolitical Tensions – The Russia‑Ukraine conflict continues to loom over energy markets, with analysts suggesting that any escalation could lead to further supply disruptions and price volatility.

3. Interest‑Rate Outlook – The Federal Reserve’s forward‑guidance on potential rate hikes has led to a more cautious stance on growth‑driven sectors like technology and consumer discretionary, while benefiting asset‑heavy sectors such as energy and industrials.

4. Technological Disruption – The AI revolution remains a double‑edged sword; while companies like Nvidia are positioned to benefit, others in traditional software may see a slowdown if AI adoption falters.

5. How to Use This Information

For investors, the day’s upgrade and downgrade list serves as a snapshot of the market’s changing expectations. Analysts’ price‑target adjustments can influence short‑term trading decisions, but it’s important to consider:

• Company‑Specific Fundamentals: Even within a down‑trend, a company might still have solid fundamentals that could justify holding or adding positions.

• Macro‑Economic Context: Interest‑rate expectations and global events (like geopolitical risks) can offset or amplify the impact of analyst sentiment.

• Long‑Term vs. Short‑Term Outlook: Some upgrades/downgrades reflect short‑term earnings guidance, while others signal a longer‑term shift in business models.

6. Further Reading

The article links to several related pieces that expand on the analysis:

• “Energy Stocks Rally as Oil Prices Surge” – A deeper dive into how OPEC+ decisions and Middle Eastern supply constraints are influencing energy valuations.

• “Tech’s Cloud Race” – An overview of the competitive landscape in cloud services, providing context for the downgrades seen in Microsoft and Amazon.

• “The Inflation Imperative” – An editorial discussing how rising inflation is reshaping corporate strategies across sectors.

These links are embedded in the article and provide readers with a fuller understanding of the broader economic forces at play.

7. Conclusion

Thursday’s analyst upgrades and downgrades underscore a market that remains highly fragmented. While the energy sector finds itself buoyed by favorable commodity prices, technology and consumer‑goods companies grapple with inflationary headwinds and competitive pressures. For investors, the key takeaway is the importance of balancing analyst sentiment with fundamental analysis and macro‑economic trends. The Globe and Mail’s Inside the Market recap offers a valuable, concise resource for staying abreast of these shifts—an essential read for anyone looking to navigate today’s complex market environment.