Top analyst highlights key choices for this week: Caterpillar, Palo Alto, and Hewlett Packard Enterprise stand out as top selections
In the world of finance, several notable changes have occurred over the past week. Here's a roundup of some significant upgrades, downgrades, and market movements.
Healthcare Sector
UBS has upgraded CVS Health to a 'Buy' rating, with a revised price target of $79, up from $67. The move comes after UBS believes that CVS has executed well over the past two quarters, and the Healthcare Benefits segment fixes are on track.
Technology Sector
Palo Alto Networks (PANW) has seen a positive outlook, with Morgan Stanley suggesting a potential 22% upside, setting a price target of $215. This upgrade comes after Bank of America upgraded PANW following better-than-expected quarterly results and guidance. However, KGI Securities has expressed concern about potential competition in the custom application-specific integrated circuit market for Marvell Technology.
Industrial Sector
Caterpillar (CAT) has been upgraded to 'Outperform' by Evercore, with a price target of $476. The upgrade is based on improving margin dynamics and signs of reduced discounting, as highlighted by Evercore's David Raso.
Technology and Acquisition
Hewlett Packard Enterprise (HPE) was upgraded to 'Overweight' by Morgan Stanley due to its Juniper acquisition. With the closure of Juniper, Morgan Stanley sees 18% upside to FY26 consensus EPS for HPE. Morgan Stanley also reiterated its 'Overweight' rating on Dell and increased its price target to $144 from $135.
Forecasts and Expectations
Morgan Stanley expects EPS for HPE to grow to $2.70-3.00 in FY27. KeyBanc Capital Markets raised its price target on Nvidia to $215 from $190, while Susquehanna analyst Christopher Rolland also upped PT to $210 from $180 on Nvidia.
Market Performance
The S&P500 (SP500) closed in the green on Friday, but the Dow Jones Industrial Average (DJI) fell 0.3% for the week. The Nasdaq (COMP:IND) lost over 2% for the week.
Notable Downgrades
KGI Securities downgraded Marvell Technology to 'Neutral' from 'Outperform' and lowered its price target to $75 from $95. Ladenburg Thalmann double downgraded Nano Nuclear Energy to 'Sell' from 'Buy' with a $9 price target.
Investment Firm Moves
Morgan Stanley has upgraded Wynn Resorts last week due to improved outlooks, and has lowered its stake in Solvay S.A. below 3% as of August 21, 2025, due to disposal of financial instruments. Additionally, Morgan Stanley confirmed a rating with a raised price target for Nvidia, reflecting confidence in its growth acceleration.
These updates provide a snapshot of the recent shifts in the market and the strategic decisions of key investment firms. Stay tuned for more updates as the market continues to evolve.
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