Wall Street Downgrades Coty, Initiates Spruce Biosciences Coverage
Wall Street analysts are actively reshaping investment recommendations, and today’s research call activity reveals a significant shift in sentiment across several sectors. This compilation, sourced from The Fly, highlights key upgrades and downgrades that are drawing investor attention. Several firms have issued upgrades, while others have lowered their ratings, reflecting evolving market perspectives. Notable upgrades include TD Cowen’s elevation of Ametek (AME) to a Buy rating from a Hold, accompanied by a price target increase to $230. The investment firm attributes this upgrade to Ametek’s sustained high backlog, anticipating continued growth in orders and revenue. Piper Sandler also initiated positive activity, upgrading SEI Investments (SEIC) to an Overweight rating and raising the price target to $102, driven by the expectation that SEI will benefit from the expanding landscape of alternative investments. CFRA’s positive stance on Pool Corp. (POOL), upgraded to a Buy rating with a price target of $304, reinforces this bullish trend.
Conversely, several downgrades underscore a more cautious approach within the market. Evercore ISI lowered its rating on Coty (COTY) to In Line from Outperform, maintaining a price target of $7. The firm’s assessment centers on the diminished visibility surrounding Coty’s CEO, Nabi, and the lack of clear catalysts for potential value unlocks. Grupo Santander mirrored this view, downgrading Coty to Neutral with a price target of $3.50. BMO Capital Markets also took a cautious step, downgrading Brown & Brown (BRO) to Market Perform from Outperform, adjusting the price target downward to $88, reflecting concerns about downward pressure on consensus organic growth estimates for 2026. Piper Sandler similarly lowered its outlook on Clearwater Analytics (CWAN), reducing the rating to Neutral and the price target to $24.55, following the company’s announcement of a cash acquisition by a Permira and Warburg Pincus-led investor group at $24.55 per share. TD Cowen’s rating on Janus Henderson (JHG) was reduced to Hold from Buy with a price target of $49 following the company’s agreement to be acquired by Trian and General Catalyst in an all-cash transaction valued at $7.4 billion, or $49.00 per share.
Beyond these established firms, several new coverage initiations signaled enthusiasm for specific companies. Oppenheimer initiated coverage of Spruce Biosciences (SPRB) with an Outperform rating and a price target of $283, citing the FDA’s confirmation of positive biomarker data and a recent Breakthrough Therapy designation that bolster the firm’s conviction regarding an anticipated approval for Sanfilippo type B syndrome. LifeSci Capital initiated coverage of Sionna Therapeutics (SION) with an Outperform rating and a price target of $60, highlighting the company’s “multiple quality shots on goal” including SION-719 as an add-on NBD1 stabilizer alongside existing therapies and the company’s dual-combination therapies, SION-451/SION-2222 and SION-451/SION-109. JonesResearch initiated coverage of Septerna (SEPN) with a Buy rating and a price target of $43, forecasting substantial peak sales potential for the company’s SEP-479 program for hypoparathyroidism with a Phase 1 initiating in the first half of 2026, projecting $2.5B in unadjusted U.S. peak sales in 2035. Finally, Loop Capital initiated coverage of Atai Beckley (ATAI) and Mind Medicine (MNMD) with Buy ratings. Additionally, Loop Capital initiated coverage of Malibu Boats (MBUU) with a Buy rating and a price target of $34, noting a period of “significant inventory rationalization” in the marine industry that is nearing completion. The firm also initiated coverage of Brunswick (BC) and MasterCraft (MCFT) with Hold ratings.
