Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week.
Adobe
What happened? On Monday, Melius downgraded Adobe Systems Incorporated (NASDAQ:ADBE) to Sell with a $310 price target.
*TLDR: Adobe threatened by AI-first competitors. Melius trims estimates.
What’s the full story? Adobe looks like a giant on quicksand. Melius grows more worried since its June Hold: AI-first tools from Figma, Canva, Runway and the big Clouds (Google, OpenAI, Meta) are eating market share and shrinking marketing seats, so Net New ARR and other “fancy” metrics head south. Adobe says generated content fuels Creative Cloud, but customers—especially younger ones—won’t keep buying an all-you-can-eat Creative Suite when superior, often cheaper AI alternatives exist.
FireFly proves hard to monetize; new subscription tiers read like stealth price hikes that risk pushback as SaaS inflation bites.
Adobe trades at 16x NTM PE (≈19x incl. options) while growth decelerates; Melius sees a credible path to downward revisions and lower multiples if NNARR stalls. Consensus still expects a 10% CAGR to FY27, yet the stock is down 46% since Dec ’23. Melius holds 2H25 estimates but trims FY26 EPS to $22.59 (from $23.02) and revenue to $25.1B (from $25.6B), and FY27 EPS to $23.50 (from $24.86) with revenue at $26.0B (was $27.1B).
Five Below
What happened? On Tuesday, Loop Capital upgraded Five Below Inc (NASDAQ:FIVE) to Buy with a $165 price target.
*TLDR: Street asleep. Load up
What’s the full story? Loop believes the street is dead wrong on Five Below. New CEO Winnie Park’s pricing and merchandising shifts aren’t priced in. Plus, shrink relief is coming in H2 ’25. Despite the YTD rally, the stock’s still cheap—trading at 24x revised F2026 EPS, a discount to its 10-year historical NFY P/E and peers like Floor & Decor and Ollie’s.
The firm slaps a $165 target on FIVE—just 30x F2026 EPS. That’s still below comps.
Current levels? A gift. Load up.
SailPoint
What happened? On Wednesday, JPMorgan upgraded Sailpoint Inc (NASDAQ:SAIL) to Overweight with a $26 price target.
*TLDR: SAIL undervalued—technical moat, high growth.
What’s the full story? JPM sees opportunity in SAIL—a best-of-breed leader trading below fair value. The bank believes the recent lockup expiration presents a rare chance to own a superior identity platform at a discount.
As legacy vendors struggle with outdated tech, SailPoint’s strong technical moat and execution position it to consolidate market share in a high-growth space.
The bank upgrades SAIL to Overweight—valuation lags peers despite best-in-class growth. Trading below high-growth security competitors, SailPoint is poised for rerating as margins expand and free cash flow improves.
JPM sees a clear path for SAIL to reclaim its premium. Buy while it’s cheap.
Kratos
What happened? On Thursday, BTIG upgraded Kratos Defense & Security Solutions (NASDAQ:KTOS) to Buy with a $80 price target.
*TLDR: KTOS unlocked – Pentagon cash incoming. Drones, hypersonics, buy now.
What’s the full story? BTIG has long warned that KTOS was missing one thing: a fat Pentagon contract to juice volumes. But that changes now. The Marine Corps just downselected them for MUX TACAIR, with FY2026 funding locked and $8.8B in unmanned spending looming. The firm’s Unmanned Systems (KUS) division is about to enter hypergrowth.
And that’s just the start. Hypersonics, C5ISR, Microwave Electronics, Turbine Tech—every segment is flashing upside. The stock trades like another sleepy defense play while management quietly primes the pump. BTIG upgrades to Buy ($80 PT). The drones are coming. The money’s already here. Position or get left behind.
Wingstop
What happened? On Friday, Raymond James upgraded Wingstop Inc (NASDAQ:WING) to Strong Buy with a $420 price target.
*TLDR: WING rides the rollercoaster, but the kitchen is on fire
What’s the full story? WING shares ripped from $290 to $380 post-2Q results, only to bleed $55 in the last two weeks. The analysts at Raymond James blame choppy third-party data muddying 3Q comps (RJ est. -0.5% vs. consensus flat). But comps should rebound by September as comparisons ease—September’s hurdle is 10% softer than July/August, and 4Q another 10% easier.
Smart Kitchen isn’t just a gimmick—it’s printing money. The proprietary KDS system is demolishing paper tickets, with early wins: 550bp comp outperformance vs. franchisees, Dallas delivery crushing the U.S. average, ticket times slashed to 10 minutes (vs. 20+), and delivery speeds hitting sub-30 minutes. Guest scores? Up 8pts. And the 2026 loyalty program? More fuel for the comp engine.
At current levels, the stock’s a steal—2026 EV/EBITDA at ~34x, with 30% upside to their $421 DCF target. This is a franchise machine: 70%+ cash-on-cash ROI, 2,000+ units in the pipeline, and high-teens EBITDA growth locked in. Buckle up.
Source :
https://www.investing.com/news/stock-market-news/street-calls-of-the-week-4196512
