Street Calls of the Week

Investing.com -- Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week.

Jefferies

What happened? On Monday, Morgan Stanley downgraded Jefferies Financial Group Inc (NYSE:JEF) to Equal-weight with a $49 price target.

*TLDR: JEF: Legal mess, credit concerns kills the premium.

What’s the full story? Morgan Stanley abandons the pretense of earnings. In a world of "idiosyncratic" legal messes and credit jitters, the firm swaps its rose-colored P/E glasses for the cold, hard floor of Price-to-Tangible Book. The price target hits the deck at $49, downgraded to Equal-weight. It turns out that when the bill for lawyers and consultants arrives, the "synergies" usually exit through the back window.

The firm slashes 1Q26 EPS by 20% to $0.81. Revenue is bleeding across advisory and fixed income, partially masked by a desperate hustle in equities. Morgan Stanley observes that while a 13% ROTCE sounds like a respectable living, it only buys a 1.3x multiple in this climate. The Bull Case dreams of $70, but the Bear Case—a grim 0.7x P/TBV at $27—reminds me that truth is often stranger than fiction, and usually more expensive.

Hims & Hers

What happened? On Tuesday, BofA upgraded Hims Hers Health Inc (NYSE:HIMS) to Neutral with a $23 price target.

*TLDR: Novo settlement unlocks HIMS valuation upside.

What’s the full story? BofA upgrades HIMS from Underperform to Neutral and nearly doubles the price objective from $12.50 to $23, driven by Novo Nordisk dropping its Wegovy lawsuit. This settlement eliminates the primary litigation and credit risk that previously throttled the stock’s multiple, allowing the valuation to reflect GLP-1 revenue contributions at a 23x CY26E EV/EBITDA multiple.

While the team remains significantly below Street consensus on 2026/2027 revenue and EBITDA, the risk/reward is now balanced at current levels. The removal of legal pressure provides a clearer path forward, even if future multiple expansion from potential pharmaceutical deals is offset by earnings downside.

NIO Inc.

What happened? On Wednesday, Normura upgraded NIO Inc (HK:9866) to Buy with a $6.60 price target.

*TLDR:

What’s the full story? Nomura finally finds religion on NIO, upgrading the perennial cash-burner to Buy as shipments actually start to resemble a "healthy business cycle." The analysts cut the price target to $6.60, but in this market, a 34% upside is practically a dividend from Providence.

It turns out that if you build enough cars and squint at the margins, the math almost works.

The team raises GPM and OPM forecasts, hallucinating a non-GAAP operating breakeven by FY26. While Nomura trims shipment estimates to reflect the "challenging environment"—a polite term for the current economic shipwreck—they still bank on a 25% CAGR. At a 0.7x forward P/S, the valuation is too cheap to ignore, even if the DCF is held together by a 1.5% terminal growth prayer.

Buy the dip, or the delusion. Whatever helps ya sleep at night mate.

CVS Health

What happened? On Thursday, Bernstein upgraded CVS Health Corp (NYSE:CVS) to Outperform with a $94 target.

*TLDR:

What’s the full story? The intelligent investor knows that clarity often follows the storm. Bernstein brings CVS to the table and wagers that the fog of pharmacy benefit manager (PBM) reform is finally lifting.

With a recent legislative "clearing event" and FTC settlements in the rearview, the path for the healthcare giant looks uncommonly straight.

The bank projects a renaissance at Aetna, where earnings could nearly double over three years as Medicare Advantage margins return to sanity. While 2026 remains a slog of lingering PBM pressures, Bernstein forecasts a 9% EPS CAGR through 2029.

At a modest 12x multiple, the bank suggests the market is underpricing a turnaround that is finally rooted in discipline rather than hope.

PagerDuty

What happened? On Friday, William Blair downgraded Pagerduty Inc (NYSE:PD) to Market Perform.

*TLDR: Blair sees no catalyst; risk-reward balanced.

What’s the full story? The analyst at William Blair sticks PagerDuty in the penalty box, downgrading the stock to Market Perform after a disastrous fourth quarter. ARR growth limps in at a pathetic $2 million sequentially, while net retention slips to a dismal 98%. Management blames "seat-based headwinds," but the reality looks more like a point-solution getting cannibalized by the big platforms.

The outlook for fiscal 2027 is a flatline, killing any hope for the 4% growth the Street expected.

While the valuation sits at a steep discount to SaaS peers, William Blair sees no catalyst to spark a rally. The company is fumbling through a transition to usage-based pricing while larger predators encroach on its territory. PagerDuty might have a "best-in-class" tool, but in a market that demands growth, flat margins and zero revenue expansion are a tough sell.

Until management executes a miracle, the risk-reward remains stuck in neutral.