Story
Analyst Upgrades Target T-Mobile, First Solar, and Occidental Petroleum
Several prominent Wall Street firms upgraded major U.S. companies this week, citing factors ranging from mispriced valuations to strengthening underlying business fundamentals. The analyst actions spanned telecommunications, renewable energy, oil and gas, retail, and homebuilding sectors.
T-Mobile Upgraded on Competitive Strength
BofA Securities upgraded T-Mobile (NASDAQ:TMUS) to Buy from Neutral on Monday, maintaining a $220 price target. Analysts at the firm argued that market fears over peak competition, particularly from low Earth orbit (LEO) satellite broadband, are overstated.
According to BofA, T-Mobile's business is insulated from this threat due to its dominant 50% market share in dense urban areas, where LEO satellite signals face significant technical limitations. The firm also highlighted T-Mobile's pricing power, noting that its low-priced legacy plans provide flexibility to increase rates and support its forecast for 2.5% to 3% growth in postpaid average revenue per account (ARPA).
Deutsche Bank Sees Opportunity in First Solar
On Tuesday, Deutsche Bank upgraded First Solar (NASDAQ:FSLR) to Buy with a $272 price target. The upgrade followed a 27% decline in the company's stock since June 1, which the bank's analysts described as creating a "deeply mispriced" entry point for investors.
Deutsche Bank emphasized First Solar's strong financial position, including a $2.1 billion net cash balance. The firm pointed to a significant valuation gap, noting that First Solar trades at just 7x its estimated 2027 EV/EBITDA, compared to a clean technology sector average of 15x. Analysts expect this discount to narrow as earnings normalize and regulatory clarity emerges from upcoming Section 232 tariff decisions.
AdEvercore Turns Positive on Occidental Petroleum
Evercore upgraded Occidental Petroleum (NYSE:OXY) to Outperform on Wednesday, setting a $65 price target. The firm's analysts believe the stock is poised to better reflect underlying oil prices after a period of underperformance relative to crude and its large-cap peers.
The key catalyst, according to Evercore, is a combination of a de-levered balance sheet and a "structural step-up in capital efficiency" that improves the company's free cash flow generation. While not a high-growth story, the firm sees the market as discounting these efficiency gains, which could support the restart of a stock buyback program by late 2028.
Other Key Analyst Calls
- Five Below (NASDAQ:FIVE): Mizuho upgraded the discount retailer to Outperform with a $220 price target. Analysts view the stock's recent 30% drop as an overreaction, pointing to strong unit economics as average store volumes trend toward $3 million.
- Toll Brothers (NYSE:TOL): Citi upgraded the luxury homebuilder to Buy with a $176 price target. The firm is betting on the resilience of the high-end housing market, positioning Toll Brothers to outperform as the market looks toward a modest recovery in 2027.