Investing.com – Here’s a professional summary of the top takeaways from Wall Street analysts from the last week: Improvements for Best offer , Lululemon and Collegium Pharma; downgrade for Maxeon Solar and Medifast.

InvestingPro subscribers are always the first to hear about market-changing ratings changes.

Best offer

What happened? On Monday, Citi upgraded Best Buy (NYSE:) twice to Buy with a $100 price target.

What’s the full story? Citi doubles BBY stock price from sell to buy. The research team believes that the catalyst path looks positive from here on out, with upside potential for both earnings and valuation. This is based on ongoing technology replacement cycles, recent AI innovations ensuring growing demand and continued solid margin execution.

Last week’s 1QF25 earnings print proved that GM’s results remain best-in-class, with company-specific drivers able to offset external pressures such as increased promotional activity. Simply put, it was a change in the thesis from Citi’s earlier negative thesis. The research team sees the risk of 2H SSS in the face of consumer uncertainty (pre-election distractions and shortened holiday calendar).

However, Citi believes it is prudent to look to future multi-year opportunities as the company returns to growth and an attractive margin expansion story develops. The research team raises TP to $100 (from $67) based on higher EPS estimates (based on sales and margin) and an increased target multiple of 14x 2026 EPS.

Buy at Citi means “Buy (1) ETR at 15% or more, or 25% or more for high-risk stocks.”

How did the stock markets react? Best Buy opened the session at a regular price of $85.96 and closed at $86.94, an raise of 2.50% from the previous day’s regular close.

Maxeon solar technologies

What happened? On Tuesday, Goldman Sachs downgraded Maxeon Solar Technologies Ltd (NASDAQ:) twice to sell with a $1 price target

What’s the full story? Goldman Sachs changed its position on MAXN after the company’s results reports for 4Q23 and 1Q24 published on May 30. The report found that both gross margin and EBITDA were lower than GSe/Factset consensus expectations, leading to weaker-than-expected guidance for the second quarter and full year 2024. Additionally, MAXN has not yet secured a DOE loan and, in a surprising move, announced an investment capital from TZE. This investment, combined with the debt restructuring plan, is expected to significantly change MAXN’s capital structure. The proposed issue of recent shares will likely dilute the value for existing shareholders, as after the transaction TZE’s share is expected to exceed 50.1% and almost 350 million convertible shares will become vigorous.

The Goldman Sachs research team notes that while equity investments and debt restructuring should ease liquidity concerns in complex market conditions, increased uncertainty remains regarding future financing, including the DOE loan guarantee. Given a combination of market weakness, cushioned guidance, future capacity expansion and schedule risks, as well as uncertainty and potential risk of capital structure dilution as MAXN’s liquidity issues are resolved, Goldman Sachs downgraded MAXN from Buy to Sell. The company also adjusted its 12-month price target for MAXN to $1, which represents a 46% decline from its previously expected upside of approximately 22% for the range.

Sell ​​at Goldman means: “The assignment of a call or put option on an investment list depends on the total return potential of the stock relative to its coverage.”

How did the stock markets react? Maxeon Solar Technologies opened the session at a regular price of $1.76 and closed at $1.75, marking a decline of 5.41% from the previous day’s regular close.

Medifast

What happened? On Wednesday, DA Davidson downgraded Medifast (NYSE:) to Underperform with a $17.50 price target

What’s the full story? The downgrade follows a meeting with Medifast that resulted in a change to revenue forecasts, with a sequential flattening now expected in the first quarter of 2025 rather than the fourth quarter of 2024. As a result, estimated sales for 2025 declined 5% year-over-year, and forecast earnings per share (EPS) were reduced by 29%.

Medifast’s advertising campaign for its GLP-1 offering, originally scheduled for June, has been postponed to July. The impact of these ads on customer acquisition won’t be revealed until November. Given the company’s stock is down 64% year-to-date, DA Davidson suggests the possibility of further decline. Medifast’s current marketing spend (5-6% of sales) is significantly lower than its weight loss and telehealth competitors (25-50% of sales), raising concerns about its competitive position

DA Davidson’s penniless performance means: “We are expected to decline in value by more than 15% on a risk-adjusted basis over the next 12-18 months.”

How did the stock markets react? Medifast opened the session at a regular price of $20.43 and closed at $22.02, down 8.30% from the previous day’s regular close.

Lululemon

What happened? On Thursday, HSBC made an update Lululemon Athletic Inc (NASDAQ:) Buy with a $425 price target.

What’s the full story? HSBC analysts say Lululemon has experienced remarkable stock growth, but has faced challenges after hitting a record high in January 2024. Doubts about the resiliency of North American growth raised concerns, and the company’s March guidance fell miniature of consensus expectations, a significant departure from its consistent beat-and-raise pattern. As a result, stocks are down 40% year-to-date, contrasting with the more stable sporting goods sector.

While America’s first-quarter comparable sales remained flat, some of the problems were self-inflicted due to stock shortages in a variety of colors and sizes, particularly for women’s products. However, global comparable sales increased 7%, driven by sturdy performance in mainland China and other international markets. While the Americas still account for 73% of group sales, the surge in international sales suggests a potential scenario where international revenues reach half of the group’s business.

Despite restricted earnings revisions, the recent multiple compression has led to stocks that analysts consider overly penalized

How did the stock markets react? Lululemon opened the session at $337.23 and closed at $323.03, up 4.91% from the previous day’s regular close.

College of Pharmacy

What happened? Jefferies made an update on Friday College of Pharmacy Inc (NASDAQ:) Buy with a $44 price target.

What’s the full story? Jefferies expressed a more bullish view on COLL, which is currently trading at just 4x EBITDA following the CEO’s departure. The company believes that the risk/reward ratio is positive. Several factors contribute to this bullish view. First, Jefferies notes that Q2 trends appear sturdy and consensus EBITDA is likely too low. Secondly, the company believes that the benefits of LOE (base case) are underestimated.

Additionally, Jefferies highlights the significant cash generation expected through 2028, predicting that net cash will eclipse market capitalization at F28. As a result of these factors, the company upgraded COLL to Buy with a $44 price target. This target is based on equal weighting of 5xC25 adjusted EBITDA and DCF analysis. Despite recent management changes, Jefferies sees potential for growth and profitability in COLL’s future.

Buy at Jefferies means “Describes securities that we believe will provide a total return (price appreciation plus yield) of 15% or more over a 12-month period.”

How did the stock markets react? Collegium Pharma opened the session at the regular price of $32.62 and closed at $33.19, representing an raise of 5.84% from the previous day’s regular close.