Tuesday brought a wave of optimism from Wall Street's research desks, with five companies earning upgraded ratings from major analysts. Here's what changed and why these stocks are suddenly looking more attractive to the pros.
Brinker International Gets the Green Light
Citigroup analyst Jon Tower turned bullish on Brinker International Inc (EAT), upgrading the restaurant operator from Neutral to Buy. The new price target of $176 represents a solid jump from the previous $144 target. Brinker shares were trading at $150.61 on Tuesday, suggesting the analyst sees meaningful upside ahead.
Tech and Entertainment Get Some Love
UBS analyst Timothy Arcuri upgraded Applied Materials Inc (AMAT) from Neutral to Buy, raising the price target from $250 to $285. The semiconductor equipment maker was trading at $234.22 on Tuesday, leaving room for appreciation if Arcuri's thesis plays out.
Meanwhile, Goldman Sachs analyst Mike Burton had a change of heart on Imax Corp (IMAX), flipping his rating from Sell all the way to Neutral. That's not exactly a ringing endorsement, but the price target jump from $22 to $34 is notable—especially with shares trading at $36.81 on Tuesday.
Real Estate and Biotech Round Out the List
Barclays analyst Richard Hightower upgraded AvalonBay Communities Inc (AVB) from Equal-Weight to Overweight. Here's the interesting bit: he actually lowered the price target from $229 to $216, yet still got more bullish on the stock. With shares trading at $183.03 on Tuesday, that lowered target still implies decent upside. Sometimes analysts reset targets to reflect market realities while still believing the stock will outperform.
Rounding out Tuesday's upgrades, Jefferies analyst David Stanton moved Mesoblast Ltd (MESO) from Hold to Buy. The biotech company's shares were changing hands at $16.05 on Tuesday.
These rating changes reflect shifting analyst sentiment across industries—from casual dining and real estate to biotech and semiconductor equipment. Whether these upgrades prove prescient depends on how the underlying businesses execute in the coming quarters.