Street Calls of the Week

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

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Disney (NYSE:DIS)

What happened? On Monday, Jefferies upgraded Disney to Buy with a $144 price target.

*TLDR: Jefferies upgrades Disney; parks, DTC, content soar. Near-term catalysts and margin growth boost outlook.

What’s the full story? Jefferies switches to a Buy rating on Disney as the analysts see a multi-pronged bull case unfolding.

Parks overhang is fading: Incremental data supports management’s bullish May commentary on forward bookings, easing fears of a FY25 slowdown from macro headwinds or Universal’s Epic Universe launch. By FY26, Experiences—60% of operating income—pivots to growth mode as two new cruise ships set sail and Epic Universe flips to an Orlando traffic tailwind. Jefferies sees 10% operating income growth in FY26, accelerating to +8% in FY27, versus a tepid +3.6% in FY24.

DTC margins are expanding—from 0% in FY24 to 13%+ by FY28E—and the content slate looks robust. Zootopia 2, Avatar 3, and ESPN’s DTC launch converge to drive upside in the next six months. Combine this with Jefferies’ $1B+ cruise revenue uplift estimate, and Disney’s stagnant operating income (FY16-FY24) is finally poised to break out.

The analysts see the stock at ~20x FY27 P/E. The House of Mouse is back.

C.H. Robinson Worldwide (NASDAQ:CHRW)

What happened? On Tuesday, Wolfe upgraded C.H. Robinson Worldwide to Outperform with a $112 price target.

*TLDR: CHRW lags S&P, shows productivity gains. Reasonable valuation, future upside potential.

What’s the full story? CHRW’s stock stumbles, down 7% year-to-date, lagging the S&P 500’s 5% gain but still outrunning Wolfe’s WR Transport Index, which nosedives 12%. The brokerage flags EPS risk in Q2 amid weaker Forwarding results but sees a rare bright spot: CHRW is one of the few stocks where Wolfe’s 2026 estimates beat consensus. As investor focus shifts toward 2026, Wolfe argues CHRW’s valuation is attractive—both absolutely and relatively.

The self-help narrative plays out. CHRW claws out productivity gains, slashing NAST headcount by 23% despite a mere 5% drop in TL volumes. GP/Load recovers significantly from Q3:23 lows, while peers flounder. Wolfe sees idiosyncratic wins here, with AI-driven labor productivity gains positioning CHRW for solid operating leverage. NAST margins could top the mid-cycle 40% target as the TL market turns. Meanwhile, CHRW eyes similar improvements in its low-margin Forwarding segment.

Valuation looks reasonable. Wolfe’s 2026 EPS estimate of $5.75 sits 5% above consensus, though below CHRW’s Analyst Day guidance. Trading at 17x 2026 EPS—below its historical 20x average and peers—CHRW eyes Wolfe’s new $112 target price, based on a 19.5x P/E multiple.

The path forward, while bumpy, may yet reward the patient.

Apple (NASDAQ:AAPL)

What happened? On Wednesday, Jefferies upgraded Apple to Hold with a $188.32 price target.

*TLDR: Apple’s Q2 growth exceeds expectations. Flat iPhone sales loom.

What’s the full story? Jefferies sees tariff-induced pull-in demand and a share rebound in China driving June quarter revenue and EPS growth of approximately 8% and 10%, respectively—roughly 5% and 9% above consensus and surpassing Apple’s low-single-digit revenue growth guidance. However, the analysts anticipate flat iPhone unit growth in the second half of 2025, citing frontloaded demand in April and May alongside a lack of compelling new features for the iPhone 17.

The market’s sanguine outlook on tariffs appears overly optimistic, and Jefferies warns of potential downside in Apple’s services revenue. Despite these headwinds, a solid third fiscal quarter in 2025 could provide near-term stability for the stock, even as broader challenges loom.

Meta Platforms

What happened? On Thursday, Needham upgraded Meta Platform (NASDAQ:META) to Hold without a price target.

*TLDR: Needham upgrades META for productivity, efficiency. Remains cautious due to risks.

What’s the full story? Needham upgrades META based on two key factors: 1) improved revenue and margin estimates from channel checks, and 2) META’s superior labor productivity metrics. The firm’s globally scaled business model—software-only, content-free, leveraging mobile devices, and offering closed-loop attribution for advertisers—drives this efficiency. META’s cost-cutting measures, including laying off and replacing 25% of its workforce from November 2022 to 2025, further bolstered productivity, despite earlier concerns around Reality Labs losses and GenAI spending.

However, Needham remains cautious. META’s strategy diffusion wastes capital and introduces risks. Structural pressure on margins and free cash flow persists, while its stock-based compensation per employee remains the highest among peers, masking true labor costs and dilution. Regulatory risks loom, and the firm believes META is over-owned, with 90% of analysts maintaining Buy or Strong Buy ratings.

Despite these challenges, META’s revenue and EPS growth—projected at 14% and 6% for FY25, respectively—underscore its resilient model. Among nine large-cap peers, META led in key labor productivity metrics in FY24, including FCF per employee and revenue per employee, reinforcing its operational strength.

Needham acknowledges META’s efficiency but remains on the sidelines, balancing upside potential with structural risks.

US Markets Closed for Independence Day