SA analyst upgrades/downgrades: KO, PYPL, FSLY, EXPE

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Gary Alexander has upgraded Expedia (EXPE [https://seekingalpha.com/symbol/EXPE]) from Sell to Neutral, citing improved bookings acceleration and attractive valuation despite ongoing market share concerns relative to competitors. Similarly, Fastly (FSLY [https://seekingalpha.com/symbol/FSLY]) received an upgrade from Neutral to Buy as the company shows signs of a turnaround under new leadership. On the downside, Tangerine Tan Capital has downgraded PayPal (PYPL [https://seekingalpha.com/symbol/PYPL]) to Sell, pointing to increasing competition and balance sheet risks that make it more of a “value trap.” Meanwhile, Steven Fiorillo has downgraded Coca-Cola (KO [https://seekingalpha.com/symbol/KO]) to Hold, suggesting that its once-attractive dividend proposition has diminished compared to alternative income investments.

UPGRADES

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Expedia Group, Inc. (EXPE [https://seekingalpha.com/symbol/EXPE]): Upgrade Sell to Neutral by Gary Alexander [https://seekingalpha.com/article/4815136-expedia-bookings-acceleration-offset-by-market-share-fears-upgrade]. Despite lagging growth compared to peers like Booking and Airbnb, Expedia’s attractive valuation and slight improvement in bookings trends justify a less bearish stance.

> _“Expedia continues to be both the cheapest and the most fragile of the online travel stocks. In my view, I wouldn’t bank just yet on a recovery in the U.S. consumer segment (which is the key catalyst driving Expedia’s guidance boost).”_

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Fastly, Inc. (FSLY [https://seekingalpha.com/symbol/FSLY]): Upgrade Neutral to Buy by Gary Alexander [https://seekingalpha.com/article/4815224-fastly-tipped-for-a-rebound-as-traffic-heats-up-upgrade]. The analyst cites visible signs of improvement in growth metrics and customer acquisition under new leadership, along with an attractive valuation multiple.

> _“Turnaround metrics are evident as Fastly’s new leadership team executes better customer expansion… Fastly’s success in landing upsells and package deals upon renewal has led the company to improve its net retention rates to 104%, improving four points sequentially and the best reading in three quarters. In my view, it’s time to buy Fastly, as its fundamentals are showcasing visible signs of improvement amid still-cheap valuation multiples.”_

DOWNGRADES

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PayPal Holdings, Inc. (PYPL [https://seekingalpha.com/symbol/PYPL]): Downgrade to Sell by Tangerine Tan Capital [https://seekingalpha.com/article/4815162-paypal-probably-more-of-a-value-trap]. The analyst identifies intensifying competition from companies like Stripe and Adyen, rising credit losses, and balance sheet deterioration as key concerns.

> _“Last year, I was also attracted to the idea that PayPal could be a good bet to beat the S&P 500 (SPY [https://seekingalpha.com/symbol/SPY]). But I now think that PayPal is more of a value trap. The competitive situation will probably not improve, so there is a possibility that profits and sales could be affected. Additionally, there is a push towards BNPL, which could lead to significant risk if the defaults are much higher than anticipated.”_

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The Coca-Cola Company (KO [https://seekingalpha.com/symbol/KO]): Downgrade Buy to Hold by Steven Fiorillo [https://seekingalpha.com/article/4815128-coca-cola-stock-maybe-old-way-of-looking-at-dividends-losing-its-appeal-downgrade-hold]. The analyst points to limited upside potential, underperformance versus the S&P 500, and a less attractive dividend yield compared to alternative income investments.

> _“KO isn’t the value play it once was as it is trading over 20 times 2027 earnings which is close to AMZN and MSFT with a fraction of the forward growth. I’m downgrading my investment thesis because of opportunity cost not because of its underlying business, as I don’t believe the dividend is as appealing as it once was and I also don’t see KO outpacing the S&P 500 going forward.”_

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