SA analyst upgrades/downgrades: TSLA, LLY, MSFT, NBIS

[Financial advisor interacts with a digital interface displaying machine learning data insights.]

Anna Sokolidou believes Tesla’s stock should trade at a fraction of its current price, citing fundamental weaknesses and skepticism about its self-driving technology. Meanwhile, Microsoft (MSFT [https://seekingalpha.com/symbol/MSFT]) received an upgrade from Star Investments, which sees the company’s premium valuation as justified given its leadership in AI and cloud markets. Similarly, Eli Lilly (LLY [https://seekingalpha.com/symbol/LLY]) was upgraded from Sell to Hold by JR Research, which believes the risk/reward balance has improved following a significant stock decline.

UPGRADES

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Microsoft Corporation (MSFT [https://seekingalpha.com/symbol/MSFT]): Upgrade Hold to Buy by Star Investments [https://seekingalpha.com/article/4812514-betting-on-the-future-why-microsofts-premium-price-is-worth-it-upgrade-from-hold-to-buy]. Analysts believe Microsoft’s premium valuation is justified by its leadership position in AI and cloud computing, strong pricing power, and comprehensive suite of AI tools.

> _“We continue to lead the AI infrastructure wave and took share every quarter this year… We stood up more than 2 gigawatts of new capacity over the past 12 months alone. And we continue to scale our own data center capacity faster than any other competitor. Every Azure region is now AI-first… The next big accelerator in the cloud will be Quantum, and I’m excited about our progress.”_

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Eli Lilly and Company (LLY [https://seekingalpha.com/symbol/LLY]): Upgrade Sell to Hold by JR Research [https://seekingalpha.com/article/4812762-eli-lilly-bears-have-spoken-loud-and-clear-upgrade]. Despite growth concerns following underwhelming Orforglipron Phase III results and intensifying competition from Novo Nordisk, the analyst believes the recent stock decline has created a more balanced risk/reward profile.

> _“I think the risk/reward has returned to a more balanced posture, giving more time for investors to reconsider Lilly’s thesis in the second half as it seeks to accelerate Orforglipron’s approval… Since the stock is still rated as a substantial premium over NVO, the onus is still on management to convince the market and defray the concerns that its TAM could be stymied.”_

DOWNGRADES

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Tesla, Inc. (TSLA [https://seekingalpha.com/symbol/TSLA]): Downgrade Hold to Sell by Anna Sokolidou [https://seekingalpha.com/article/4812787-teslas-stock-should-be-10-times-cheaper-rating-downgrade]. The analyst cites significant overvaluation, deteriorating fundamentals, lack of sales growth, and skepticism about the upcoming full self-driving model launch.

> _“The fair price a defensive investor should pay for TSLA stock is just $31.42, versus the company’s market price of about $330 as I am writing this. This means that TSLA stock should trade 10 times lower than it is trading now… Given the full self-driving failures, the fact that investors are far too optimistic about the coming September launch, and also Tesla’s lack of either sales or EPS growth, I would not recommend buying TSLA shares.”_

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Nebius Group N.V. (NBIS [https://seekingalpha.com/symbol/NBIS]): Downgrade Buy to Hold by Uttam Dey [https://seekingalpha.com/article/4812332-nebius-likely-hit-peak-gpu-capacity-downgrade]. The analyst believes Nebius has reached peak GPU capacity for 2025 with no clear path to meaningful ARR expansion beyond the $1B target, making the recent 33% stock rally excessive.

> _“I now believe the 33% jump in Nebius stock from last week has left little room for multiple expansion, capping further upside. Additionally, I have reason to believe that Nebius may have reached peak capacity in its global fleet of GPUs which supports my theory that Nebius may have reached its full revenue potential this year… I am downgrading Nebius to a Hold for now.”_

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