SA analyst upgrades/downgrades: AAPL, MSFT, HOOD, and MSGE

[Investing Balance]
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Seeking Alpha contributors Julian Lin and Millennial Dividends have downgraded Robinhood Markets (NASDAQ:HOOD [https://seekingalpha.com/symbol/HOOD]) and Microsoft (NASDAQ:MSFT [https://seekingalpha.com/symbol/MSFT]) respectively, citing unsustainable valuation premiums compared to industry peers.

On the positive side, Madison Square Garden Entertainment (NYSE:MSGE [https://seekingalpha.com/symbol/MSGE]) and Apple (NASDAQ:AAPL [https://seekingalpha.com/symbol/AAPL]) received upgrades from analysts who see improved growth visibility and strategic initiatives offsetting previous concerns, signaling potential inflection points for these companies.

UPGRADES

* Madison Square Garden Entertainment Corp. (NYSE:MSGE [https://seekingalpha.com/symbol/MSGE]): Upgrade Hold to Buy by Eleceed Capital [https://seekingalpha.com/article/4816363-madison-square-garden-entertainment-stock-upgrade-buy-better-growth-clarity]. The upgrade reflects strong FY26 bookings already secured, plans for a new residency to replace Billy Joel’s concerts, and robust consumer spending trends. _“The FY26 event calendar is recovering faster than expected, a new residency provides long-term visibility, and consumer spending strength is a lot better than I expected. At 15x forward EBITDA, which is in line with historical averages, I have a share price target of ~$55/share using consensus FY28 adj. EBITDA estimates. I am upgrading MSGE to a buy rating.”_

* Apple Inc. (NASDAQ:AAPL [https://seekingalpha.com/symbol/AAPL]): Upgrade Strong Sell to Hold by Bay Area Ideas [https://seekingalpha.com/article/4816574-apple-an-inflection-point-may-have-arrived-upgrade]. The analyst cites multiyear high revenue growth, notable rebounds in Greater China and iPhone sales, and significant U.S. manufacturing investments that help address tariff concerns. _“Key results such as Greater China sales and iPhone sales showed notable improvement, and both the top and bottom line saw acceleration from Q2. As discussed just a moment ago, the outlook for the company now appears to be much less murky than before with U.S. manufacturing investments and a potential AI partnership. As a result, the company still seems to have a path to a bright future.”_

DOWNGRADES

* Robinhood Markets, Inc. (NASDAQ:HOOD [https://seekingalpha.com/symbol/HOOD]): Downgrade Hold to Sell by Julian Lin [https://seekingalpha.com/article/4816317-robinhood-its-2021-all-over-again-memes-are-back-ratings-downgrade]. The analyst believes Robinhood’s explosive growth and profitability are unsustainable, with transaction-based revenue likely to face cyclical headwinds despite recent momentum. _“The stock’s valuation indicates that investors expect the good times to continue, but I expect cyclicality to negatively impact growth rates in a big way. With the stock trading at an unjustifiably large premium to peers, I am downgrading the stock to a sell rating.”_

* Microsoft Corporation (NASDAQ:MSFT [https://seekingalpha.com/symbol/MSFT]): Downgrade Hold to Sell by Millennial Dividends [https://seekingalpha.com/article/4816394-microsoft-not-worth-your-money-at-current-price-level-downgrade]. Despite strong cloud performance and a solid long-term outlook, the analyst sees the current valuation of 36.5x earnings as too stretched compared to a fair value range of 28-32x. _“Microsoft’s Q4 FY25 were a blowout thanks to strong Azure growth, despite the capacity-constraints. I expect Q1-Q2 FY26 may be a similar success story, yet it doesn’t justify to be buying Microsoft’s shares at elevated valuation of P/E 36+… Even being a different business altogether, you are better off standing on the sidelines, waiting for another dip as we’ve seen in March-April this year.”_

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