Analysts upgrade/downgrade AAPL, MSFT, HOOD, and MSGE

SA analyst upgrades/downgrades: HOOD and MSFT were downgraded for unsustainable valuation premiums, while AAPL and MSGE were upgraded for strong performance.

In a recent wave of analyst upgrades and downgrades, notable changes have been made to the stock ratings of several prominent companies. Seeking Alpha contributors Julian Lin and Millennial Dividends have downgraded Robinhood Markets (NASDAQ:HOOD) and Microsoft (NASDAQ:MSFT) respectively, citing unsustainable valuation premiums compared to industry peers. On the positive side, Madison Square Garden Entertainment (NYSE:MSGE) and Apple (NASDAQ:AAPL) received upgrades from analysts who see improved growth visibility and strategic initiatives offsetting previous concerns, signaling potential inflection points for these companies.

Madison Square Garden Entertainment Corp. (NYSE:MSGE) received an upgrade from Eleceed Capital, moving from a Hold to a Buy rating. 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 analyst cited a share price target of ~$55/share using consensus FY28 adj. EBITDA estimates. Apple Inc. (NASDAQ:AAPL) saw a significant upgrade from Bay Area Ideas, moving from a Strong Sell to a Hold rating. The analyst highlighted multiyear high revenue growth, notable rebounds in Greater China and iPhone sales, and significant U.S. manufacturing investments that help address tariff concerns. The outlook for the company now appears to be much less murky than before with U.S. manufacturing investments and a potential AI partnership.

Robinhood Markets, Inc. (NASDAQ:HOOD) was downgraded by Julian Lin from a Hold to a Sell rating. 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 the analyst expects cyclicality to negatively impact growth rates in a big way. Microsoft Corporation (NASDAQ:MSFT) was downgraded by Millennial Dividends from a Hold to a Sell rating. 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.

These changes reflect the analysts' views on the current market conditions and the future prospects of these companies. Investors should carefully consider these updates alongside their own research and investment strategies.

References:
[1] https://seekingalpha.com/news/4489277-sa-analyst-upgradesdowngrades-aapl-msft-hood-and-msge
[2] https://www.livemint.com/market/ipo/ipo-lock-in-of-57-companies-to-expire-in-3-months-20-billion-shares-to-flood-stock-market/amp-11756112289663.html