Wall Street Analysts Make Key Research Calls: Oracle Upgraded, Synopsys Downgraded

Synopsys was downgraded to Underperform by BofA due to uncertainty over Intel's foundry potential and higher integration costs for the Ansys acquisition. Oracle was upgraded to Buy by Citi and BofA after a strong Q1 bookings quarter. Nike was upgraded to Buy by TD Cowen, citing improved margins, new management, and improving trends. Saia was upgraded to Positive by Susquehanna, expecting a "snap-back" in Q2 earnings. nCino and Rocket Companies were also upgraded by Morgan Stanley and BofA, respectively.

Analysts have weighed in on the Q1 earnings and strategic moves of several key players in the tech sector, offering insights into the market's sentiment and future prospects.

Synopsys (SNPS)
Synopsys was downgraded to Underperform by Bank of America (BofA) due to uncertainty over Intel's foundry potential and higher integration costs for the Ansys acquisition. The company reported a mixed bag of results, with revenue at $1.74 billion and non-GAAP EPS of $3.39, dragged down by weakness in the IP business. The management attributed this to tougher export restrictions, issues at a major foundry customer, and internal resource bets that didn't pay off. Despite these challenges, Synopsys remains optimistic about its long-term growth prospects, citing the Ansys acquisition as a significant driver of diversification and growth Synopsys Q3 Soft on IP, Closes Ansys Deal^[1].

Oracle (ORCL)
Oracle was upgraded to Buy by both Citi and BofA after a strong Q1 bookings quarter. The company reported non-GAAP earnings of $1.47 per share, meeting the Zacks Consensus Estimate, with revenues rising 12% year over year. Cloud growth was a significant driver, with Oracle becoming the go-to place for AI workloads. The company signed four multi-billion-dollar contracts with leading AI companies, including OpenAI, xAI, Meta, NVIDIA, and AMD. Oracle's ambitious guidance for fiscal 2026, with expected total revenue growth of 16% in constant currency, further underscores the analysts' optimism Oracle Q1 Earnings Match Estimates, Cloud Growth Fuels Revenue Rise^[2].

Nike (NKE)
Nike was upgraded to Buy by TD Cowen, citing improved margins, new management, and improving trends. The company has been focusing on digital transformation and expanding its direct-to-consumer sales, which has been paying off. The analysts expect these efforts to continue driving growth and profitability in the coming quarters Here are Wednesday's biggest analyst calls: Nvidia, Oracle, Apple, Tesla, Nike, HP, Meta, Trade Desk & more^[3].

Saia (SAIA)
Susquehanna upgraded Saia to Positive, expecting a "snap-back" in Q2 earnings. The company has been focusing on operational efficiency and cost management, which has led to improved financial performance. The analysts believe that these efforts will continue to drive growth and profitability in the coming quarters .

nCino (NCINO) and Rocket Companies (RKT)
nCino was upgraded by Morgan Stanley, while Rocket Companies was upgraded by BofA. The upgrades reflect the analysts' positive outlook on the companies' growth prospects and strategic positioning in their respective markets .

These analyst reactions highlight the varying levels of confidence in the tech sector, with some companies facing uncertainty or challenges, while others are seen as strong growth opportunities. As always, investors should carefully consider the specific risks and opportunities associated with each company and consult with a financial advisor before making investment decisions.