Analyst Upgrades in Focus: PLTR, SMCI, BAM, APP, and EVGO

The stock market’s ever-changing landscape is shaped by analyst insights, which often act as catalysts for investor decisions. In this analysis, we dissect recent upgrades and strategic shifts for five companies—Palantir (PLTR), Super Micro Computer (SMCI), Brookfield Asset Management (BAM), Apple (APP), and EVgo (EVGO)—highlighting their fundamentals, risks, and growth trajectories.

Ask Aime: Which companies are analysts upgrading?

Palantir (PLTR): Mixed Sentiment Amid Strong Fundamentals

While PLTR was included in the list of analyst upgrades for May 2025, the reality is more nuanced. On May 6, Jefferies downgraded the stock to "Underperform", citing valuation risks and slowing international growth. Despite Q1 revenue surging 39% YoY to $884M, shares fell 13% post-earnings as investors worried about margin pressures and a $124 price tag exceeding most analysts’ targets.

Ask Aime: "Is Palantir's (PLTR) recent stock price drop a buying opportunity? What's the long-term outlook?"

Key Takeaways:
- Strengths: Strong AI-driven revenue growth and expanded contracts in defense and healthcare.
- Weaknesses: Governance concerns (DOJ investigation) and decelerating European commercial sales.
- Analyst Consensus: 1 "Buy," 8 "Hold," and 3 "Sell" ratings, with a median price target of $82.

Ask Aime: "Should I buy PLTR stock now?"

Super Micro Computer (SMCI): Neutral Upgrade with Cautious Optimism

JPMorgan’s upgrade to Neutral from Underweight reflects improving visibility post-SEC filing uncertainties. SMCI’s Blackwell server shipments and rising ASPs are expected to drive near-term revenue growth. However, margin pressures from rising internal control costs and a 10x earnings multiple (discounted vs. peers) temper enthusiasm.

Key Takeaways:
- Upside: Server demand in AI and cloud infrastructure.
- Downside: Competitive pricing and DOJ-related governance risks.
- Price Target: JPMorgan raised its 12-month target to $45, up from $9x to $10x earnings.

Apple (AAPL): AI-Driven Outperform with Global Dominance

Evercore ISI’s Outperform rating and $275 price target reflect Apple’s AI-first strategy and untapped monetization opportunities. Analysts highlight:
- Services Growth: Projected >12% revenue growth driven by rising ARPU and new offerings (e.g., Apple Intelligence).
- Emerging Markets: iPhone demand in India and wearables adoption as key drivers.
- Financial Leverage: Low-teens EPS/FCF growth supported by buybacks and margin expansion.

Key Takeaways:
- Strengths: Cash-rich balance sheet ($230B+ FCF) and ecosystem dominance.
- Weaknesses: Slowing iPhone unit growth in mature markets.

Brookfield Asset Management (BAM): Moderate Buy Amid Mixed Institutional Sentiment

Analysts maintain a "Moderate Buy" consensus (12 Buy vs. 10 non-Buy ratings) for BAM, reflecting its 23% YoY capital growth and flagship BCP V fund’s 21% IRR. However, risks like delayed incentive fees and macroeconomic uncertainty cap upside.

Key Takeaways:
- Upside: Margin expansion in insurance/credit businesses and $57.95 average price target.
- Downside: Rising interest rates and institutional selling (Vanguard reduced stakes by 25%).

EVgo (EVGO): Charging Ahead with Strong Growth

EVGO’s Q1 revenue surged 36% YoY to $75.3M, with charging throughput up 60%. Analysts remain bullish, with Evercore ISI and JP Morgan reaffirming Outperform/Overweight ratings. The company aims for adjusted EBITDA breakeven in 2025, supported by 4,240 charging stalls and partnerships with EV manufacturers.

Key Takeaways:
- Upside: 36% YoY revenue growth and $360M Q2 guidance midpoint.
- Downside: High capital expenditure needs and reliance on EV adoption rates.

Conclusion: A Landscape of Divergent Opportunities

The May 2025 analyst upgrades reflect a mosaic of opportunities and risks:
1. Apple (AAPL) and EVgo (EVGO) stand out for their sustainable growth catalysts, with AAPL’s AI strategy and EVGO’s infrastructure scale driving consensus optimism.
2. SMCI and BAM offer cautious optimism, balancing growth potential against governance/valuation hurdles.
3. PLTR remains polarized: while its AI contracts are compelling, its high valuation and regulatory risks warrant caution.

Investors should prioritize sector-specific catalysts:
- Tech: AAPL’s AI monetization and SMCI’s server shipments.
- Infrastructure: EVGO’s charging network expansion.
- Asset Management: BAM’s fund performance amid macroeconomic resilience.

In a market of mixed signals, these upgrades highlight sectors where fundamentals outweigh short-term volatility.

This analysis underscores the importance of aligning with long-term trends while remaining vigilant to valuation and execution risks.