Ad tech firm jumps as analyst urges investors to 'buy the dip'
New York, Friday, 11 April 2025.
Despite a broader market downturn impacting technology stocks, one mobile advertising company received an upgrade from Morgan Stanley. Analyst Matthew Cost shifted the company to overweight, signaling strong confidence in its prospects. This move defies the current market trend. Cost’s endorsement suggests a potential buying opportunity. The analyst called the company ‘ad tech’s best executor’. This could mean a turnaround for the sector.
Analyst’s rationale
Matthew Cost from Morgan Stanley upgraded the mobile ad company to overweight from equal weight [1]. This upgrade suggests that Cost believes the company’s stock will perform better than the average stock in its sector [GPT]. The analyst’s rationale likely involves factors such as the company’s financial health, competitive positioning, and growth prospects [GPT]. Investors often react positively to such upgrades, anticipating increased demand for the stock [GPT].
Broader market context
The upgrade occurs amid a general market reversal where technology stocks are trading lower [1]. This market dynamic makes the upgrade particularly noteworthy. Investors are often cautioned to consider market-wide trends. However, individual stock analysis can identify opportunities even in downturns [GPT]. The analyst’s confidence in the mobile ad company signals a potential decoupling from the broader negative sentiment affecting tech stocks [GPT].
Other analyst actions
CFRA analyst Garrett Nelson upgraded CarMax stock to “strong buy” while lowering the target price to $95 [2]. TD Securities analyst Aaron Bilkoski upgraded PrairieSky Royalty Ltd to buy, setting a target price of $27.00 CAD [4]. Conversely, HSBC strategists downgraded Indian stocks to neutral and Thai stocks to underweight due to tariff concerns and other factors [3]. These varied actions show differing outlooks across sectors and geographies [GPT].
Global market perspectives
HSBC upgraded Mexican stocks to overweight, viewing Mexico as a relative winner in ongoing trade tensions [3]. Standard Chartered upgraded Chinese stocks to overweight, citing positive views on tech and stimulus measures [5]. These ratings reflect a shifting global investment landscape. Investors are weighing factors such as trade policies and economic growth initiatives [GPT]. These adjustments suggest strategic realignments in response to evolving economic conditions [GPT].
Contrasting views in tech
Goldman Sachs analyst Mark Delaney upgraded Aurora Innovation Inc. to neutral, setting a $6.00 target price [6]. This action indicates a more balanced outlook on the autonomous vehicle sector [6]. While downgrades often trigger investor concern, upgrades can signal renewed confidence [GPT]. These varied ratings highlight the complexities of the technology sector, where company-specific factors often outweigh broader trends [GPT].