Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week.\n\nCoinbase (NASDAQ:COIN)\nWhat happened? On Monday, Compass Point downgraded Coinbase (NYSE:COIN) to Sell with a $258 price target.\n*TLDR: Compass Point eyes crypto volatility amid weak fundamentals.\nWhat’s the full story? Compass Point maintains a cautiously optimistic stance on the current crypto cycle, though it anticipates a turbulent third quarter. Weak August and September seasonality, coupled with fading retail enthusiasm for crypto treasury stocks, are likely to drive volatility.\nThe firm also expects intensifying stablecoin competition to pressure valuations of both COIN and CRCL in the second half of 2025, aligning with its July downgrade of CRCL. Despite the broader crypto bull market, COIN’s second and third-quarter trends underscore deteriorating earnings, leaving little room for valuation support if crypto markets retreat further.\nThe brokerage’s $248 price target for COIN reflects a 25x multiple on its upbeat 2026 EBITDA projections. However, at 44x Street estimates for annualized third-quarter 2025 EBITDA, the stock remains richly priced.\nCompass Point highlights the disconnect between COIN’s valuation and its weakening fundamentals, signaling potential headwinds ahead for investors in the crypto space.\n\nBlock Inc.\nWhat happened? On Tuesday, Morgan Stanley downgraded Block Inc. (NYSE:XYZ) to Equalweight with a $73 price target.\n*TLDR: Morgan Stanley prefers Chime over Block’s Cash App.\nWhat’s the full story? The tier 1 bank argues valuation is fair at 21x 2026 P/E, with Square and Cash App growth already priced in, calling XYZ a crowded long ahead of Q2 results. While Square Seller shows progress via SMB survey data, Cash App’s low-income user base limits monetization potential. Morgan Stanley sees Block leaning on credit expansion—Borrow loans, Afterpay—to sustain double-digit gross profit growth, per their Digital Wallet Survey.\nYet, the bank remains skeptical, focusing on whether credit-driven inflows and direct deposit growth can offer durable predictors of long-term potential beyond short-term P&L boosts.\nIn the fintech space, Morgan Stanley shifts its preference to Chime (OW, $39 PT) over Block’s Cash App, citing Chime’s superior execution, consistent product development, and stronger primary account attachment among its user base.\nMSCO views Chime as better positioned in the low-to-mid-income U.S. banking opportunity, outshining Block’s struggles to deepen customer engagement and drive sustainable growth.\n\nCarMax\nWhat happened? On Wednesday, JPMorgan upgraded CarMax (NYSE:KMX) to Neutral with a $58 price target.\n*TLDR: JPMorgan upgrades CarMax to Neutral despite lingering challenges.\nWhat’s the full story? JPMorgan shifts its stance on CarMax (KMX) to Neutral from Underweight, citing rock-bottom sentiment and management’s belated acknowledgment of ongoing challenges. The bank notes KMX’s underperformance—lagging broader indices and auto retail peers over multiple timeframes—with shares trading at 13x FY2 EPS, well below the long-term average of 16.5x. While risks persist, JPMorgan sees modest cyclical support on the horizon, including a potential recovery in late-model used car supply by 2026-2027 and ongoing share buybacks (20% of market cap remaining).\nStill, KMX faces hurdles: disappointing execution, sluggish strategic pivots, and underwhelming unit economics. Peer Carvana’s resurgence, growing at 45% annually with superior unit economics, has further raised the competitive bar.\nThe bank highlights KMX’s struggles: flat share gains despite omni-channel investments, underperformance in its auto financing arm (CAF), and volume declines since 2019. Modest offsets—cost reductions, warranty improvements, off-balance sheet financing—have failed to meaningfully boost EBITDA per unit, which remains ~25% below 2019 levels.\nFor KMX’s multiple to re-rate, JPMorgan insists market share must recover to pre-omni levels, at least +300bps above the industry. Until then, the bank remains cautious, waiting for tangible proof of turnaround.\n\nCommScope\nWhat happened? On Thursday, BofA Securities double upgraded CommScope (NASDAQ:COMM) to Buy with a $20 price target.\n*TLDR: BofA upgrades CommScope, betting on post-sale upside.\nWhat’s the full story? BofA double upgrades CommScope from Underperform to Buy after its move to offload CCS, the cash cow generating 62%-74% of EBITDA, to Amphenol (NYSE:APH). The deal, part of a broader breakup strategy, aims to dodge default risk, unlock sum-of-parts value, slash debt, and ditch Carlyle’s preferred equity.\nWith the remaining Ruckus and ANS segments trading at a dirt-cheap 3x EV/EBITDA, the analysts see a clear runway for upside—pinning a $20 price target by valuing the residual business at a cautious 6x EV/EBITDA pro-forma, ex-CCS.\nThe analysts argue the CCS sale isn’t just a fire sale but a surgical strike to streamline CommScope’s bloated structure. BofA bets the market’s overlooking the hidden gems in Ruckus and ANS, suggesting the stock’s been unfairly hammered.\nIt’s a classic case of Wall Street missing the forest for the trees, with CommScope now positioned to emerge leaner and more focused, even if it means shedding its crown jewel.\n\nPeloton\nWhat happened? On Friday, Goldman Sachs upgraded Peloton (NASDAQ:PTON) to Buy with a $11.50 price target.\n*TLDR: Peloton pivots to wellness, scaling fast.\nWhat’s the full story? Peloton’s latest earnings report paints a picture of a company pivoting hard into wellness, personalization, and scale.\nGoldman sees strategic initiatives aimed at expanding beyond fitness, weaving in elements of coaching, and targeting new markets like micro-stores, travel operators, and education. International expansion is on the table, as is a laser focus on user loyalty and retention. Quarterly results show improved subscriber monetization, hardware growth, and margins, with FY26 revenue guidance hinting at $200M+ in free cash flow. Peloton’s playbook? Widen the ecosystem, scale fast, and lean into wellness’s cultural moment.\nGoldman upgrades Peloton from Neutral to Buy, with a 12-month price target jumping from $7 to $11.50. Why? Management’s cost discipline, widening use cases, and go-to-market strategies—both hardware and app-based—signal potential for compounded revenue growth and higher EBITDA margins. The company’s pivot toward health and wellness aligns with societal trends, and its platform is primed for innovation and monetization. Goldman sees a return to revenue growth by mid-FY26, but investor confidence hinges on clearer execution details in the next 12-18 months.\nFor now, Peloton’s story is one of transformation, scale, and, maybe, redemption.

Street Calls of the Week

Wall Street analysts provided recent updates on several public companies, including downgrades for Coinbase and Block Inc., an upgrade for CarMax, a double upgrade for CommScope, and a buy rating for Peloton. Compass Point downgraded Coinbase to Sell, citing weak fundamentals and rising volatility. Morgan Stanley downgraded Block to Equal Weight, favoring Chime over Cash App due to better user engagement and growth prospects. JPMorgan upgraded CarMax to Neutral, noting persistent challenges despite modest cyclical support. BofA Securities upgraded CommScope to Buy after its sale of the CCS segment to Amphenol, highlighting potential upside in remaining segments. Goldman Sachs upgraded Peloton to Buy, citing a strategic pivot into wellness, improved monetization, and strong growth signals in hardware and app-based services.