Analysts are intrested in these 5 stocks: ( (DFTX) ), ( (ANF) ), ( (BBWI) ), ( (DUOL) ) and ( (CODX) ). Here is a breakdown of their recent ratings and the rationale behind them.
Definium Therapeutics is suddenly in the spotlight as analysts see blockbuster potential in its late‑stage psychedelic-based treatments for major depressive disorder and generalized anxiety. Tazeen Ahmad initiated coverage with a Buy rating and a $75 price objective, arguing that DT120’s strong phase 3 data in both MDD and GAD could unlock a multibillion-dollar opportunity if upcoming September GAD results confirm its best‑in‑class profile.
The bullish view on Definium is rooted in estimates of about $13.3 billion in peak sales across MDD and GAD, supported by roughly 5 million addressable moderate to severe patients. With shares around $45 and net cash on the balance sheet, Ahmad believes the market still discounts key clinical and regulatory risks, including competition in psychedelics, capacity limits at treatment centers, and uncertainty around how quickly patients and physicians will embrace LSD‑based therapies.
Abercrombie & Fitch has enjoyed a powerful rally, but one key analyst is now stepping to the sidelines. Rick Patel downgraded ANF to Market Perform from Outperform after a roughly 25% surge since first-quarter results, saying the current price near $105 already reflects a fair 9x P/E multiple in line with peers and his outlook for fiscal 2027 earnings growth.
Patel’s concerns center on mixed comparable sales trends and lingering weakness at Hollister, especially in Europe and the Middle East. His channel checks show softer Google Trends data, higher promotions into back‑to‑school, and only modest upside for A&F’s core brand, leading him to forecast flat comps at Hollister and low-single-digit growth at A&F, with earnings estimates slightly below Street expectations.
Bath & Body Works is moving back into favor as one analyst flags an attractive setup ahead of second-quarter results. Paul Lejuez upgraded BBWI from Neutral to Buy, keeping a $25 target price and highlighting a likely EPS beat, a positive reaction to recent product launches like the Fruit Fusion collection, and a depressed stock price that offers a compelling free-cash-flow yield.
Lejuez models 2Q EPS of $0.26 versus consensus at $0.24 and sees sales decline less than guided, helped by strong web traffic growth and stable trends. He believes lower energy costs and possible refunds on previously paid tariffs could provide upside to full-year earnings, while management is likely to keep guidance conservative, setting up BBWI as a potential under‑the‑radar winner over the next 12 months.
Duolingo is emerging as a renewed growth story in the eyes of Wall Street. Wyatt Swanson upgraded DUOL from Neutral to Buy with a $160 price target, arguing that recent product improvements, marketing changes, and a better monetization engine are not fully appreciated by investors and could support a long runway for earnings and user growth.
The upgrade hinges on signs that daily active users have entered a new phase of acceleration, with June marking an inflection point and July–August data showing continued strength across user cohorts. Swanson notes that revived streak users are sticking with the app, suggesting deeper engagement and pointing to a turning point where DAU growth and bookings may finally align, potentially justifying a richer valuation for the language-learning platform.
Co-Diagnostics is getting fresh attention as it nears key regulatory milestones for its point-of-care PCR Pro device. Jason McCarthy upgraded CODX from Hold to Buy with a $4 price target, expecting that upcoming data and filings for respiratory and tuberculosis tests could transform the company’s revenue profile over the next 6–12 months despite the need for additional capital.
The investment case centers on PCR Pro, a desktop RT‑PCR system aiming to deliver gold‑standard performance at under $1,000 with razor‑and‑blade economics on test cartridges. A 510(k) filing for a U.S. upper respiratory panel has been submitted, with a potential approval by early 2027, while an India-focused tuberculosis trial could lead to faster CDSCO approval as soon as late 2026, giving CODX access to large primary care markets just as demand for rapid diagnostics continues to rise.