Street calls of the week: Sep 28 to Oct 2, 2026

This week's stock market calls focused on valuation discipline, as analysts adjusted their ratings based on performance and company news. On Monday, Wells Fargo downgraded FS KKR Capital to Underweight, citing significant non-accrual exposure in its loan portfolio. Fitch also cut its rating on a company to BB+, adding to funding pressures.

Stifel upgraded STAAR Surgical to Buy, raising its target price to $31 from $28. The firm expects a shift toward higher-priced EVO+ lenses in China and better year-over-year comparisons. STAAR's shares rallied 7% on the news.

Deutsche Bank downgraded Commerzbank to Hold and kept its €42 target, as the positive catalysts behind the stock's rally had likely been priced in. Barclays also downgraded Mobileye, but there were no reported share-price movements.

On the downside, Citizens downgraded Foghorn Therapeutics to Market Perform due to the termination of a drug partnership. The stock fell 18.2%, reaching $2.88 after trading at $3.52. UBS also cut Ormat Technologies to Neutral, and the stock dropped 3.4%.

Throughout the week, three of the five rating changes were downgrades after stocks had run up or slowed sharply. These downgrades often hit well-established names that had already reached peak valuations. The market seemed to experience "rally fatigue," with downgrades targeting winners and upgrades directed at struggling companies.