10 Companies That Analysts Just Upgraded

The last week was full of negativity as the S&P went down nearly 3.5%. Matters were made worse by raging wildfires in Los Angeles, which have shocked people across the country. Amidst all this, there were a lot of positive developments as analysts continued to point out companies poised for a great performance in 2025.

Artificial Intelligence stocks continue to dominate coverage despite the fear of a slowdown in spending. With agentic AI the new hype, many companies are only just entering their AI journey, so investors still have a lot of undervalued plays that are worth looking at.

To come up with the list of 10 companies that analysts just upgraded, we only considered companies with a market cap of at least $1 billion.

10. Sempra (NYSE:SRE)

Sempra received an upgrade from Morgan Stanley, which raised its price target to $98 from $85. The analysts at Morgan Stanley expect strong growth this year. Sempra operates in California and Texas. With Texas boasting the most data center-related activity among all US states, the company is set to benefit from the continuing AI spending.

Sempra has been struggling recently to manage its rising costs as well as declining revenues in the state of California. However, there are considerable growth avenues going ahead which, when looked at in the context of its stable and strong business, offer a promising risk-to-reward ratio. In fact, even though its California business is declining, the cash flows continue to stay at healthy levels.

Sempra is also different from its peers in that it has investments in both LNG and renewable energy infrastructure. The stability, diversification, and growth make for a sound investment which is reflected in the recent ratings upgrades.

9. Verint Systems Inc. (NASDAQ:VRNT)

Verint Systems offers customer engagement solutions to a global audience. Its Verint Open platform helps automate processes across the customer journey at the website and app level as well as at the contact center and back office. After a lackluster 2024, the company has now made it to the Needham Conviction List because of a number of catalysts in 2025.

Analysts expect companies to spend more on contact centers in 2025 after cutting down on this expenditure in 2022. What differentiates Verint Systems from competitors is that it uses AI to improve contact center operations. This spending should be well complemented by growth in recurring revenue, stock buybacks, and the company’s free cash flow. While there are risks associated with the stock, the drop in stock price in the last month covers a good part of those risks.