RBC Capital Markets upgraded Dollar Tree to Outperform from Sector Perform with a $195 price target and initiated PayPal at Outperform with a $75 target. It also downgraded Broadcom to Underperform with a $960 target and cut UnitedHealth to Sector Perform at $610, stirring volatility in retail, fintech and healthcare.
RBC Capital Markets adjusted ratings on four major stocks, upgrading Dollar Tree to Outperform from Sector Perform with a $195 price target and initiating PayPal at Outperform with a $75 target. The firm also downgraded Broadcom to Underperform with a $960 target and moved UnitedHealth to Sector Perform at $610.
The upgrade of Dollar Tree reflects expectations of improved consumer spending and margin expansion driven by price increases and cost controls at its discount stores. Initiation on PayPal is based on projected acceleration in digital payments growth and a favorable valuation relative to peers.
Broadcom’s downgrade is tied to concerns over peak semiconductor cycle demand and potential softness in data center spending. UnitedHealth’s rating cut stems from anticipated pressure on medical cost trends and slower membership growth from competitive dynamics in the health insurance market.
