Here are Friday’s biggest calls on Wall Street:
Goldman Sachs reiterates Tesla as neutral
Goldman said it’s sticking with its neutral rating on the stock.
“Consumers continue to view Tesla as a leader on technology. Overall net future purchase intentions for Tesla remain below the other major auto brands and are down from a year ago, although have increased somewhat over the last few months.”
Bank of America reiterates Nvidia as buy
Bank of America said top pick Nvidia remains “compelling” heading into earnings on May 22.
“In our view, valuation remains compelling, with NVDA stock currently trading around 29x CY25E [calendar year] PE [price earnings] on current consensus and lower on more bullish investor expectations, so towards lower-end of the 24x-48x historical next annual PE range.”
Wells Fargo reiterates Netflix as overweight
Wells said the “advertising opportunity is arriving” for Netflix.
“We have increased conviction in our above-consensus fwd. estimates as NFLX’s ad strategy looks set to drive incremental earnings.”
Citi reiterates Reddit as buy
Citi raised its price target on the stock to $70 per share from $65.
“Yesterday, after the close, Reddit announced a new data licensing agreement with OpenAI and while terms of the agreement were not disclosed, we believe they are similar to Reddit’s DL agreement with Google.”
Bank of America upgrades Coinbase to neutral from underperform
Bank of America said it sees an improving crypto environment.
“We are upgrading COIN to Neutral following our updated view that (1) the current macro environment has been a positive for cryptocurrency market cap appreciation and trading volumes; (2) COIN’s expense discipline and ability to benefit from operating leverage following large expense cuts in 2022 will help it maintain profitability going forward.”
Citi initiates Roblox as buy
Citi lowered its price target on Roblox to $40 per share from $52 but said it’s sticking with its buy rating.
“We are updating our model to account for 1Q24 results and our latest outlook.”
Goldman Sachs reiterates Chevron as buy
Goldman said it’s sticking with its buy rating on the oil and gas giant.
“Chevron Corp. (CVX): Reiterate Constructive View on Inflecting FCF Generation and Relative Valuation; Buy with 13% Total Return.”
Macquarie upgrades JD.com to outperform from neutral
Macquarie said shares of the China retailer have bottomed.
“We upgrade JD to Outperform (from N) as we believe the company has bottomed out from its year-long transition period.”
Morgan Stanley downgrades Baidu to equal weight from overweight
Morgan Stanley said it sees limited catalysts ahead for the China tech company.
“Baidu’s core rev +4% YoY in 2Q, and weak ads outlook is set to linger. Cloud growth to accelerate but AI monetization still at early stage. Stock has rallied 17% but we see limited near-term catalysts.”
Morgan Stanley reiterates Salesforce as overweight
The firm said Salesforce remains a top idea at the firm.
“Near-term caution is offset by our increasingly bullish medium-term outlook, where CRM is well positioned for GenAI & valuation remains undemanding.”
Bank of America reiterates Marvell as buy
Bank of America said it’s sticking with its buy rating heading into earnings on May 30.
“MRVL reports post-close on Thu, May-30. We expect results and outlook (for +6% QoQ sales growth, a return to QoQ growth) to be largely in line with consensus, but believe that could be sufficient to support the stock that has lagged behind other AI/compute peers.”
Wolfe upgrades United Airlines to outperform from peer perform
Wolfe said it sees “improving domestic main cabin trends” for the airline.
“While UAL has already outperformed YTD, we see more to go for the stock given strong fundamentals for legacy airlines and our expectation for improving domestic main cabin trends in 2H as capacity growth finally moderates back in line with GDP.”
