Here are Thursday’s biggest calls on Wall Street:
Bernstein reiterates Apple as outperform
Bernstein said it’s cautious on Apple’s continuing rollout of artificial intelligence features in 2025. “On net, we believe the initial agentic features that Apple will debut in April may be more modest than bulls may be hoping for, and that it may take time for smartphone vendors to develop compelling features that see strong adoption.”
Wells Fargo reiterates McDonald's as overweight
The firm said it’s a top idea heading into the holidays and 2025. ” MCD our top large cap restaurant idea. Recent traffic checks are improving, the E. coli case is closed, and we see pot’l for U.S. comps to exit Q4 back in the +LSD% range (via McRib, etc).”
Wells Fargo downgrades Blackstone Group LP to equal weight from overweight
Wells downgraded the stock mainly on valuation. ” BX is a leader across the alts spectrum, including in wealth—a key growth driver for coming years. But valuation is getting stretched, and we see little upside to EPS with potential risk to performance fee expectations in 1H25.”
TD Cowen downgrades Adobe to hold from buy
TD Cowen downgraded the stock following earnings Wednesday. “Net net, the long tail of users is the biggest rev driver for ADBE , and with the MT [medium term] focus on proliferating free users before leaning into monetization, we don’t see GenAI helping to bend the growth curve in the foreseeable future.”
KeyBanc downgrades T-Mobile US to sector weight from overweight
KeyBanc downgraded the stock on valuation. “We downgrade T-Mobile based on valuation, which we think has become stretched, and we’re unwilling to raise our price target to justify the valuation.”
Mizuho reiterates NVIDIA Corp as outperform
Mizuho said Nvidia is a beneficiary of GenAI power demand. “We believe this could lead to the rise of modular data centers to push AI ramps forward; positive for NVDA , AVGO, CRDO, MU and DELL.”
HSBC initiates Roblox Corporation as buy
HSBC said Roblox is “coming of age.” “Online video gaming giant Roblox has long been popular with kids, and is now winning over investors too.”
Citi adds American Airlines to its focus list
Citi said it’s bullish on the airline. “Against this backdrop, the lack of consensus on Buy-rated American’s potential could mean material share price upside from earnings surprises. As such, Citi adds American Airlines to the Focus List.”
TD Cowen names Amazon.com as top idea
TD Cowen said the e-commerce giant is a top idea in 2025. “We see 3 key drivers for AMZN shares in ’25: i) Cont’d Op Margin expansion, driven by AWS & Adv, with eCommerce benefiting from lower cost to serve; ii) Accelerating AWS rev growth; & iii) Growing net cash leads to cap allocation options.”
Baird initiates Palantir Technologies Inc. as neutral
Baird said the stock’s valuation is full right now. ” PLTR is focused on providing AI firepower to western institutions, supercharging data platforms for commercial enterprises and western governments.”
Deutsche Bank upgrades Coca-Cola , Keurig Dr Pepper, and Pepsi to buy from hold
Deutsche said in its upgrade of several beverage stocks that it sees the “potential for accelerating trends heading into 2025 it resides in restaurant/c-store traffic and more impulse purchasing.” “Becoming more positive on Non-alcoholic Beverage names (upgrading KO, PEP , and KDP to Buy to join our Buy-rated outlook on MNST and PRMB) ...”
JPMorgan reiterates Walt Disney as overweight
The firm said Disney is a top idea in 2025. “Overall: see upside to estimates and think DIS can get into beat and raise pattern. Content flywheel working, company a streaming winner.”
Goldman Sachs reiterates AT&T Inc as buy
The firm said the telecom company is a top idea in 2025. “T remains our top stock pick for 2025. We believe AT & T can continue to deliver strong performance in 2025.”
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