Here are Monday’s biggest calls on Wall Street:
Bank of America downgrades Advanced Micro Devices to neutral from buy
Bank of America said it’s concerned about market share gain potential slowing. “Higher competitive risks in AI against best-of-breed NVDA’s dominance, and growing cloud preference for custom chips from MRVL/AVGO, limiting AMD’ s market share gain potential...”
Morgan Stanley upgrades Reddit to overweight from equal weight
Morgan Stanley said the engagement and ad pipelines for the social media platform are “flowing.” “We think it’s still early for RDDT’s platform as we expect RDDT’s engagement and advertising pipelines to drive industry leading user, time spent and ad rev growth.”
Morgan Stanley reiterates NVIDIA Corp as overweight
Morgan Stanley said the tech giant is best positioned for AI growth. “Our Top Pick is NVDA, and we remain very positive on AI idiosyncratic growth drivers while lackluster cycle plays limit options elsewhere.”
Deutsche Bank initiates First Citizens BancShares as buy
Deutsche Bank said it has a favorable long term view of the commercial banking company. “We are initiating coverage on First Citizens (FCNCA; market cap of ~$31b and total assets of $220b), with a BUY rating and PT of $2600; representing 18% upside potential vs. the 12/6 closing price.”
Bernstein upgrades JD.com to outperform from market perform
Bernstein said the China retailer is well positioned heading into 2025. “A macro environment where government support acts as a periodic crutch for durables consumption should favour JD … and JD’s greater focus on profit growth versus market share should help to protect earnings in a downside case for macro and consumption incentives.”
JPMorgan reiterates Broadcom as overweight
JPMorgan said it’s bullish on the stock heading into earnings on Thursday. ” Broadcom is set to report October quarter (F4Q24) earnings Thursday, and we continued to see a strong demand profile for its AI products combined with continued cyclical recovery in its diversified semiconductor (ex-AI) end markets (e.g., enterprise, server/storage) and VMWare revenue synergy unlock.”
Jefferies downgrades Biogen to hold from buy
Jefferies said in its downgrade of Biogen that the setup looks “tough” heading into 2025 for the biotech company. “We move to HOLD as 2025 has a tough setup.”
Morgan Stanley upgrades Bank of New York Mellon to overweight from equal weight The firm said the financial services company has robust operating leverage. “Upgrade to Overweight from Equal-weight, $94 PT: Operating leverage — the number one driver of Large Cap Bank stock alpha — is BK’s North Star.”
Bank of America upgrades PayPal to buy from neutral
The firm said the stock is a turnaround story. “We upgrade PYPL to Buy from Neutral. Just over a year after C-level management change, PYPL is demonstrating increased turnaround progress, warranting a higher valuation multiple.”
Bank of America downgrades SoFi Technologies Inc. to underperform from neutral
The firm said the stock is overvalued right now. ” SOFI has already provided long-term guidance and even assuming SOFI achieves the high-end of the range, shares are trading at 20x ’26 EPS, a premium to peers. At this valuation, we view risk-reward less favorably and downgrade from Neutral to Underperform.”
Deutsche Bank names Tesla Motors a top 2025 pick
Deutsche said the stock is well positioned in 2025. “While there has been debate over the right approach to achieving full autonomy, our view is that true commercial success in robotaxi is achieved through end-to-end AI. As such, we believe Tesla is well positioned.”
JPMorgan upgrades Victoria's Secret & Co to neutral from underperform
The firm said comps are easing for shares of Victoria’s Secret. “Our math points to a +mid-single-digit comp growth opportunity throughout 1H25 (above Street +0.9%) carrying forward our modeled 2H24 comp CAGR of -2.2%.”
Roth MKM reiterates Amazon.com as buy
The firm said the e-commerce giant is a top idea in 2025. ” AMZN is our top Mega Cap pick for 2025.”
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