Here are Tuesday’s biggest calls on Wall Street:
Evercore ISI adds a tactical outperform on Alphabet. Evercore said it’s bullish heading into earnings later this month. “With GOOGL, we see a stock that has underperformed intra-quarter, with relatively modest Street expectations for Q3 Search (1% Q/Q), YouTube (3%), and Cloud revenue, as well as overall Operating Margins.”
Wells Fargo reiterates Tesla Motors as underweight and Rivian Automotive, Inc. as equal weight. Wells said it’s cautious on both EV stocks. ” TSLA & RIVN both reported disappointing Q3 deliveries. TSLA will likely keep using aggressive finance promos globally to keep volumes up. We est. the Q3 promotions are equivalent to ~8% lower effective px cut. We expect both to miss Q3 estimates.”
Wedbush reiterates Netflix as outperform. Wedbush raised its price target on the stock to $775 per share from $725. “We think Netflix is positioned to accelerate ad tier revenue contribution into year-end and 2025 as it improves its advertising solutions and targeting, utilizes new partnerships, and adds more live events.”
Evercore ISI reiterates NVIDIA Corp as a top pick. Evercore ISI said Nvidia remains a favorite idea at the firm. “We continue to highlight NVDA , MRVL, AVGO, AMD and ALAB as top picks heading into earnings.”
Mizuho upgrades Duke Energy Corporation to outperform from neutral. Mizuho said investors should buy the dip in the energy company. “We are upgrading DUK to Outperform from Neutral, and view the selloff related to the recent storms in the Southeast as a great buying opportunity.”
Goldman Sachs downgrades Etsy to sell from neutral. Goldman said it sees share losses for Etsy. “We downgrade ETSY to Sell with a revised $45 PT (from Neutral, $70 prior) as we continue to see risk to Street estimates given low visibility on GMS [gross margin sales], the potential for Etsy’s share losses to persist over time (vs. Global ex-China eCommerce), and the risk of margin compression in 2025.”
RBC downgrades Enphase Energy to sector perform from outperform. RBC said it sees rising competition for the solar energy company. “We downgrade ENPH to Sector Perform from Outperform, reflecting a revised valuation methodology and competitive market dynamics (see our market share report here) that we believe will result in a slower pace of growth next year not reflected in current consensus estimates.”
Morgan Stanley reiterates McDonald's as overweight. Morgan Stanley raised its price target on McDonald’s to $340 per share from $296. “Trimming 2H and a bit more tactically cautious here, though ’25 largely similar, and we still see US momentum in ‘25.”
Goldman Sachs reiterates Amazon.com as buy. Goldman said it’s sticking with its buy rating ahead of earnings later this month. “We maintain our long-term view that Amazon will produce a solid mixture of consolidated revenue growth and operating margin expansion on a multi-year view while also making critical investments in long-term growth initiatives.”
Goldman Sachs reiterates Adobe as buy. The firm said it sees “growth tailwinds” after attending the company’s Adobe MAX conference. “We reiterate our Buy rating and $640 Price Target after attending Adobe MAX 2024. We leave the conference increasingly confident in Adobe’s ability to rapidly innovate and deliver meaningful productivity boosts to users with AI and collaboration innovations, thus driving long-term sustainable user growth, higher retention, and pricing leverage.”
Citi initiates Constellation Energy Corp as neutral. Citi said it’s cautious on a delayed start to the company’s Three Mile Island nuclear plant. “We initiate with a cautious view of CEG based on thesis of 1) colocation/ behind-the-meter power deal execution may disappoint Street expectations, 2) Crane (Three Mile Island) will restart but on a delayed schedule, but 3) FCF outlook has derisked downside and uncapped upside tied to power prices and commercial activity.”
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