Here are Wednesday’s biggest calls on Wall Street:
Loop reiterates Nvidia as buy
The firm said it’s standing by the stock heading into earnings on Wednesday.
“While there has been increased ‘noise’ throughout the Gen AI ecosystem of late the net of our work suggests that NVDA’s anticipated demand trajectory remains intact, and our work frankly hasn’t picked up on any material alterations to our broader expectations.′
Bernstein reiterates Apple as outperform
The firm said Apple is a “best idea.”
“We view Apple as a quality compounder, with mid-single digit revenue growth, improving margins, disciplined capital return, and double-digit EPS growth.”
Goldman Sachs reiterates Microsoft as buy
Goldman said it’s standing by the stock following the company’s Ignite Conference in Chicago on Tuesday.
“We reiterate our Buy rating and $500 PT following Ignite 2024 where Microsoft unveiled Gen-AI advancements across the tech stack, strengthening our conviction in Microsoft’s ability to become the platform-of-choice as AI spend moves from the Infrastructure layer to the Platform and Applications layers.”
JPMorgan reiterates Amazon as overweight
The firm said the stock is a best idea heading into the holidays.
“Amazon maintains a leading ~45% share of US e-comm & enters the holiday season with strong momentum from early holiday promotions, SD1D delivery [same day one day], regionalization, expansion of the Prime ecosystem, & competitive prices (see the pricing study below). AMZN remains our Best Idea.”
Pivotal reiterates Netflix as buy
Pivotal raised its price target on Netflix to a Street high $1,100 from $925.
“Post the (mostly) successful Tyson/Paul fight, which was streamed by a massive ~65M households (and likely ~150M+ viewers) we raised our medium/long term subscriber and ARPU forecasts, which combined with a modest increase in our terminal EBITDA multiple led to a $175 increase in our NFLX YE′25 target price to $1,100.”
Bank of America reiterates Walmart as buy
Bank of America raised its price target to $105 per share from $95 following earnings on Tuesday.
“We see support for WMT’s outlook as broad-based share gains continue and long-term profitability improves supported by growth of high-margin digital advertising and 3P Marketplace seller fees as well as improvements in core ecommerce losses.”
Piper Sandler initiates AppLovin as overweight
Piper said the software publisher is an “AI innovator with more room to run.”
“We initiate APP with an OW rating and $400 PT. Shares have appropriately re-rated following an AI-driven acceleration, but we still see upside. APP’s technology has driven ad revenue growth well above the market, and we see room to drive monetization/minute higher.”
Morgan Stanley reiterates Adobe as overweight
Morgan Stanley said the stock is in a “uniquely position.”
“Limited disclosure has left the Adobe investor story rudderless amidst rising competitive pressures and a fast moving GenAI innovation cycle. However, broad workflows and deep data sets uniquely position Adobe to leverage GenAI, while historically low multiples frame an attractive risk/reward.”
Morgan Stanley upgrades Lemonade to equal weight from underweight
Morgan Stanley says it’s getting “significantly more optimistic” in the insurance stock.
“Lemonade charted an ambitious goal of growing its business from $1 billion in premiums to $10 billion over the next few years.”
Evercore ISI adds Dell to the tactical outperform list
The firm said it’s bullish ahead of earnings next week.
“DELL is well positioned to report upside to consensus Oct-qtr rev/EPS estimates of $24.69B/$2.07, driven by strength in ISG segment on the heels of storage, general-purpose compute, and AI server strength.”
Bank of America upgrades Chewy to buy from underperform
Bank of America said in its upgrade of the stock that trends are stabilizing.
“We upgrade Chewy to Buy from Underperform & raise our PO to $40 from $24. Shelters are still taking in more pets on a net basis and YoY pet spend is negative, per BAC aggregated credit & debit card data.”
Guggenheim upgrades SolarEdge to neutral from sell
Guggenheim said it sees a more balanced risk/reward for the solar company
“The decline in SEDG’s stock price has brought the stock close to our previous target of $10. Although we’re making some additional revisions to our model, at this point we regard the stock as fairly valued at approximately 10x our 2026 EBITDA estimate.”
Citi downgrades Target to neutral from buy
The firm downgraded the stock following earnings on Wednesday morning and says it’s losing share.
“We are downgrading TGT from Buy to Neutral. Though 3Q may have had some unique challenges, we believe very poor results at TGT in 3Q (and an uninspiring outlook for 4Q) show TGT is likely losing share to WMT.”
HSBC upgrades Trip.com to buy from hold
HSBC upgraded the travel website following earnings.
“Trip.com’s 3Q revenue was largely in line, but the adj OP [operating performance] margin set a post-COVID high of 34.4% on lower marketing spending.”
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