Here are the biggest calls on Wall Street on Monday:
Morgan Stanley reiterates Apple as overweight
Morgan Stanley raised its price target on the iPhone maker to $273 per share from $216. The bank also said it is a new top pick in place of Dell.
“Apple is now our Top Pick.”
Loop Capital upgrades Apple to buy from hold
Loop says Apple can be a “Gen AI base camp” for the next several years.
“We’re upgrading to Buy and $300 PT as the work of Loop Capital Supply Chain Analyst John Donovan suggests that AAPL has an opportunity [over] the next few years to solidify itself as consumer’s Gen AI ‘base camp’ of choice, just as it did for social media 15 years ago and digital content consumption 20 years ago.”
Wells Fargo reiterates Tesla as underperform
Wells Fargo says Tesla fundamentals remain too “weak.”
“We maintain our UW on TSLA. While the stock rose ~40% (S&P +4%) over the last month, mostly driven by ‘razzle-dazzle’ headlines as most fundamentals remain weak. We raise our Q2 EPS on deliveries & energy, but lower our FY24E on tariff & pricing.”
TD Cowen reiterates Nvidia as buy
TD Cowen raised its price target on the dominant maker of artificial intelligence processors to $165 per share from $140.
“Overall we see a product roadmap indicating a relentless pace of innovation across all aspects of the AI compute stack and reiterate Nvidia as a Top Pick, PT to $165.”
Morgan Stanley reiterates Netflix as overweight
Morgan Stanley raised its price target on Netflix to $780 per share from $700 before it reports results on Thursday.
“We expect continued strong results from Netflix heading into 2H24, raise estimates and our PT to $780.”
Morgan Stanley reiterates Microsoft as overweight
Morgan Stanley said it has “increased clarity” on AI monetization.
“Our CIO survey results showcase Microsoft’s leading GenAI beneficiary position, but the investor debate on the scale of capex investments versus the magnitude and timing of the GenAI revenue opportunity has risen.”
Bank of America reiterates Amazon as buy
Bank of America said it is bullish heading into Prime Day on Tuesday for Amazon.
“We estimate Prime Day could generate $13bn in [gross merchandise value].”
TD Cowen reiterates Advanced Micro Devices as buy
TD Cowen raised its price target on AMD to $210 per share from $200.
“Over the last 9 months, sentiment has moved (up and down) much more than fundamentals at AMD as Datacenter upside was until now masked by downside in other segments.”
Citi downgrades Electronic Arts to neutral from buy
Citi downgraded the video game maker mainly on valuation.
“Since fiscal 4Q24 results, EA’s shares have risen ~15% on optimism around the upcoming release of College Football.”
Morgan Stanley downgrades BP to equal weight from overweight
Morgan Stanley downgraded the oil major due to “weak earnings.”
“BP’s disappointing trading update follows several quarters of weak earnings, putting 2025 guidance at risk. We lower our rating back to Equal-weight.”
Morgan Stanley downgrades Rocket Lab to equal weight from overweight
Morgan Stanley said it sees a “limited catalyst path” for the space company.
“We downgrade Rocket Lab (RKLB) to EW from OW and lower our PT to $6 from $8 as we see a more limited catalyst path and grow more cautious re: [Department of Defense] Space spend.”
Citi downgrades Bank of New York Mellon to neutral from buy
Citi downgraded Bank of New York Mellon following earnings and a record-high close, mainly citing valuation.
“Mgmt. has made great strides towards their medium term targets, and we see stock as fairly valued at 2.5x [tangible book value] and as a result we are downgrading our rating to Neutral.”
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